ALKS News & Events

Alkermes (ALKS) rose 15% after Eli Lilly (LLY) agreed to acquire Centessa Pharmaceuticals (CNTA), reflecting renewed M&A momentum in biotech, Leerink tells investors in a research note. While the boost highlights Alkermes' strong orexin franchise, the stock could also attract interest from other large pharma companies seeking a presence in this therapeutic area, the firm says. Leerink has a Market Perform rating on Alkermes shares.

After Eli Lilly (LLY) announced the intent to acquire Centessa (CNTA) for $6.3B in cash plus an additional $1.5B split across 3 contingent value rights, RBC Capital said the deal highlights large pharma interest in the sleep space and "underscores what could likely be a large indication," which is "favorable" for Alkermes (ALKS). The firm, which thinks Alkermes' current share price is undervaluing the orexin program alone given comps, notwithstanding the profitable core business, has an Outperform rating and $45 price target on the shares.

Alkermes is up 17.7%, or $5.34 to $35.49.

Shares of Alkermes ALKS) are moving higher after Eli Lilly (LLY) reached an agreement to acquire Centessa (CNTA) for up to $7.8B. Alkermes, like Centessa, is developing an orexin 2 receptor for narcolepsy. Alkermes in midday trading is up 18%, or $5.53, to $35.68.