Jefferies analyst Biren Amin downgraded Alkermes (ALKS) to Hold from Buy with an unchanged price target of $66. The shares closed yesterday down $1.56 to $63.19. The stock is fairly valued and price in "significant value" for the late-stage pipeline, Amin tells investors in a research note. He believes that Vivitrol and Aristada continue to experience "modest growth," which is unlikely to drive Alkermes shares higher. Further, following a "deep dive" on immuno-oncology candidate ALKS 4230, Amin believes preclinical data suggest the drug may be weaker on efficacy than Nektar Therapeutics' (NKTR) interleukin-2 receptor NKTR-214. ALKS 4230 is "inherently different" from NKTR-214 based on cross comparison of preclinical data, Amin writes in a research note partially titled "Closer Look at IL-2 Science Suggests Not All IL-2s Are The Same."

Biolojic Design announced that Nektar exercised its license option to develop a program resulting from the companies' research collaboration initiated in 2021. The research collaboration was established to design and test agonistic antibodies targeting tumor necrosis factor receptor type II, a novel, biologically-validated disease target implicated in a wide range of autoimmune diseases that has been difficult to drug with conventional medicines. The antibody program selected for development is designed to modulate the TNFR2 pathway in order to agonize - or activate - T regulatory cells and other anti-inflammatory cell populations, making this a promising approach to stimulating the immune system in ulcerative colitis, multiple sclerosis, vitiligo, and other autoimmune disease states. Under the 2021 research agreement, Nektar has tested antibodies computationally designed by Biolojic Design to precisely agonize the TNFR2 receptor. Following successful preclinical in vitro and in vivo studies, Nektar decided to exercise the license option and has been advancing the program through IND enabling studies since late December, 2023. If the NKTR-0165 candidate proceeds through clinical development, Biolojic Design is entitled to development milestones and sales royalties.