Citi analyst Liav Abraham says the two Phase 3 trial failures for ALKS 5461 highlight the clinical challenges in the development of novel drugs for major depressive disorder and supports his Neutral rating on Alkermes. The drug is "down, but not necessarily out," Abraham tells investors in a research note. Favorable data from the third pivotal study, called FORWARD-5, could support a regulatory filing of the compound with FDA, the analyst contends. He points out that the FDA granted Fast Track status to ALKS- 5461 and could be amenable to a regulatory filing based on positive FORWARD-5 data coupled with the Phase II study. This is not a certainty, however, and is dependent on positive headline data for FORWARD-5, Abraham cautions. He notes that ALKS-5461 represents 20% of his net present value for Alkermes shares. The analyst has a Neutral rating on the name with a $71 price target. The stock is down 41%, or $24.92, to $35.50 in late morning trading.