As previously reported, Morgan Stanley analyst David Risinger downgraded Alkermes to Underweight from Equal Weight after he reduced projections for the company's key growth franchise, Vivitrol for addiction disorder. Vivitrol prescription trends weakened in recent weeks, noted Risinger, who believes moderation in state Vivitrol uptake added to scrutiny of marketing for the drug are causing a greater negative impact than anticipated. Also, after speaking with a few physicians and doing more analysis, the analyst has become more concerned about the potential for disappointing news over the next six months for the company's late-stage schizophrenia and depression candidates, he tells investors. Risinger cut his price target on Alkermes shares to $42 from $67.

UBS lowered the firm's price target on Alkermes to $23 from $25 and keeps a Sell rating on the shares. UBS believes Alkermes stock will likely continue to underperform, as the FY24 guidance seems unachievable and there are no pipeline catalysts remaining for the year, the analyst tells investors in a research note.