Alkermes, Inc. (ALKS)

CAPS ALL STAR

Great CEO. Richard Pops.Back in the job from chairman. First spoke with him ten years ago when he was 37 - very impressive.

Alkermes is an up-and-down kind of stock that is constantly bucked and tossed between opposing waves of optimism and pessimism. My trigger finger has been itching since it dropped below 8 and today I bought 2000 shares at 7.73. Why does Alkermes deserve a buy over other biotechs on my watchlist that appear underpriced (Allos, GTX, Neurocrine)? The main reason is safety of the investment. The five year low on the stock was 6.37, seen in November 2008, and the share price was back over 10 two weeks after that. This year the price has been as high as 13. I can't imagine this stock making a new five year low in this market, with the stable income from Risperdal Consta limiting their losses and an impending massive PDUFA for weekly exenatide in March 2010. The current weakness seems to be a shortsighted response to a minor earnings shortfall in the midst of a declining trend. Sure, the trend could carry the stub below 7 in the short-term, but if Alkermes is below 15 prior to the PDUFA I'll be surprised.

Financials improving around the world.

This account tracks the performance of newly minted 4 star stocks - 3 star stocks that recently turned in to 4 star stocks.

good price

Current 8.80, Oct 2 09. Limit 7.77

I think the FDA will approve Byetta since the product is currently on the market and has not had any side effect issues.

If this scenario plays out it will be a huge boost to both Amyln and Alkermes.

from scottrade

Very high profit margin

Very low P/E

Very high forward P/E

Earnings expected to grow at a rate of 42% over the next 5 years.

Very little debt (LT Debt/Equity is .12)

I put this stock at $30-40 by sometime next year. (Brave I know)

Enjoy!

DH

Two hit wonder

Usually a company with this much potential is over-priced and carries a lot of risk. However, ALKS is not over-priced in my opinion and thus does not carry very much risk.

Earnings growth over the next 5 years is expected to be 42%. Price to Book Ratio right now is less than two and the company is turning a profit. Leadership is sound with an extremely competent CEO named David Broeker. He's been through both MIT and the University of Chicago! More importantly, he worked for Eli Lily for 16 years, and has been the CEO of ALKS since 2002. At Eli Lily, he managed the largest pharmaceutical manufacturing facility outside of the U.S.

The next Dendreon let the roller coaster begin. A once a week injectable med for Diabetes is hugh. As iIdiabetic myself this is something I would be very intrested in

Alkermes has a patented protein microsphere that can momentarily relax the blood-brain barrier that protects our brain and thereby allow medicines to be administered directly to the brain.

Its AIR technology provides for the atomizing of medications that then can be inhaled and enter the blood stream through the lungs. Currently it is partnered for the development of inhaled insulin.

It also has a patented subcutaneous timed-release capsule called medisorb which allows insulin to be injected once every week rather than once per day.

Its partnership with J&J for Riserperdal Consta is a money maker!

A few years ago ALZA bought 7% of Alkermes. Later J&J bought ALZA, which means J&J not only is partneredf with ALKS, but owns 7% of the company.

ALKS is poised to break out significantly with the marketing of one or more of their unique drug formulations incorporated into one of their patented delivery systems.

Good PE - Like medical stocks

goooooooood

Alkermes owns proprietary technology for momentarily relaxing the Blood-Brain barrier which would allow medication to be administered directly to the brain for the treatment of CNS conditions.

Furthermore, ALZA has taken a 7% interest in ALKS prior to be acquired by JNJ. Therefore, not only is JNJ partnered with ALKS for Risperdal Consta, but it has a 7% stake in the company.

Add to that their other partnerships which employ the ALKS AIR technology for inhalable medications (Insulin?) and their subcutaneous time-release technology (Medisorb) which reduces the number of times an individual must inject medications that are required over a prolonged period of time , and-----I believe we have a potential Blockbuster!

Undervalued.

Irrational market beating for potential molecule, which may or may not have a non-existent problem. Should do well ihf/when Long Acting Byetta gets to the market