This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Alkermes Adds Multiple Sclerosis Pill to Expanding Pipeline

ALKS Chart ALKS data by YCharts

BOSTON ( TheStreet) -- In our current biotech investment mania, preclinical drug candidates are worth about $1 billion each (See: Epizyme (EPZM), Bluebird (BLUE) and soon Agios (AGIO)) so Alkermes' (ALKS - Get Report) market value should rise by $3 billion more today after introducing investors to three new drugs still in the lab and not tested on actual patients yet.

Jokes aside, investors have been rewarding companies for beefier pipelines, even if the new drug candidates are in the very earliest stages of development. On Wednesday, Alkermes doubled the size of its pipeline and promised to undertake early clinical studies within the next year to determine quickly whether or not these new drugs had the potential to become big winners for the company and shareholders.

Alkermes CEO Richard Pops, as you might expect, struck a very optimistic tone about his bolstered pipeline during a presentation in downtown Boston.

"We're addressing big markets, big drug opportunities with modern science," said Pops, reminding investors once again that the days of Alkermes being known only for cashing royalty checks on its drug delivery technologies are over.

Alkermes shares closed Wednesday trading up 5% to $31.07.

The most intriguing of the new drugs announced Wednesday was an enhanced and novel prodrug of monomethyl fumarate (MMF), the active ingredient inside Biogen Idec's (BIIB - Get Report) multiple sclerosis pill Tecfidera.

Alkermes showed preclinical data Wednesday suggesting its MMF prodrugs (the company has two candidates in development) could be dosed once per day (Tecfidera is taken twice a day) and cause fewer gastrointestinal side effects.

The company expects to seek permission from FDA to begin human testing of its MMF prodrugs for multiple sclerosis in 2014, with a phase I study slated to begin mid-year. Composition of matter patents have been filed, which if granted, would give the drugs long patent protection, Alkermes said.

By all accounts, the Biogen commercial launch of Tecfidera has exceeded expectations, with analysts expecting second quarter sales (the first full quarter of sales) of $70 million and 2013 sales to exceed $400 million. Tecfidera could become a blockbuster i.e. exceed $1 billion in annual sales in 2014.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ALKS $63.07 0.00%
BIIB $404.28 0.00%
XNPT $6.32 0.00%
AAPL $126.44 0.00%
FB $87.28 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs