Expectations Deflated for Alkermes

This column was originally published on RealMoney on Dec. 1 at 10:29 a.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

After an extraordinary downshift in the outlook for specialty pharma player Alkermes (ALKS Quote), the stock is beginning to look more attractive now that a bit of reality has set in.

Earlier in the year, the company had been riding high on the prospects for its new alcoholism treatment, Vivitrol, and a generous co-promotion deal with Cephalon (CEPH Quote). This product reached the U.S. market in June, and in its first full quarter on the market, it missed just about all of the market's forecasts with only $1.1 million in sales. This prompted management to bring down its Vivitrol sales forecasts for the full year to a range of $5 million to $10 million, from $35 million to $40 million, previously. This performance also brought at least one high-profile analyst downgrade and more cautious investor sentiment overall. ...