Alkermes plc (ALKS) reported positive top-line data from a phase I study on its experimental multiple sclerosis (MS) drug, ALKS 8700.
I’m always interested to see how the heads of finance explain a move in the markets. I’ll let you guys in on a secret. News does not drive stocks. It never has and never will. Its just a perception that holds no water at all. ALKS didn’t jet 5% on positive Phase I news. In fact, what this means is that ALKS will now have to spend another $1 billion to get it through Phase II, just to see if it works on Humans. If the Phase II pops positive, then ALKS spends another $3 billion for Phase III and the potential FDA approval. Then we have a reason for the shares to head north.
If I were a betting man, I’d say the ramp in the ALKS shares is just a bunch of dip buyers making the bull bet.
Either way, new meds with positive phase results is good for the research biz – 🙂
SMZ
