Alkermes reversed its position from last month and said it will see a profit in fiscal 2009 after receiving a payment from Eli Lilly & Co.

Eli Lilly will pay the company $25.5 million, the remainder from its development partnership on AIR inhaled insulin. An additional $15.5 million had been paid during the fiscal 2008 fourth quarter.

Indianapolis-based Eli Lilly ended that program in February, citing expectations for a tough regulatory process and a weak market if approved. Pfizer Inc. made the only inhaled insulin to reach the market, but discontinued the product last year because of lagging sales.

Cambridge, Mass.-based Alkermes now expects profit between 11 cents and 16 cents per share on revenue between $200 million and $225 million, up from prior guidance for a loss of 11 cents to 16 cents per share on revenue between $175 million and $200 million.

Analysts polled by Thomson Financial expect, on average, a loss of 10 cents per share on revenue of $194.9 million.

In May, Alkermes had forecast a fiscal 2009 loss, as it cut 150 jobs and closed a manufacturing plant in Chelsea, Mass. in the wake of the AIR inhaled insulin decision. But, the company remains partners with Eli Lilly and Amylin Pharmaceuticals Inc. on Exenatide LAR, a longer-lasting version of the diabetes drug Byetta.

Neponse Equity Research analyst Noelle Tune, for Soleil Securities Group Inc., reaffirmed a "Buy" rating with a $17 price target on the stock, and said the company is likely to dodge full-year losses going forward.

"Of note, while additional minor payments from Eli Lilly may trickle in over the coming months, we expect this $25.5 million payment, along with ALKS receiving (patent) rights to the Chelsea facility, to close the chapter on AIR Insulin," Tune said, in a note to investors.

Alkermes has also expanded its stock buyback program by $40 million to $215 million.

Meanwhile, Cowen and Co. analyst Ian Sanderson reaffirmed a "Neutral" rating on the stock, citing the competitive risks for the company's two most anticipated programs; Exenatide LAR and Risperdal Consta, a long-acting form of the schizophrenia drug made by Johnson & Johnson. That partnership is Alkermes' most lucrative.

"Longer-term, Alkermes shares do have attractive upside potential, but appreciation will require that Byetta (Exenatide) LAR royalties more than compensate for the expected erosion of the Risperdal Consta royalty stream," he said in a note to investors.

Alkermes is also developing Vivitrol as an alcohol dependence treatment.

Alkermes reversed its position from last month and said it will see a profit in fiscal 2009 after receiving a payment from Eli Lilly & Co.

Eli Lilly will pay the company $25.5 million, the remainder from its development partnership on AIR inhaled insulin. An additional $15.5 million had been paid during the fiscal 2008 fourth quarter.

Indianapolis-based Eli Lilly ended that program in February, citing expectations for a tough regulatory process and a weak market if approved. Pfizer Inc. made the only inhaled insulin to reach the market, but discontinued the product last year because of lagging sales.

Cambridge, Mass.-based Alkermes now expects profit between 11 cents and 16 cents per share on revenue between $200 million and $225 million, up from prior guidance for a loss of 11 cents to 16 cents per share on revenue between $175 million and $200 million.

Analysts polled by Thomson Financial expect, on average, a loss of 10 cents per share on revenue of $194.9 million.

In May, Alkermes had forecast a fiscal 2009 loss, as it cut 150 jobs and closed a manufacturing plant in Chelsea, Mass. in the wake of the AIR inhaled insulin decision. But, the company remains partners with Eli Lilly and Amylin Pharmaceuticals Inc. on Exenatide LAR, a longer-lasting version of the diabetes drug Byetta.

Neponse Equity Research analyst Noelle Tune, for Soleil Securities Group Inc., reaffirmed a "Buy" rating with a $17 price target on the stock, and said the company is likely to dodge full-year losses going forward.

"Of note, while additional minor payments from Eli Lilly may trickle in over the coming months, we expect this $25.5 million payment, along with ALKS receiving (patent) rights to the Chelsea facility, to close the chapter on AIR Insulin," Tune said, in a note to investors.

Alkermes has also expanded its stock buyback program by $40 million to $215 million.

Meanwhile, Cowen and Co. analyst Ian Sanderson reaffirmed a "Neutral" rating on the stock, citing the competitive risks for the company's two most anticipated programs; Exenatide LAR and Risperdal Consta, a long-acting form of the schizophrenia drug made by Johnson & Johnson. That partnership is Alkermes' most lucrative.

"Longer-term, Alkermes shares do have attractive upside potential, but appreciation will require that Byetta (Exenatide) LAR royalties more than compensate for the expected erosion of the Risperdal Consta royalty stream," he said in a note to investors.

Alkermes is also developing Vivitrol as an alcohol dependence treatment.

Alkermes reversed its position from last month and said it will see a profit in fiscal 2009 after receiving a payment from Eli Lilly & Co.

Eli Lilly will pay the company $25.5 million, the remainder from its development partnership on AIR inhaled insulin. An additional $15.5 million had been paid during the fiscal 2008 fourth quarter.

Indianapolis-based Eli Lilly ended that program in February, citing expectations for a tough regulatory process and a weak market if approved. Pfizer Inc. made the only inhaled insulin to reach the market, but discontinued the product last year because of lagging sales.

Cambridge, Mass.-based Alkermes now expects profit between 11 cents and 16 cents per share on revenue between $200 million and $225 million, up from prior guidance for a loss of 11 cents to 16 cents per share on revenue between $175 million and $200 million.

Analysts polled by Thomson Financial expect, on average, a loss of 10 cents per share on revenue of $194.9 million.

In May, Alkermes had forecast a fiscal 2009 loss, as it cut 150 jobs and closed a manufacturing plant in Chelsea, Mass. in the wake of the AIR inhaled insulin decision. But, the company remains partners with Eli Lilly and Amylin Pharmaceuticals Inc. on Exenatide LAR, a longer-lasting version of the diabetes drug Byetta.

Neponse Equity Research analyst Noelle Tune, for Soleil Securities Group Inc., reaffirmed a "Buy" rating with a $17 price target on the stock, and said the company is likely to dodge full-year losses going forward.

"Of note, while additional minor payments from Eli Lilly may trickle in over the coming months, we expect this $25.5 million payment, along with ALKS receiving (patent) rights to the Chelsea facility, to close the chapter on AIR Insulin," Tune said, in a note to investors.

Alkermes has also expanded its stock buyback program by $40 million to $215 million.

Meanwhile, Cowen and Co. analyst Ian Sanderson reaffirmed a "Neutral" rating on the stock, citing the competitive risks for the company's two most anticipated programs; Exenatide LAR and Risperdal Consta, a long-acting form of the schizophrenia drug made by Johnson & Johnson. That partnership is Alkermes' most lucrative.

"Longer-term, Alkermes shares do have attractive upside potential, but appreciation will require that Byetta (Exenatide) LAR royalties more than compensate for the expected erosion of the Risperdal Consta royalty stream," he said in a note to investors.

Alkermes is also developing Vivitrol as an alcohol dependence treatment.

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DRUNK !!

AIR® Insulin

Downgraded by WR Hambrecht from Buy to Hold

NEW DRUGS

Another delivery name, will garner positive emotion as it marches toward its own inhaled insulin. Many products under development, many relationships w/majors. Good balance sheet. Cheap stock. Recent Q is cathartic