Alkermes $ALKS has seen a huge rally in the last three days after the company announced positive top-line results from its FORWARD-5, which is the third Phase 3 efficacy study to read out from the FORWARD pivotal program for ALKS 5461. The drug is being developed as a once-daily, oral investigational medicine with a novel mechanism of action for the adjunctive treatment of major depressive disorder ("MDD") in patients with an inadequate response to standard antidepressant therapies.

The study met its pre-specified primary endpoint showing treatment with ALKS 5461 significantly reduced symptoms of depression in patients with MDD compared to placebo. The drug was also generally well tolerated.

Despite the rally, ALKS is still down more than 28% for the year. The stock is also trading around 50% below its 52-week high. Remember that the company has a very strong balance sheet, with more than $650 million in cash & equivalents and short-term investments on its balance sheet. Therefore, there is no near-term dilution risk for ALKS. I believe that this is still a good opportunity to buy ALKS despite the recent rally.