Goldman Sachs analyst Terence Flynn downgraded Alkermes (ALKS) to Sell from Neutral with a price target of $15, down from $19.

The stock closed Wednesday down 6% to $18.91.

Following the company's Q2 results, the analyst reduced his sales ramp for "key" pipeline drug ALKS 3831 ahead of a potential FDA approval in November.

Flynn does not view the profile of ALKS 3831 for schizophrenia/bipolar disorder as "transformative" and lowered estimates to reflect a more conservative launch curve. His 2022-2023 estimates are now below consensus. Flynn sees 20% downside in the shares and "limited pipeline optionality" for Alkermes.