Yeah, Zacks came out today with a negative read on JNJ's decision. BUT read this and worry less.

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27-Aug-09
06:50 ALKS Alkermes: Four-week Consta discontinued: minimal impact expected for next couple years - Leerink Swann (10.37 )

Leerink Swann notes that yesterday, ALKS announced that its partner JNJ decided to discontinue development of the four-week version of Risperdal Consta. Because JNJ recently received FDA approval for Invega Sustenna (a four-week version of Invega), they are not overly surprised by the decision. The decision is unlikely to have near-term rev impact as the only head-to-head study of Sustenna against Consta failed to show non-inferiority of Sustenna. They believe that doctors will not heavily prescribe Sustenna despite the dosing convenience but it does raise questions about JNJ's long-term marketing focus. They note if JNJ chooses to emphasize Sustenna over Consta, it could hurt ALKS revs, but they don't see why JNJ would want to cannibalize $1.3 bln in rev. Overall, they believe that the outcome of Byetta LAR filing, which is still indeterminate, is a greater driver of value than the outcome of the four-week Consta.