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Why Amicus Therapeutics Stock Rose Last Week

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Stock performance

Amicus Therapeutics (FOLD) saw a 19% rise in its stock in the week ended May 18. On May 18, Amicus Therapeutics stock closed at $16.74, a 126% increase from its 52-week low of $7.41 on May 18, 2017. Amicus Therapeutics stock has risen 116% over the past year.

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Reasons for the hike in stock prices

In March 2018, the Japanese Ministry of Health, Labour, and Welfare (or MHLW) approved Galafold oral small molecule chaperone for the treatment of patients who are over 16 years old with Fabry disease, a rare genetic condition where an individual has a deficiency of alpha-galactosidase A. Presently, Galafold is the only approved oral precision medicine for the treatment of Fabry disease in Japan. Studies estimate that about 850 individuals in Japan are living with Fabry disease. Galafold’s Japanese MHLW approval was based on the results from the pivotal phase 3 FACETS and ATTRACT trials.

Amicus Therapeutics anticipates Galafold to generate revenues in the range of $75 million to $85 million in fiscal 2018. Amicus Therapeutics has already submitted a new drug application to the US FDA (Food and Drug Administration) for approval of Galafold for the treatment of Fabry disease. The US FDA has granted Amicus Therapeutics NDA a priority review and provided a Prescription Drug User Fee Act action date of August 13, 2018. FDA approval of Galafold is expected to significantly boost the revenue growth of Amicus Therapeutics in 2018.

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In the first quarter, Amicus Therapeutics reported revenues of $16.7 million compared to $4.2 million in the first quarter of 2017. On March 31, 2018, Amicus Therapeutics reported total cash, cash equivalents, and marketable securities of $605.2 million compared to $358.6 million on December 31, 2017. Amicus Therapeutics reported a net loss of $49.9 million in Q1 of 2018 compared to $55.0 million in Q1 of 2017.

Analysts’ recommendations for Amicus and its peers

Of the six analysts tracking Amicus Therapeutics in May 2018, three of them recommended a “strong buy,” while two analysts recommended a “buy.” One analyst recommended a “hold.” On May 20, Amicus Therapeutics had a consensus 12-month target price of $19.64, which represents a ~17.3% return on investment over the next 12 months.

Of the 22 analysts tracking Bristol-Myers Squibb (BMY) in May, 36% recommended a “buy.” Of the 21 analysts tracking Merck (MRK) in May, 76% of the analysts recommended some form of a “buy” rating. Of the 20 analysts tracking Eli Lilly (LLY), ~60% of them recommended some form of a “buy” rating.

On May 20, Bristol-Myers Squibb, Merck, and Eli Lilly had a consensus 12-month target price of $58.30, $69.05, and $90.89, respectively, which represents ~10.6%, 16.8%, and ~10.8% return on investment over the next 12 months.

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