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Analyst maintains stock target, Buy rating on Amicus amid competition

EditorNatashya Angelica
Published 08/07/2024, 18:08
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On Monday, Stifel maintained its Buy rating and $20.00 stock price target for Amicus (NASDAQ:FOLD) Therapeutics (NASDAQ:FOLD), a biotechnology company. The firm's endorsement comes despite concerns over market competition from a significant rival product, Nexviazyme.

Amicus's recently approved treatments for late-onset Pompe disease (LOPD), Pombiliti & Opfolda (PomOp), are seen as key contributors to the company's value, with a projected revenue guidance for fiscal year 2024 ranging between $62 million and $67 million.

The analyst at Stifel highlighted that although the introduction of Nexviazyme has led to some negative sentiment towards Amicus's stock, a new physician survey conducted in the United States, involving 30 respondents, provided a positive outlook for PomOp.

The survey revealed that the drug is gaining traction and is generally perceived positively when compared to alternatives such as Lumizyme and Nexviazyme. This is notable given that fiscal year 2024 will mark PomOp's first full year on the market.

The survey findings also indicated a trend of patients switching from Nexviazyme to PomOp, with a growing number of respondents favoring PomOp over Lumizyme. This suggests that physicians see potential for PomOp to achieve comparable or even greater market share than Nexviazyme over time.

Stifel's analysis is based on the survey results, which suggest a gradual success for PomOp rather than immediate market dominance. The firm's continued support for Amicus reflects a long-term positive outlook on the drug's market performance and share growth potential. The firm anticipates that PomOp will eventually establish a strong position in the treatment landscape for late-onset Pompe disease.

In other recent news, Amicus Therapeutics has been making significant strides. Wells Fargo (NYSE:WFC) has initiated coverage on Amicus Therapeutics with an Overweight rating, setting a price target of $18.00.

This decision is primarily based on the recent FDA approval and subsequent launch of Amicus' drug, PomOp, designed to treat Pompe disease. Wells Fargo analysts project that Amicus will generate $72 million in revenue for 2024, surpassing both the consensus and the company's own guidance.

In addition to this, Amicus Therapeutics reported a strong start to 2024, with a 28% year-over-year increase in total revenue, reaching $110 million in the first quarter. The company's leading product, Galafold, contributed $99 million to the revenue, marking a 16% increase from the previous year. Following these results, Amicus raised its full-year revenue growth forecast from 11-16% to 13-17%.

These recent developments indicate a positive growth trajectory for Amicus Therapeutics. The successful launch of new therapies and the raised guidance reflect the company's confidence in its continued growth and profitability.

As Amicus navigates the expanding markets for Fabry and Pompe diseases, it continues to deliver life-changing therapies while exploring new business opportunities to enhance its product pipeline.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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