Amicus Positioned for Growth with Strategic Licensing and Promising FSGS Treatment

Leerink Partners analyst Joseph Schwartz has reiterated their bullish stance on FOLD stock, giving a Buy rating yesterday.

Joseph Schwartz has given his Buy rating due to a combination of factors that highlight Amicus’s strategic positioning and potential for growth. The company has recently entered into a licensing agreement for DMX-200, a promising treatment for focal segmental glomerulosclerosis (FSGS), which is a rare renal condition with no current FDA-approved therapies. This move is seen as a strategic effort to capitalize on the regulatory advancements in the FSGS space, potentially offering a significant market opportunity given the estimated 15-30k addressable patients in the US.
Additionally, the successful interim analysis of the Phase 3 ACTION3 study for DMX-200 underscores its potential efficacy, with previous trials showing promising results in reducing proteinuria among patients. The financial terms of the agreement, including a $30 million upfront payment and up to $560 million in milestone payments, reflect a well-structured deal that could yield substantial returns. These factors, combined with the successful launches of Galafold and Pombiliti/Opfolda, reinforce the positive outlook for Amicus, justifying the Buy rating.

In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $20.00 price target.