Adamas Pharmaceuticals Inc’ (ADMS) Gocovri Has Mizuho Confident Following Favorable Expert Call

Lead asset for ADMS indicates promising prospects in Parkinson's along with valuable opportunity in MS.


Adamas Pharmaceuticals Inc (NASDAQ:ADMS) shares are rising nearly 5% today in pre-market trading as the drug maker prepares to host an Investor and Analyst meeting this morning in New York City.

Mizuho analyst Irina Rivkind Koffler is chiming in this morning with a bullish research note. Specifically, the analyst hosted an “encouraging expert call” on Friday with a practicing neurologist, where she discussed the prospects of ADMS drug Gocovri, which just garnered the FDA green light for the treatment of Parkinson’s disease- notably, the first and only medicine that has won FDA approval in this indication.

Following a discussion with the expert who appears to be quite “enthusiastic about trying Gocovri” and seeing an end not just with Parkinson’s but “another good opportunity” in the indication of multiple sclerosis (MS), the analyst maintains a Buy rating on shares of ADMS with a price target of $26, which represents a close to 21% increase from current levels. (To watch Koffler’s track record, click here)

The doctor noted to Koffler that he presently gives amantadine doses to roughly 20 to 30 of his 300 total Parkinson’s patients, and interestingly enough, also offers the drug to 40 to 50 of his 200 MS patients. Moving forward, the expert even is open to the possibility of using Gocovri over its generic counterpart. Moreover, “The physician liked the dosing convenience of the drug, the impressive increase in ON time, and the availability of a lower 68.5 mg dose that provides additional dosing flexibility and the potential to improve tolerability. He also viewed some of its anticholinergic side effects as a benefit to help overcome drooling,” highlights Koffler.

When it comes to apprehensions, most point to reimbursement, which the analyst is not surprised, saying this is “as expected.” In fact, “we think the specialty pharmacy distribution may help alleviate this issue,” Koffler continues. While the analyst notes the expert explored concerns of lofty AE drop out rates hanging around 20% against rival Newron’s just approved Xadago in levodopa-carbidopa; treatment alternatives of the likes of Rytary and Duopa to lesson dyskinesia; and a caution when it comes to amantadine in more elderly or renally impaired patients, with the doctor wanting to track Gocvori in 12 patients for half a year to a year before making decisions how to “think about the compound longer-term,” overall, the conversation weighed positively in ADMS’ favor.

Finding that MS could be another valuable channel for Gocovri, Koffler concludes: “Our expert indicated he already utilizes amantadine to treat fatigue in his MS patients and would also consider the drug for patients with post-stroke fatigue, ALS, and traumatic brain injury. A combination treatment of Gocovri with carbidopa/levodopa was also suggested, and we hope to get more visibility on fixed dose combinations at the Analyst Day.”

When it comes to the voice of Wall Street on this biotech firm, it belongs to the bulls, with TipRanks analytics exhibiting ADMS as a Strong Buy. Based on 6 analysts polled by TipRanks in the last 3 months, all 6 rate a Buy on Adamas stock. The 12-month average price target stands at $36.40, marking a 69% upside from where the stock is currently trading.