Amedica (AMDA): Did You Feel the Ground Shake, Too?

Maxim's Jason McCarthy dives into AMDA's standout silicon nitride asset sidelined only on capital needs.


Amedica Corporation (NASDAQ:AMDA) is Smarter Analyst’s bull of the day with shares firing up a monster 123%. What has sent Wall Street’s biotech-verse into such a buying frenzy today? The drug maker just posted a clinical update on four silicon nitride ceramic implant trials: a single center retrospective study, a multi-center retrospective study, a Silicon Nitride Against PEEK study, and a goat study.

Two trials will investigate long-term results in silicon nitride-based spinal implants, with one juxtaposed to allograft. Addtionally, two trials will look into silicon nitride implants/cages compared to the current standard of care, polyetheretherketone or PEEK. Maxim analyst Jason McCarthy sees the big jump in share value as a clear reaction to today’s clinical buzz.

Though the analyst is intrigued by the biotech player’s fundamentals, he reiterates a Hold rating on AMDA stock without listing a price target. (To watch McCarthy’s track record, click here)

Keep in mind, the analyst notes, “Recall that silicon nitride is a ceramic material with multiple attributes/properties that make it a potentially superior material (durability, strength, fracture & corrosion resistance, promotes bone growth, anti-bacterial properties) for implants (spine, knee, dental, other) vs. other ceramics. Key to driving surgeon conversion/adoption of Amedica’s silicon nitride-based products is building awareness with clinical studies (prospective and retrospective), publications and presentations.”

Ultimately, “Shares of AMDA are up sharply today, over 100%, we believe in reaction to today’s news. Our view, as described above is that silicon nitride is a superior material for implants and building awareness is key to driving adoption (and thus revenue growth). Our Hold rating is not based on fundamentals of the company but rather its capital needs, which the company is working to address,” McCarthy surmises.

TipRanks points to an overwhelmingly neutral analyst consensus surveying AMDA stock. All 3 analysts polled in the last 6 months rate a Hold on AMDA. With a return potential of 75%, the stock’s consensus target price stands at $4.35.

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