Mizuho Applauds Adamas Pharmaceuticals Inc (ADMS) on Surprise Home Run for Gocovri as Shares Jet 47%

Adamas Puts CRL Fears to Rest with Gocovri (Amantadine) Approval


If investors had feared Adamas Pharmaceuticals Inc (NASDAQ:ADMS) could have been at risk of receiving a Complete Response Letter from the FDA for Gocovri (amantadine), a huge sigh of relief is echoing through Wall Street today. The biotech firm revealed its drug received a green light in dyskinesia in Parkinson’s patients taking levodopa, and shares are rocketing 47% today.

Mizuho analyst Irina Rivkind Koffler for one is reassured that the coast is clear with an outcome that served as a positive curveball, putting at ease apprehensions of a prospective unfavorable label.

In reaction, the analyst reiterates a Buy rating on ADMS stock with a price target of $26, which represents a 25% increase from current levels. (To watch Koffler’s track record, click here)

“There is no REMS program associated with this drug, and Adamas was able to include efficacy data on both the ON and OFF effects of the medication (including patient diary data showing ~3 additional hours of improved function per day, which may be well-received by doctors and payors, in our view). There was also no post-marketing commitment. The one downside is that the drug seems to be associated with more hallucinations (31%), falls (17%), and orthostatic hypotension (8%) in patients over the age of 65 who represent the majority of the Parkinson’s population, but management clarified that its target patient population skews younger (with earlier onset of Parkinson’s), due to longer use of levodopa that causes LID,” Koffler concludes, emphasizing: “This may be an important read-through to the future MS indication because that disease occurs in younger patients where the drug has fewer side effects.”

Adamas’ Gocovri has a good chance to be out in the market later this year and set for an official launch by January through a specialty pharma distribution. Though pricing awaits to be revealed next month, rumor has it the tag will range between $10,000 to $30,000 per year, with the analyst calling for $14,400 per year based on a present model contingent upon penetration of existing amantadine prescriptions.

TipRanks analytics showcase ADMS as a Strong Buy. Out of 4 analysts polled by TipRanks in the last 3 months, all 4 rate a Buy on Adamas stock. The 12-month average price target stands at $31.00, marking a 53% upside from where the stock is currently trading.

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