Point72 Is Betting on Adamas Pharmaceuticals Inc (ADMS); Shares Soar

Adamas Pharmaceuticals Inc (NASDAQ:ADMS) is a mover and shaker out on the Street today, with investors sparking the stock on an almost 19% upturn. The reason? Apparently, Billionaire Steve Cohen’s fund Point72 Asset Management remains confident in the drug maker’s ability to create value for shareholders. The fund just disclosed in a regulatory filing a new stake in Adamas, bolstering its holding by a massive 895% to 1,144,000 additional shares. Now, Point72 has an investment of 1,259,000 shares worth $29,573,910.

Point72 is an American family controlled investment company or family office managing the assets of its founder, Steven Cohen, and eligible employees. S.A.C. Capital Advisors was founded in 1992 and converted its investment operations to the Point72 Asset Management family office in 2014. The Firm’s long/short investment divisions are Point72 Asset Management and EverPoint Asset Management. Cubist Systematic Strategies is its quantitative investing business. Point72 also operates Aperio, a “big data” research and investing unit. Point72 has its main office in Stamford, Connecticut and there are several satellite offices around the world.

Recently, Mizuho analyst Irina R. Koffler boosted her price target on ADMS from $26 to $48, while reiterating a Buy rating on the stock. The valuation boost was based on higher Gocovri pricing and greater opportunity in MS. (To watch Koffler’s track record, click here)

Koffler wrote, “We previously modeled annual Gocovri pricing of $14,400 but mgmt. announced annual price of $28,500 per patient. Additionally, we better appreciate the pipeline opportunity in MS gait, and raised peak estimates to $266M, from $92M previously, while increasing risk-adjusted revenues for LID. Importantly, we lowered Gocovri estimates in 2018 after management conservatively guided to less than 1% market penetration but steepened our ramp trajectory after 2019 once reimbursement improves and MS gait may get approved in 2020. We still assign no value to the ADS-4101 program in epilepsy, which may get out-licensed, but see this asset as a sense of future upside.”

In addition, in a report issued on October 25, Needham analyst Serge Belanger reiterated a Buy rating on ADMS, with a price target of $38, which implies an upside of 65% from current levels. Separately, on October 3, Piper Jaffray’s David Amsellem reiterated a Buy rating on the stock and has a price target of $30.

Sentiment on the street is mostly bullish on ADMS stock. Out of 6 analysts who cover the stock, 6 suggest a Buy rating . The 12-month average price target assigned to the stock is $32.50, which implies an upside of 41% from current levels.

Adamas is a pharmaceutical company, which engages in discovery and development of chrono-synchronous therapies for chronic neurologic disorders. Its products includes ADS-5012, ADS-4101, and Namenda XR. The ADS-5102 is a treatment for levodopa-induced dyskinesia in patients with Parkinson’s disease. The ADS-401 treats partial onset seizures in patients with epilepsy. The Namenda XR is a drug treatment for moderate to severe Alzheimer’s disease.

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