|Written by GSCR Staff|
|Tuesday, 24 February 2015 07:01|
In yesterday’s Goldman Guide we discussed the healthcare and biotech sector performance so far in 2015.
We alluded to the fact that M&A activity has been a little slow in biotech so far this year and some deals could get things going. Right on cue, it was announced yesterday that Valeant Pharmaceuticals International, Inc. (NYSE – VRX) purchased Salix Pharmaceuticals Ltd. (NASDAQ – SLXP) for $10.4 billion. While this deal was out of our small cap price range, it is possible that the trickledown effect could start here.
Amicus Pharmaceuticals, Inc. (NASDAQ – FOLD - $8.69)is a stock that appears to be on a great run and making progress when it comes to FDA trials. With a short float under 5%, and a very bullish EMA for short through long term, FOLD has few contrarians and another check mark when it comes to technical analysis.
The Company focuses on the discovery, development, and commercialization of medicines for various rare and orphan diseases. It develops enzyme replacement therapies (ERTs) for lysosomal storage disorders (LSDs), including Fabry disease, Pompe disease, and Mucopolysaccharoidosis Type I (MPS I). The Company also develops novel small molecules as monotherapy treatments for Fabry disease and Parkinson's disease. Its chaperone-advanced replacement therapy program is used to develop next-generation ERTs by co-formulating therapeutic enzymes with proprietary pharmacological chaperones. The Company's lead programs include the small molecule pharmacological chaperones, migalastat HCl as a monotherapy that is in Phase III global registration studies for Fabry patients with genetic mutations; and AT2220 (duvoglustat HCl), which has completed Phase II safety used for the treatment of Pompe disease. Its products also comprise AT-B200, a proprietary recombinant human acid-alpha glucosidase that is in late preclinical development for Pompe disease; and AT3375 for treating Gaucher disease. The Company has strategic collaboration with GlaxoSmithKline PLC to develop and commercialize migalastat HCl
Earlier this month, the Company reported positive results for two of its pipeline candidates.Amicus previously reported positive Phase 3 data in both treatment naïve, or FACETS and enzyme replacement therapy (ERT) switch patients for Fabry disease. Results from these studies have shown that treatment with migalastat has resulted in reductions in disease substrate, stability of kidney function and improvement in a key cardiac parameter (left ventricular mass index, or LVMi) in patients with amenable mutations. The Company also reported significant progress with its Pompe disease in efficacy tests in mice.
With continued FDA success the Company should continue momentum. We think FOLD continues the upward trend all the way up to the $10.50 level by 3Q15.
Have a great day!
Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.
This Market Monitor blog was prepared for informational purpoklses only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research, which typically highlights small cap companies, and Goldman Opportunity Research, which features micro cap companies in a sponsored research format. Thus, the Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports.
Goldman Small Cap Research is not affiliated in any way with Goldman Sachs & Co.
It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. Please view the company’s individual disclosures for each engagement, which can be found in each company-specific report. All information contained in this blog, newsletter and in our reports were provided by the Companies or generated from our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.
The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small CapResearch blog, report, note, or newsletter is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.
This blog does not take into account the investment objectives, financial situation, or particular needs of any particular person. This blog does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA or with any state securities regulatory authority.
ALL INFORMATION IN THIS BLOG, REPORT OR NEWSLETTER IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLECONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLECONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.
For more information, visit our Disclaimer: www.goldmanresearch.com