Goldman Sachs analyst Corinne Johnson has maintained their neutral stance on AMLX stock, giving a Hold rating today.
Corinne Johnson has given his Hold rating due to a combination of factors surrounding the performance and prospects of Amylyx Pharmaceuticals Inc. One key reason for the cautionary stance stems from the preliminary data of the Phase 2 HELIOS trial for the drug AMX0035. Although the drug showed initial activity in patients with Wolfram Syndrome after 24 weeks, there have been indications of diminishing effects between the 12- and 24-week marks. This variability casts uncertainty on the longer-term efficacy of the drug.
Moreover, the broader potential of AMX0035 is still in question following the disappointing results from the recent Phase 3 PHOENIX trial. The market’s reaction to the interim data was negative, with the stock price declining by 8% in contrast to a smaller 1.8% drop in the broader biotech index. Johnson also factors in the revised peak sales projections and the probability of success, which have been adjusted in light of these developments. Until the full top-line data is released in the second half of 2024 and further outcomes at 36 and 48 weeks are observed, a Hold rating reflects a prudent approach to the uncertainties surrounding Amylyx Pharmaceuticals Inc’s drug development path.
In another report released today, Robert W. Baird also maintained a Hold rating on the stock with a $3.00 price target.
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Amylyx Pharmaceuticals Inc (AMLX) Company Description:
Amylyx Pharmaceuticals Inc is a clinical-stage pharmaceutical company working on developing a novel therapeutic for amyotrophic lateral sclerosis and other neurodegenerative diseases.
