Amicus Therapeutics shares tanked Friday as analysts downgraded the biopharmaceutical company after it reported disappointing test results for its Pompe disease drug.
Pompe disease is a rare degenerative disorder that causes progressive muscle weakness. It can lead to death by disabling heart and skeletal muscles. Amicus said Phase 3 results for its AT-GAA treatment didn’t produce statistical significance in a primary endpoint.
To be sure, some analysts said the Food and Drug Administration may approve AT-GAA based on statistical significance in a secondary endpoint, Bloomberg reported.
In any case, Amicus recently traded at $12.64, down 32.52%. That left it down 14% for the past six months.
As for the analysts, SVB Leerink’s Joseph Schwartz cut his rating on the stock to market perform from outperform and slashed his price target to $15 from $30.
“The approvability of the drug comes into question, although management remains encouraged about their regulatory path forward for their crown jewel AT-GAA program and will still file for approval,” he wrote.
Cantor analyst Kristen Kluska dropped her rating to neutral from overweight and her price target to $17 from $30. “We believe AT-GAA could still see an approval this year, but have less conviction on this potential,” she wrote. “We expect the stock to be down 20-30% on the [endpoint] miss.”
Cowen left its rating at outperform but cut its price target to $29 from $31. “We think Pompe key opinion leaders and patients will see the totality of the data in a positive light and see a path to US and EU approval,” it said.