Summary
- Our analytical research validates the bearish argument for Amicus in the short term yet supports the bullish case in the long haul.
- Migalastat subpar sales in the EU (and its U.S. FDA rejection) give credence to the bear case.
- Promising prospects of the combinations of chaperone pharmacologic plus novel ERT lend support to bullish claims.
Based in Cranbury, New Jersey, Amicus Therapeutics (NASDAQ:FOLD), a biotechnology at the forefront of individualized medicine, is focusing on the development of a novel chaperone therapeutic - that either stabilizes a defective protein by itself or in combination with existing enzyme replacement therapies ("ERTs"). In the second half of 2015, the stock enjoyed substantial gains, followed by the tumultuous tumbling in share price due to the FDA rejection of its lead molecule, migalastat (Galafold).
Thereafter, the share price climbed steadily and rewarded investors with +55% appreciation. From our experience, either strong market optimism or pessimism tends to lead to financial calamity. That being said, we shall review both bullish and bearish claims pertaining to this investing thesis.
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