Adamas Targets Parkinson's and MS

04/20/2017 2:50 am EST


Bret Jensen

Editor, Biotech Gems

Adamas Pharmaceuticals (ADMS) is a drug improvement company that develops chrono-synchronous therapies for patients affected by chronic neurological disorders, explains Bret Jensen, editor of Investor Alley's Growth Stock Advisor.

Specifically, the treatments are attempts to improve existing remedies by synching the release of the medication with disease activity without disrupting the brain’s master clock.

Since the company is looking to upgrade already approved therapeutics, the pathway to approval is generally much shorter versus a new, unproven therapy.

It is hoping to effectively transition to the commercialization stage with the approval of a first and only therapy for levodopa-induced dyskinesia (LID) associated with Parkinson’s disease.

Levodopa is the gold standard Parkinson’s disease therapy, as it replaces lost dopamine. Unfortunately, over time, 90% of patients on levodopa will develop LID, which is characterized by unpredictable involuntary movements. Approximately 150,000 to 200,000 Americans suffer from LID.

ADS-5102 (amantadine) has successfully met its primary endpoint in Phase 3 studies for the treatment of LID in patients with Parkinson’s disease. The drug is also being evaluated for multiple sclerosis (MS) in patients with walking impairment. Approximately 220,000 Americans suffer from this disorder.

Adamas ended 2016 fiscal year with just over $135 million in cash and no debt, which should be plenty to get it through commercialization of ADS-5012.

Eight analysts follow shares of the company, with one recommending purchase and the balance rating the shares as outperform. Twelve-month price targets range from $21 to $45 a share with the median at $29.00 a share, representing an over 60% return from current levels.

A five-star rated analyst from Mizuho Securities was the last to chime in on the company on March 15 when she reiterated her Buy rating and $28.00 a share price target as she believes the stock has further to climb into its likely FDA approval this summer for ADS-5012.

The stock has several significant purchases at just above these price levels late that summer by both beneficial owners and officers of the company. We recommend using any weakness below $19.00 as a buying opportunity.

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