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Why Is Amicus Therapeutics (FOLD) Up 8.1% Since Last Earnings Report?

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It has been about a month since the last earnings report for Amicus Therapeutics (FOLD - Free Report) . Shares have added about 8.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Amicus Therapeutics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Amicus Q1 Loss Wider Than Expected, Sales Up Y/Y

Amicus reported a loss of 25 cents per share in the first quarter of 2021, wider than the Zacks Consensus Estimate of a loss of 23 cents but narrower than the loss of 35 cents reported in the year-ago quarter.

Revenues of $66.4 million in the first quarter missed the Zacks Consensus Estimate of $72 million but increased from $60.5 million in the year-ago quarter. Revenues were entirely derived from sales of Galafold (migalastat), approved for Fabry disease.

Quarter in Detail

Revenues in the first quarter reflected increased patient demand, offset by the timing of orders in ex-U.S. geographies, reauthorizations in the United States and irregular ordering patterns due to COVID-19.  Global compliance and adherence rates continue to exceed 90%.

Amicus continues to expect the number of new patients starting on Galafold treatment in 2021 to be greater than that in 2020.

Operating expenses (adjusted basis) came in at $90.5 million, down from $116.7 million in the year-ago quarter.

As of Mar 31, 2021, the company had cash, cash equivalents and marketable securities of $417.4 million compared to $483.3 million on Dec 31, 2020.

2021 Guidance

For 2021, the company expects total Galafold revenues of $300-$315 million, driven by continued operational growth and commercial execution across all major markets, including the United States, the EU, the U.K. and Japan.

Other Updates

The lead pipeline candidate in Amicus’ portfolio is AT-GAA, being evaluated for Pompe disease. The company plans to complete the BLA submission in the second quarter of this year and anticipates additional regulatory submissions in the European Union and other geographies throughout 2021.

The company continues to follow the first 13 CLN6 patients and the 4 CLN3 patients in their respective phase I/II studies.



 

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month. The consensus estimate has shifted -5% due to these changes.

VGM Scores

At this time, Amicus Therapeutics has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Amicus Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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