Mid-cap biotech Amylyx jumps 60% after drug meets endpoints in late-stage trial
Amylyx Pharmaceuticals surged after its drug candidate, avexitide, met primary and secondary endpoints in a phase III clinical trial / Photo: Unsplash/Julia Koblitz
Shares of mid-cap biotech Amylyx Pharmaceuticals surged around 64% on the Nasdaq on Tuesday to mark a more than three-year high. The company reported that its experimental drug for post-bariatric hypoglycemia, which targets the GLP-1 receptor, met all clinical trial endpoints. This opens the way for a new therapy with no equivalents currently commercially available. Amylyx stock has surged 190% year to date, but Wall Street believes it still has room to add another 20%.
Details
Amylyx shares jumped around 64% on Tuesday to $35.10 apiece, their highest level since February 2023. In premarket trading on Wednesday, Amylyx had gained another 4% as of this writing.
In the final stage of clinical trials, its experimental GLP-1 drug avexitide met the endpoints agreed on with the FDA, Amylyx reported on Tuesday. The pharmaceutical company studied avexitide in patients with post-bariatric hypoglycemia, a rapid drop in blood glucose in patients following bariatric surgery. The condition can cause loss of consciousness, seizures, and, in some cases, disability, the company notes. Despite this, there are currently no FDA-approved treatments for the condition.
Following the release of the new clinical data, the biotech is “moving with urgency to submit an NDA to the FDA,” Chief Medical Officer Camille L. Bedrosian said in the company’s announcement. If the application is approved, the drug will go to market as early as 2027.
What analysts say
Amylyx shares have advanced more than 190% year to date, including Tuesday’s gain. Following the release of the new clinical data, two Wall Street analysts raised their target prices for the stock while maintaining their “buy” ratings, according to Yahoo Finance data. H.C. Wainwright lifted its TP around 62% to $55 per share, implying 57% upside, while Baird upped its TP around 86% to $52 per share, implying around 49% growth potential. Amylyx shares have 11 “buy” calls versus one “hold” rating. The average target price is $42.20 per share, 20% above the last close.
