WB ups Adamas Pharma price target to $42

Adamas Pharmaceuticals

William Blair has raised its price target on Adamas Pharmaceuticals (NASDAQ:ADMS) to $42 from $35 after the company announced positive top-line results from its Phase 3 EASE LID trial with lead candidate ADS-5102 (extended-release amantadine) to treat levodopa-induced dyskinesia (LID) associated with the gold standard of Parkinson’s disease therapy, levodopa.

Shares of Adamas were quoted at $25.95, up $9.09, or 54%, at midday on Wednesday.

“We believe that these results de-risk the company’s second Phase 3 trial, EASE LID 3, which is expected to read out in the first half of 2016, and strengthen the company’s potential NDA submission, which we anticipate in the second half of 2016,” writes analyst Tim Lugo.

“However, the primary endpoint of the continuing EASE LID 3 trial is efficacy at 12 weeks, and given Wednesday’s results, which showed efficacy at 12 and 24 weeks (N=121), management may be able to file earlier than our current timeline,” he added.

Mr. Lugo said the company showed a statistically significant 23% reduction in the primary endpoint, the reduction in LID over 12 weeks as assessed by the Unified Dyskinesia Rating Scale. In addition, the significant effect between treatment and placebo was maintained at 24 weeks. Four key secondary endpoints all achieved significance as well.

Mr. Lugo also said that Wednesday’s results clearly place Adamas ahead of private competitor, Osmotica, which is enrolling a Phase 3 program of its own formulation of extended release amantadine, Osmolex ER, and “with orphan exclusivity potentially blocking whichever company is second to market, the continued execution by Adamas will be heavily watched.”

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