SVB Leerink lowered its price target for Adamas Pharmaceuticals (NASDAQ:ADMS) to $6 from $13, saying the mixed Phase 3 INROADS data are not good enough. In afternoon trading on Dec. 17, the stock was quoted at $4.15, down $3.15, or 43% in heavier than normal turnover.
“Adamas announced the results of the Gocovri Phase 3 INROADS multiple sclerosis (MS) walking study which in totality were disappointing because the magnitude of clinical benefit was not enough to give the company confidence to move definitely forward,” writes analyst Marc Goodman.
He removed the MS walking indication completely from his model, with the remaining value in his price target representing the existing opportunity for Gocovri in Parkinson’s disease (PD).
“We thought the MS walking indication had a good chance of working, and the frustrating part is that it did hit the primary endpoint, but the company has cash burn constraints, and the new management team still needs to show it can execute successfully on the key base business of PD with Gocovri, so the data really
needs to be more definitive,” Mr. Goodman added.
