Amicus Therapeutics stock upgraded to Overweight by Morgan Stanley on IP strength

Published 17/07/2025, 10:26
Amicus Therapeutics stock upgraded to Overweight by Morgan Stanley on IP strength

Investing.com - Morgan Stanley (NYSE:MS) has upgraded Amicus Therapeutics (NASDAQ:FOLD) from Equalweight to Overweight with a price target of $12.00, citing the company’s strong intellectual property position ahead of summary judgment with Aurobindo. The company, currently valued at $1.87 billion, demonstrates impressive financial health with a 90.6% gross profit margin and a healthy current ratio of 3.34.

The upgrade also reflects Morgan Stanley’s confidence in patients switching from Nexviazyme/Lumizyme to PomOp in the longer term. The firm noted that Amicus’s first-quarter 2025 miss was attributed to order timing and a higher UK Voluntary Scheme for Branded Medicines Pricing and Access rebate rate of 22%, compared to the anticipated 12-15%. Despite these challenges, InvestingPro data shows strong revenue growth of 28.25% over the last twelve months, suggesting robust underlying business performance.

Morgan Stanley’s estimates for second-quarter 2025 Galafold sales are $124.0 million, representing a 19.0% quarter-over-quarter increase, slightly below the consensus of $124.4 million. For PomOp sales, the firm projects $23.0 million, a 9.5% quarter-over-quarter increase, below the consensus estimate of $24.3 million.

The research firm has updated its model to include DMX-200 after Amicus licensed U.S. rights to commercialize Dimerix’s DMX-200 for the treatment of Focal Segmental Glomerulosclerosis (FSGS).

Amicus management has reiterated that they expect limited tariff impact in 2025 due to careful expense management, supply chain planning, and 2025 U.S. sales inventory already being within the United States.

In other recent news, Amicus Therapeutics reported first-quarter 2025 earnings that exceeded analyst expectations, with adjusted earnings per share reaching $0.03 compared to the anticipated -$0.02. However, the company’s revenue fell short of forecasts, coming in at $125.25 million against Wall Street’s estimate of $136.65 million. Despite this, total revenue grew 15% year-over-year, driven by a 6% increase in Galafold sales and a 92% rise in Pombiliti + Opfolda sales. Amicus has adjusted its 2025 total revenue growth guidance to 15-22% and lowered expectations for Pombiliti + Opfolda growth. The company also reiterated its goal of achieving GAAP profitability in the second half of 2025. Additionally, Amicus licensed U.S. commercial rights to Dimerix’s DMX-200, a treatment for a rare kidney disease. In another development, Japan’s Ministry of Health, Labour and Welfare approved Amicus Therapeutics’ treatment for late-onset Pompe disease. This approval adds Japan to the list of countries where the therapy is available, including the United States and the European Union.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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