Amicus Therapeutics Downgraded at Chardan on Concern Company No Longer a Takeover Target

Amicus Therapeutics (FOLD) was downgraded at Chardan on concerns that the company isn’t attractive even after a key drug received approval from the government.

The US Food and Drug Administration on Aug. 10 approved Galafold to treat Fabry disease following a recently successful launch in Japan and “relatively strong” adoption globally.

“Despite these positives, some of our Amicus thesis relied on our long-held expectation of Amicus potentially being acquired for Galafold, which has not occurred,” Chardan said.

Shares were down 4.2% in early trading Friday.

The company has been in discussion with regulators in Europe and the US on pathways to approve AT-GAA, but it’s unlikely the company will see any upside from the drug in at least the next six months.

“Instead, we believe the arbiter for performance for Amicus from here through end 2018 will be on how the company executes on its reiterated commitment ‘to build one of the most robust gene therapy pipelines in the field of rare, metabolic disorders’ by `assembling a portfolio of technologies, programs and partnerships in the gene therapy space,'” Chardan analysts said .”Without visibility on what Amicus plans to do, we prefer to wait on the sidelines and therefore downgrade from buy to neutral, maintaining a positive bias.”

The picture may become more clear on Oct. 10 when the company hosts its first analyst day in New York. In the past year, Chardan said, Amicus has done its due diligence on about 15 rare metabolic disorders and engaged with academic centers and private and public companies.

While no additional indications have been disclosed, the company has expressed its interest in treatments for Pompe and Fabry diseases.