Amicus Therapeutics, Inc.

Amicus Therapeutics, Inc. (NASDAQ: FOLD) is a biotechnology business that develops, manufactures, and distributes medicines for people with rare metabolic illnesses. The Company is working on a pipeline of medications for uncommon metabolic diseases, including a gene therapy portfolio of rare illnesses. It has a pharmaceutical portfolio that includes oral precision medicine for Fabry disease.

Key Highlights:

• Despite stellar topline performance, the company reported net losses of USD 250.5 million in FY21.
• The Company’s business could suffer considerably if it is unable to commercialise Galafold® successfully.
• Brexit's influence on its overseas activities could significantly impact the Company.
• The Company had recorded significant negative returns on equity of -24.4% in Q3 FY22 compared to the industry median of -7.3%, resulting in liquidity risk.
• The mounting concern over the Russian invasion of Ukraine can continue to weigh on the equity market.
• From a technical standpoint, the Stock is now trading below its critical support level of the 50 and 200-day SMAs along with death crossover, indicating a bearish trend.

Stock Recommendation

Based on the recurring losses, single product concentration, international activities, associated risks, and unfavourable technical indicators, we recommend an "Avoid" rating on the stock at the closing price of USD 8.25, down 2.71% as of February 25, 2022.

1-Year Technical Price Chart (as of February 25, 2022). Source: REFINITIV, Analysis by Kalkine Group

 *The reference data in this report has been partly sourced from REFINITIV