AMLX - Amylyx Pharmaceuticals: Q4 Earnings Insight And PHOENIX Trial Implications

2024-02-23 17:05:41 ET

Summary

• Amylyx Pharmaceuticals' stock has rebounded by 50% since a rating downgrade in November, reflecting investor relief after Q4 earnings were in line with expectations.
• The company provided an earlier timeline for Phase 3 PHOENIX trial data, which will impact the market prospects of its ALS drug, Relyvrio.
• Positive PHOENIX trial data could boost Amylyx's stock by 200%, while negative data could send it down by at least 50%.

Investors Breathe a Sigh of Relief Post-Earnings, Look Forward to PHOENIX Data

Amylyx Pharmaceuticals ( AMLX ) has bounced back recently. Its stock is 50% higher since my rating downgrade (from "Strong Buy" to "Buy") in November. The rating downgrade reflected increasing caution due to operational challenges, yet it still acknowledged the apparent undervaluation. After disappointing Q3 earnings, which revealed slower uptake of their ALS drug, Relyvrio, due to higher-than-expected patient discontinuations, investors had low expectations going into Q4 earnings....

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