Goldman Sachs Downgrades Amylyx Pharmaceuticals inc. (AMLX) to Neutral

Goldman Sachs analyst Corinne Jenkins downgraded Amylyx Pharmaceuticals inc. (NASDAQ: AMLX) from Buy to Neutral with a price target of $4.00 (from $40.00).

The analyst comments "This morning, AMLX reported that the Ph3 PHOENIX trial evaluating the use of Relyvrio in patients with amyotrophic lateral sclerosis (ALS) did not meet its primary or secondary endpoints (link). No significant difference was observed between patients treated with drug vs. placebo on the primary endpoint (ALSFRS-R total score, p=0.667), secondary endpoints, or in previously evaluated sub-populations, which reflects our previously outlined worst-case outcome. The stock is trading -85% intra-day (vs. XBI +2%), which is modestly below cash (~$5/share). AMLX plans to discuss the data and next steps with relevant stakeholders over the coming eight weeks to determine a go-forward strategy, including a likely withdrawal of the agent. Thus, AMLX will shift focus to the late-stage development of Relyvrio in Wolfram Syndrome and Progressive Supranuclear Palsy, and early-stage development of AMX0114 in ALS. We do not currently ascribe revenue to any of these programs, and note that de-risking catalysts for these indications (ex-WS, which is a very rare disease) may be more 12 months away. We look next to an interim read-out in PSP (timing TBD) as the next significant opportunity for value inflection for the company."

For an analyst ratings summary and ratings history on Amylyx Pharmaceuticals inc. click here. For more ratings news on Amylyx Pharmaceuticals inc. click here.

Shares of Amylyx Pharmaceuticals inc. closed at $18.97 yesterday.

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