Amylyx Pharmaceuticals hit breakeven in its second quarter with a product on the market, an analyst noted Friday. But AMLX stock dipped.
On today's stock market, AMLX stock skidded 4% to 27.67. That reversed from a double-digit surge late Thursday after Amylyx reported an unexpected profit in the first quarter and blew past sales expectations for its amyotrophic lateral sclerosis drug, Relyvrio.
Relyvrio gained Food and Drug Administration approval in September. It also sells in Canada under the brand name Albrioza. Amyotrophic lateral sclerosis — also known as ALS or Lou Gehrig's disease — is a progressive neurodegenerative disease.
At the end of the first quarter there were 3,000 patients taking Relyvrio. The company hopes to reach 10,000 patients. Now, investors are watching for how demand will unfold for Relyvrio.
"Short answer: Too early to tell, but management noted the patient (additions) can't double forever, so we should expect less of a magnitude of patient (additions) in the second quarter," Evercore ISI analyst Michael DiFore said in a note to clients.
AMLX Stock: Sales Soar 22%
In the first quarter, Relyvrio generated $71.4 million in sales, crushing expectations for $59 million, according to FactSet. Sequentially, sales climbed 22%. Amylyx also put up a gain of 2 cents per share, whereas Wall Street projected a loss of 24 cents a share.
Now, AMLX stock analysts expect the company to be solidly profitable for the rest of the year.
DiFore has an outperform rating on AMLX stock.
"With 3,000 patients on therapy as of the end of the first quarter, Amylyx still sees significant demand and plenty of room for growth given that only 80 health care providers are major ALS centers wrote about 50% of the (prescriptions) during the quarter and that they are only starting to branch out into the broader neurology community," he said.
SVB Securities analyst Marc Goodman expects Relyvrio to reach 9,000 patients by 2027. He noted the company is also developing the same drug for other neurodegenerative conditions.
On Thursday, Amylyx said it plans to begin a final-phase study of Relyvrio in patients with progressive supranuclear palsy, a rare brain disorder than impacts walking, balance, eye movements and swallowing.
Goodman also has an outperform rating on AMLX stock.
AMLX stock has a strong Relative Strength Rating of 97, which puts its 12-month performance in the top 3% of all stocks, according to IBD Digital.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
