On Tuesday, Goldman Sachs reiterated its Neutral rating for Amicus Therapeutics (NASDAQ:FOLD) shares, maintaining a $14.00 price target. According to InvestingPro data, analyst targets for the stock range from $12 to $21, suggesting potential upside. The financial institution's analysis followed Amicus Therapeutics' fiscal year 2024 revenue report, which aligned with expectations.
InvestingPro analysis indicates the stock is currently trading below its Fair Value, presenting a potential opportunity for value investors. The company announced a total revenue of $528.5 million, marking a 32% increase year-over-year and meeting the higher end of their forecasted $519 million to $528 million range.
This impressive growth, supported by an exceptional gross profit margin of 90% as reported by InvestingPro, was primarily attributed to Galafold sales for Fabry disease, which reached $458 million, an 18% rise from the previous year and slightly above Goldman Sachs and consensus estimates of $457 million and $455 million, respectively.
Amicus Therapeutics also reported Pombiliti+Opfolda revenue for Pompe disease at $70.3 million, consistent with Goldman Sachs and consensus projections of $70.9 million and $70.7 million. Looking forward, Amicus expects its total revenue to exceed $1 billion by 2028, with estimates from Goldman Sachs at $1.3 billion. The company also anticipates Galafold sales to reach approximately $1 billion by 2037, bolstered by extended exclusivity following a settlement with Teva.
For the year 2025, Amicus has forecasted Galafold revenue to grow by 10%-15% at constant exchange rates, translating to $504 million to $527 million, compared to Goldman Sachs and consensus estimates of $520 million and $504 million. Pombiliti+Opfolda revenue is projected to increase by 65%-85%, equating to sales between $116 million and $130 million, which is below the Goldman Sachs and consensus expectations of $146 million and $135 million.
Despite the lower guidance for Pombiliti+Opfolda, Goldman Sachs sees potential for upward revisions due to several factors. Improved reimbursement dynamics in the U.S. have reduced the lag between prescription and infusion to about 30 days in the fourth quarter, down from the initial 60-95 days at launch. Additionally, competitive dynamics are favorable, with 40% of Nexviazyme-treated patients in the U.S. entering a time frame optimal for patient switches in 2025. The company is also expected to benefit from recent and anticipated approvals and reimbursement decisions outside the U.S.
Goldman Sachs anticipates continued commercial success for Amicus Therapeutics' assets, supported by effective operational expense management. With a strong current ratio of 3.15 and an overall "Good" financial health score from InvestingPro, Amicus Therapeutics projects a positive GAAP net income in the second half of 2025.
The company also highlighted that business development will be a key focus in the next 12-24 months, which Goldman Sachs views as a potential growth lever. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report for deeper analysis of Amicus Therapeutics' financial outlook.
In other recent news, Amicus Therapeutics has reported positive financial developments. The company announced an optimistic preliminary revenue outlook for 2024, with expectations to achieve positive GAAP net income in the second half of the year. Analysts from BofA commented on the growth of Galafold, Amicus's main revenue driver, and the potential for growth from P&O as they await future regulatory updates.
However, despite these positive indicators, Morgan Stanley (NYSE:MS) downgraded Amicus Therapeutics shares from Overweight to Equalweight, reflecting a cautious approach towards the company's long-term potential. This decision came even as Amicus reported a significant 37% year-over-year growth in its Q3 revenue, reaching $142 million, primarily driven by a 19% increase in global revenue from Galafold.
Further, Amicus Therapeutics has demonstrated effective management of its operational expenses, maintaining a non-GAAP profitability of $45 million for the first nine months. The company's future plans include expansion into new markets and a focus on strategic growth in various rare disease areas, with expectations to double sales by 2025. Lastly, an important development is the licensing agreement with Teva, which secures Galafold's U.S. market exclusivity until January 30, 2037.
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