AMLX The Motley Fool
Sun, September 25, 2022 at 9:23 AM
AMLX Three Motley Fool contributors have joined this roundtable to scour the market for some exciting initial public offerings (IPOs) in the healthcare field. Alex Carchidi (Amylyx Pharmaceuticals): Amylyx is worth owning because there's a solid chance it'll soon commercialize the first treatment for amyotrophic lateral sclerosis (ALS) that prolongs survival time while also slowing the disease's progression. Its medicine, AMX0035, has been approved for sale in Canada since late July, and regulators at the U.S. Food and Drug Administration will weigh in on the company's application for commercialization on Sept. 29.This biotech is ready for blastoff
It's also in the final stages of preparing to launch the drug in the European Union, pending the green light from regulators, which could come in the first half of 2023.
Since its IPO in early January of this year, its shares are up by nearly 61.6%, and it'll likely rise even higher. Right now, its revenue is negligible, as there hasn't been an earnings report since the approval of its drug in Canada. But next year, analysts estimate on average that it'll bring in around $174 million if AMX0035 launches in the U.S. as planned, and that'll mean the company's top revenue growth rate should accelerate dramatically.
NASDAQ: AMLX
Amylyx Pharmaceuticals, Inc.
Today's Change
(+3.23%) $0.91
Current Price
$29.09
KEY DATA POINTS
Market Cap
$2B
Day's Range
$27.95 - $29.45
52wk Range
$6.51 - $33.41
Volume
515,343
Avg Vol
1,572,472
Gross Margin
-20475.44%
Dividend Yield
N/A
Furthermore, there aren't any other ALS medicines, so Amylyx will have free rein of the global market, and that could power shareholder returns for years. And, as it already has its foot in the door thanks to its approval in Canada, it isn't as risky as other biotech stocks, though it's still not exactly a great pick for investors with a low risk tolerance.
