On Tuesday, Amylyx Pharmaceuticals (NASDAQ:AMLX) announced a common stock offering of 6 million shares. The company stated that it intends to grant the underwriters a 30-day option to buy up to an additional 900,000 shares. The news comes on the heels of the recently announced approval of Amylyx’s Relyvrio drug for the treatment of neurogenerative disease amyotrophic lateral sclerosis (ALS) by the U.S. Food and Drug Administration (FDA).
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Amylyx stock plunged 5% in Tuesday’s extended-trading session in reaction to the news. Shares have advanced 124.2% over the past six months. Amylyx went public in January this year.
As per Reuters, Amylyx has established the list price of Relyvrio ALS drug at nearly $158,000 per year in the U.S.
Is AMLX Stock a Buy?
Following the FDA approval, Citigroup analyst Neena Bitritto-Garg increased her price target for Amylyx stock to $50 from $48 and maintained a Buy rating. The analyst highlighted that Relyvrio’s pricing is below rival drug Edaravone’s price of $170,000. Garg opines that the pricing difference “should enable rapid payer discussions and garner goodwill from physicians/patient advocacy groups, driving rapid uptake in demand and sales recognition.”
Amylyx stock scores a Strong Buy consensus rating based on three Buys and one Hold. The average AMLX stock price target of $43.75 implies 40.4% upside potential from current levels.