Amylyx downgraded to Market Perform from Outperform at Leerink

Leerink downgraded Amylyx to Market Perform from Outperform with a price target of $4, down from $27. The top-line results from the PHOENIX study were “very disappointing,” so the firm is not surprised to see the stock move below cash given that investors are probably concerned that Amylyx will probably pull the drug from the market as well as continue to spend on other development projects that have minimal proof-of-concept. On the conference call management pointed to commitment to its programs in Wolfram Syndrome and Progressive Supranuclear Palsy, Leerink notes. Amylyx does have $370M in cash, and therefore has the ability to bring in another asset if it chooses, but at this point Leerink believes it makes sense to move to the sidelines.