Why Amicus Therapeutics Is Poised to Plunge

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company Amicus Therapeutics (Nasdaq: FOLD  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Amicus and see what CAPS investors are saying about the stock right now.

Amicus facts

Headquarters (founded)

Cranbury, N.J. (2002)

Market Cap

$282.9 million

Industry

Biotechnology

Trailing-12-Month Revenue

$24.0 million

Management

Chairman/CEO John Crowley
CFO William Baird

Return on Equity (average, past 3 years)

(71.9%)

Cash/Debt

$106.2 million / $900,000

Competitors

Actelion
Genzyme
Shire (Nasdaq: SHPG  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 25% of the 80 members who have rated Amicus believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star zzlangerhans, tapped the stock's recent run as particularly unsustainable:

Amicus is showing another upward kick in advance of data from Study 011 of Amigal in Fabry's disease, with topline results likely to be released this month. Similar upward movements earlier this year have not been sustained. I've been dubious about Amicus since 2007, when the share price declined precipitously despite the company's claims of positive results from the phase II trial of Amigal. I've never seen a complete data set from that trial, and it's difficult to understand the company's sparse press releases from that study and the subsequent extension study. A second major failure with Gaucher's disease drug Plicera didn't do much to boost my long-term faith in the company. Amicus might well report positive results from Study 011, but I don't think that will guarantee any kind of sustained positive response in the stock.

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Read/Post Comments (4) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 03, 2012, at 1:18 PM, jcov1337 wrote:

    This is a joke...right?

  • Report this Comment On December 04, 2012, at 7:04 PM, MissipRoe wrote:

    LOL...Three count em three days ago Montley Fool posted an article absolutely praising Amicus...

    "Best of the best

    It's a tough choice as to which of this week's three humongous performers are the best. My hunch, though, is to go with Amicus. The stock could see tremendous movement if the phase 3 Fabry disease studies turn out well."

    http://www.fool.com/investing/general/2012/11/30/3-humongous...

    Now they're saying you shouldn't touch the stock...This site is such a joke it's laughable.

  • Report this Comment On December 05, 2012, at 9:28 PM, RandMcMoney wrote:

    Hmmm. Should I trust GlaxoSmithKline which has a HUGE stake in Amicus or some bozo named "zzlangerhans" and a guy whose got a degree from The University of Western?? and might as well have been printed on toilet paper.

    Ummmm, yeah I'll stick with Amicus & GSK, but thanks for this idiotic article.

  • Report this Comment On December 07, 2012, at 12:17 PM, kthor wrote:

    it's always good to have a bear and bull articles ... after all if you invest based on any article w/o doing your DD ... who will end up the idiot?

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