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Adamas Pharmaceuticals Reports Another Quarter Of Respectable Growth


  • Adamas Pharmaceuticals recently reported a mixed earnings with a slight miss on EPS and a slight beat on revenue. I take a look at the company's earnings and commercial progress.
  • Despite the commercial progress, 2019 was a rough year for the company, and the share price took the brunt of it. I expect 2020 to be a different story.
  • I have been holding off on adding to my position, but the stock's strength during the market sell-off has provided me with enough confidence to start adding to my position.

2019 was a mottled year for Adamas Pharmaceuticals (ADMS) and its shareholders. The company's flagship product, GOCOVRI "ADS-5102", continues to reveal encouraging data in Parkinson's disease "PD" and has started to show some commercial traction. Unfortunately, the company left 2019 with a mixed topline result from the company's INROADS Phase III trial for GOCOVRI in multiple sclerosis "MS" patients with walking impairment. Despite the setback, Adamas has implemented a commercial strategy that is starting to show some impressive numbers in a hard-to-treat population. As a result, the company reported a slight beat on revenue and a slight miss on EPS. I am starting to regain a bullish outlook on the ticker and will be looking to add to my position during this sharp sell-off in the overall market.

I intend to review the company's Q4/2019 earnings and discuss the company's commercial success. In addition, I take a look at the Street's expectations for 2020 and how that will determine how I will manage my ADMS position over the course of the year.

Q4/2019 Numbers

Adamas recently reported their Q4 and 2019 earnings that revealed fourth-quarter 2019 product sales came in at $16.3M, which was a 17% increase over Q3 of 2019. For the full-year, GOCOVRI product sales were $54.6M, which was up from $34M in 2018. In terms of expenses, full-year R&D expenses were down to $30M, while full-year SG&A expenses were up to $114.4M. The cash burn for Q4 was stable at approximately $18M. The company finished 2019 with approximately $133M in cash and investments.

Overall, the company was able to record another quarter of revenue growth, while managing their OpEx and preserving their strong cash position.

GOCOVRI's Progress

After falling short of the Street's expectations, Adamas has regained my confidence their growth strategy for GOCOVRI is working and is

This article was written by

Biologics profile picture
Diagnosing the market to compound capital in the healthcare sector.

After years of working in the medical field, I have developed a passion for biotech and lifesaving therapies. Now, I am a full-time healthcare investor who is in search of the next breakthrough therapy, device, or pharmaceutical. My trade focus is around catalysts and potential acquisitions. In addition, I provide a marketplace service, Compounding Healthcare through Seeking Alpha.

Analyst’s Disclosure: I am/we are long ADMS. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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