Sep. 24 at 11:59 AM
Stifel reiterated
$SLNO at Buy-
$118 and said,
$ACAD announced ACP-101's ph3 trial in Prader-Willi failed.
In light of some of the noise around Vykat's safety,
$ACAD's readout (even as we think most were skeptical) had become a meaningful overhang for the stock.
The setup into these data, in the backdrop of headline risk, questions about potential near-term M&A, etc. we think collectively was a major driver for the pressure on the stock (vs. a complete/fundamental reset on peak sales).
As such, this should be a nice clearing event for the stock and allow shares to work again into 3Q EPS where, with a strong print (our expectation), we could see that momentum pre-short report return as the launch progresses (and they potentially expand into EU next year). And while there'll likely be lingering questions still (how durable is this? have safety concerns just not pulled through?), we remain bullish and believe Vykat is well-positioned for significant/sustained growth.
$RYTM $BIIB