Adamas Pharmaceuticals’ Stock Skyrockets After its Drug Gocovri Gain FDA Approval

Drug manufacturer and research company Adamas Pharmaceuticals (NASDAQ:$ADMS) saw its shares rise on Friday, August 25th. The rise can largely be attributed to the fact that the U.S. Food and Drug Administration (FDA) granted approval to one of Adamas’ drugs called Gocovri. Gocovri was developed to treat dyskinesia, a common side-effect from the treatments for Parkinson’s disease.

Dykinesia results in involuntary movements of the body. It is typically caused by the therapies used to treat Parkinson’s disease. Adamas’ Gocovri is one of the first drugs to specifically treat dykinesia. The drug comes in the form of a capsule and should be taken once a day. This is especially convenient for people with Parkinson’s because it is very likely that the patients also have to keep track of a number of other medications.

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But even with Gocovri having an upper-hand as one of the first drugs to treat dykinesia, doctors have previously prescribed generic amantadine – both an active ingredient in Gocovri and also an unofficial treatment for dykinesia – which is typically cheaper than a branded drug like Gocovri. Whether or not patients will opt for the cheaper generic amantadine treatment or the pricier but branded Gocovri is yet to be seen.

Still, the approval of Gocovri and its upcoming distribution is good news for Adamas. As of 3:19 PM EDT on Friday, August 25th, the company’s stock has increased by a whopping 43.15%. Adamas says that Gocovri will be made available some time during its fourth quarter – however a full sales launch will happen in January 2018. As such, it will be a few more quarters until investors can see what kind of effect of Gocovri’s sales has on Adamas.

Adamas is also currently testing the use of Gocovri for those who have multiple sclerosis and have trouble walking. Having trouble walking is a symptom of about 80% of those with multiple sclerosis. If these tests yield positive results, it could boost the sales of Gocovri significantly.

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