Bullish options flow was detected in ADMS stock on December 17, 2019.

That is one heck of a ballsy trade folks. These are June 2020s with a $7.50 strike. Wow.

Earlier, Adamas Pharmaceuticals shares had been halted for news pending before the company announced results from INROADS, a 3-arm, randomized, double-blind, placebo-controlled study in 594 multiple sclerosis patients with walking impairment. The study met its primary endpoint as patients taking 274 mg ADS-5102 had a statistically significant improvement in response rate of 21.1% compared to 11.3% taking placebo. Shares of Adamas were down $2.12, or 29%, to $5.18 prior to the volatility halt.

Evercore ISI analyst Joshua Schimmer said he is “optimistic this marks the final of many mistakes” from the prior management of Adamas Pharmaceuticals after the company announced results from INROADS, a 3-arm, randomized, double-blind, placebo-controlled study in 594 multiple sclerosis patients with walking impairment. The company’s new team can execute on Gocovri with a clean slate and “lightly explore” other pipeline opportunities, contends Schimmer, who has an Outperform rating on Adamas shares. Adamas is down $3.23, or 44%, to $4.07 in morning trading.

While Adamas Pharmaceuticals’ Phase III trial of ADS-5102 for multiple sclerosis patients with walking impairment met the primary endpoint, the company noted the scale of clinical benefit was below expectations, William Blair analyst Tim Lugo tells investors in a research note. As a result, Adamas will not initiate the originally planned replicate second Phase III study and discuss a regulatory path forward with the FDA, the analyst adds. Lugo says that while decision to put the program on hold is disappointing, he’s not attributed any value for it in his model. With an enterprise value of roughly $100M and expectations that Gocovri will continue to gain market traction in Parkinson’s disease Levodopa-induced dyskinesia, shares of Adamas are undervalued, contends Lugo. He maintains an Outperform rating on the shares “despite an obviously weak recent performance.”

JMP Securities analyst Jason Butler noted that Adamas Pharmaceuticals’ phase 3 multiple sclerosis walking impairment trial of ADS-5102 met its primary endpoint but fell short of management’s threshold to quickly advance to a second pivotal study. The analyst, who remains confident in management’s ongoing efforts to optimize and reinvigorate Gocovri commercialization in levodopa-induced dyskinesia, reiterates his Outperform rating and $16 price target on Adamas, which does not include the MS walking indication.

finviz dynamic chart for  adms
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