We are investigating Adamas Pharmaceuticals, Inc. (ADMS) (“Adamas” or the “Company”) for potential violations of the federal securities laws.
On March 4, 2019, during a conference call with investors, Adamas walked back its previous prescription growth estimates for its primary product, Gocovri, warned of a continued slow-down in Gocovri prescriptions, and refused to make further predictions about Gocovri’s ability to achieve a sizeable market share. On this news, Adamas’s stock price fell $3.99 per share, or 32.4%, to close at $8.16 per share on March 5, 2019. Then, on September 30, 2019, a Bank of America/Merrill Lynch analyst lowered its rating for Adamas stock to “Underperform,” noting “existing overhangs for ADMS: (1) Gocovri coverage: a number of national formularies exclude Gocovri. We expect reimbursement hurdles in [multiple sclerosis walking impairment] space especially with generic Ampyra launch.” On this news, Adamas’s stock price fell $1.55 per share, or 23.26%, to close at $5.12 per share on September 30, 2019.