Is Amicus Therapeutics (FOLD) Headed for a Breakout?

Amicus Therapeutics Inc. (FOLD) is a biotechnology company focused on discovering, developing, and delivering medicines for people living with rare metabolic diseases. It has a portfolio of opportunities, including oral precision medicine for people living with Fabry disease, a clinical-stage treatment paradigm for Pompe disease, and a rare disease gene therapy portfolio…

Amicus Therapeutics’s (FOLD) Galafold therapy received label expansion in the EU over the summer. This is expected to increase sales. Plus, its lead pipeline drug, AT-GAA, is being evaluated for Pompe disease. The FDA is expected to make a decision on AT-GAA some time next year. If approved, the drug has a lot of potential for growth.

FOLD has a current ratio of 4.3, indicating it has more than enough liquidity to handle short-term obligations. Over the past three years, sales have grown an average of 165.6% per year and revenues are expected to rise 37.2% over the next year leading to a Growth Grade of B in our POWR Ratings system.

However, the stock appears overvalued with a price-to-book ratio of 14.9. This is well above the industry average of 8.1 and the S&P 500’s 5.0. FOLD has been showing mixed performance since February, but has been trending up over the last few days. This is evident in the chart below.

Take a look at the 1-year chart of FOLD below with my added notations…

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