Shares of Amylyx Pharmaceuticals took a significant dip of 28% on Thursday following the company’s disappointing third-quarter sales and earnings results, which fell short of Wall Street’s estimates. The stock, which had already declined by over 51% for the year, plummeted to $12.93 per share during pre-market trading.
During the period ending on September 30, Amylyx reported $102.7 million in revenue, a substantial increase from the $345,000 recorded in the same period a year ago. However, this figure fell short of analysts’ expectations of $113.7 million, as polled by FactSet.
On the positive side, Amylyx managed to turn a profit, reporting earnings of 30 cents per share compared to a loss of 92 cents per share from the previous year. Nevertheless, this still missed analysts’ expectations of a 44 cent per share profit.
The increase in revenue was mainly driven by sales of Relyvrio, Amylyx’s treatment for amyotrophic lateral sclerosis (ALS). The drug received regulatory approval in the United States in September 2022 and has limited approval in Canada. The company now intends to seek approval in Europe as soon as possible.
In order to support its growth and advancements, Amylyx increased its research-and-development expenses from $24.9 million to $30 million. This additional spending was attributed to the hiring of new employees and increased investment in clinical trials.
Overall, Amylyx Pharmaceuticals faces a challenging market response to its Q3 performance, but the company remains focused on its commitment to developing innovative treatments for ALS and extending their global reach.