UPDATE: J.P. Morgan Downgrades Amicus Therapeutics On Cautious View of Migalastat Monotherapy

In a report published Thursday, J.P. Morgan analyst Anupam Rama downgraded Amicus Therapeutics

from an Overweight rating to a Neutral rating and removed it's target price. In the report, J.P. Morgan says "We are downgrading FOLD shares to Neutral from Overweight and removing our $5 December 2014 price target. As expected, based on the 3Q update last week, Amicus announced a number of clinical development, financing, and restructuring updates as well as the acquisition of privately held Callidus Biopharma. From a long-term perspective, we believe yesterday's updates are likely to play out as a net-positive for Amicus, particularly for the Pompe program. Indeed, we believe it is prudent for the company to move forward with Callidus' more potent ERT co-formulated with AT2220. However, while the Pompe program made solid strides in 2013, the next meaningful clinical update is now weighted to 2015. Additionally, Amicus has regained rights to migalastat from GSK globally. We believe migalastat is an active drug in Fabry disease as a monotherapy and, of note, the agent has multiple clinical updates in 2014. That said, data to date have been mixed for migalastat on the efficacy side, with just enough trends to show drug activity, and this heightens risk for the development program. Furthermore, there will be questions on GSK's more passive role in the program. Overall, we would characterize our view on migalastat monotherapy as cautiously optimistic. Given this, and limited clinical data/value creation catalysts from Amicus' other development programs in the near term, we are moving to a Neutral rating." Amicus closed on Wednesday at $2.12.