On Tuesday, Piper Sandler confirmed its positive stance on Amgen (NASDAQ:AMGN) stock, maintaining an Overweight rating and a price target of $329.00. The endorsement follows the release of February 2025 prescription data from third-party provider IQVIA, which revealed significant volume growth for several of Amgen’s key products, including Repatha and Tezspire. The biotech giant, currently valued at $168.89 billion, has seen its stock surge over 21% year-to-date, and according to InvestingPro analysis, the stock appears slightly undervalued at its current price of $314.38.
The latest prescription data indicates that Repatha, a prominent drug in Amgen’s commercial lineup, experienced a roughly 36% increase in total prescriptions in the first two months of 2025 compared to the same period in 2024. This growth builds on the previous year’s momentum, where total prescriptions for Repatha surged by approximately 49% compared to 2023.
Piper Sandler’s analysis also notes that Amgen reported a 44% increase in U.S. sales for Repatha in 2024 over the prior year, despite a decline in average net realized pricing by about 10% for the year. The continued volume growth for Repatha is seen as a positive sign for Amgen’s performance.
Tezspire, another key drug in Amgen’s portfolio, also showed brisk volume growth, according to the February data. The sustained increase in prescription volumes for these drugs supports Piper Sandler’s reiteration of its Overweight rating and $329 price target for Amgen stock.
The analyst’s commentary highlighted the importance of prescription trends as an indicator of a pharmaceutical company’s commercial success. With the observed aggressive volume growth for Amgen’s products, the firm’s outlook on the stock remains optimistic.
In other recent news, Amgen has reported a 19% year-on-year increase in product sales for 2024, driven by a diverse portfolio and ten products achieving double-digit growth. Fitch Ratings has revised Amgen’s outlook to positive from stable, affirming its Long-Term Issuer Default Rating at ’BBB’. This revision reflects expectations of increased revenues from new products and debt reduction efforts. Amgen is on track to repay over $10 billion of debt by 2025, aiming to meet Fitch’s positive rating sensitivity by year-end 2025. The company also announced positive results from the Phase 3 MINT trial of UPLIZNA® in patients with generalized myasthenia gravis, demonstrating sustained efficacy.
Additionally, Amgen is contesting IRS adjustments related to its taxable income for 2010-2015, with the IRS seeking additional taxes totaling approximately $8.7 billion. In a separate development, TD Cowen maintained its Buy rating for Amgen, with a price target of $389, following positive clinical trial results for its atopic dermatitis treatment, ROCA. The treatment showed an improved safety profile and efficacy, which could expand the market beyond current treatments. Lastly, a U.S. court decision denied Regeneron (NASDAQ:REGN)’s request for a stay on biosimilar versions of Eylea, potentially benefiting Amgen’s biosimilar offerings in the market.
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