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Amgen shares hold price target, buy rating on study results

EditorNatashya Angelica
Published 09/25/2024, 08:02 PM
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On Wednesday, TD Cowen maintained a positive outlook on Amgen Inc . (NASDAQ:AMGN) shares, reiterating a Buy rating alongside a steady price target of $381.00. The endorsement follows recent clinical trial results for Amgen's Uplizna in the treatment of myasthenia gravis (MG), a chronic autoimmune neuromuscular disorder.

The Phase 3 Uplizna gMG MINT study met its primary endpoint, although the treatment's efficacy was noted to be less than that of competing drug Vyvgart, with a difference of -1.9 on the MG-ADL scale at week 26. Despite this, features such as every-six-month dosing, effectiveness in MuSK antibody-positive patients, benefits in steroid tapering, and a good safety profile were highlighted as factors that could support its use in later lines of therapy within the substantial MG market.

Moreover, Amgen's Roca drug showed promising results in the Phase 3 HORIZON trial for atopic dermatitis (AD). While the efficacy of Roca may not match that of Dupixent (Dupi), its less frequent dosing schedule and durability were recognized as sufficient qualities to position it as a third option for the AD market.

The analyst from TD Cowen underscored these findings, suggesting that despite Uplizna's lower efficacy in comparison to a market competitor, its distinct advantages could still make it a valuable treatment option. For Roca, the drug's potential as an alternative treatment for atopic dermatitis was also affirmed, considering its dosing and long-term use benefits.

Investors are keeping an eye on Amgen's portfolio as the company continues to navigate the competitive landscape of treatments for chronic conditions. The current price target reflects confidence in Amgen's market positioning and the potential of its clinical pipeline.

In other recent news, biopharmaceutical company Amgen has reported mixed results from its recent clinical trials. The Phase 3 HORIZON study of rocatinlimab in atopic dermatitis showed a statistically significant EASI-75 response rate of 32.8% at 24 weeks, while Uplizna, used in treating myasthenia gravis, demonstrated a meaningful improvement. Analysts from BMO Capital and Piper Sandler maintained positive outlooks on Amgen shares, while Baird reaffirmed its underperform rating, citing underwhelming results from the rocatinlimab study.

Amgen also announced the approval of TEPEZZA, a non-surgical, non-steroidal treatment for thyroid eye disease, in Japan, marking its first approval in Asia. The FDA also approved Amgen's Otezla, the first oral medication for moderate to severe plaque psoriasis in children and adolescents. Truist Securities maintained a Buy rating on Amgen following these positive updates.

However, Medicare's decision to negotiate prices for 10 costly drugs, including Amgen's Enbrel, as part of the Biden administration's Inflation Reduction Act, could potentially impact Amgen's financial health. These are recent developments for Amgen, as reported by analysts from TD Cowen and Oppenheimer who maintained positive ratings on the company.


InvestingPro Insights


As Amgen Inc. (NASDAQ:AMGN) garners attention with its clinical advancements, real-time data from InvestingPro provides additional context for investors considering the company's market position. Amgen's dedication to shareholder returns is evident, as the company has raised its dividend for 13 consecutive years, showcasing a reliable commitment to its investors. Moreover, Amgen's stock is known for its low price volatility, which might appeal to investors seeking stability in their portfolio.

Amgen's market capitalization stands at a robust $177.73 billion, reflecting its significant presence in the biotechnology industry. The company's P/E ratio is currently at 56.83, indicating a premium valuation which could be attributed to its strong market position and consistent dividend payments.

Despite a high P/E ratio, Amgen has maintained a dividend yield of 2.72%, which could be attractive for income-focused investors. Additionally, the company has experienced a solid revenue growth of 16.37% over the last twelve months as of Q2 2024, signaling a positive trajectory in its financial performance.

For investors seeking further insights, there are additional InvestingPro Tips available, including analysis on earnings revisions, trading multiples, and profitability forecasts. The comprehensive suite of tips on InvestingPro, which includes more than 10 additional insights for Amgen, can guide investors in making more informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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