On Wednesday, TD Cowen reaffirmed confidence in Amgen Inc . (NASDAQ:AMGN), maintaining its Buy rating and a price target of $383.00. The endorsement comes in light of promising data regarding Amgen's obesity treatment, MariTide.
The treatment has demonstrated comparable results to Zepbound, with approximately 18-20% weight loss in non-diabetic obese patients over a year. Additionally, in diabetic obese patients, MariTide has shown a slightly better outcome with around 17% weight loss, coupled with a significant reduction in HbA1c levels, a measure of blood sugar control.
The analyst highlighted the favorable tolerability profile of MariTide, noting less than 8% of patients discontinued due to gastrointestinal adverse events in the 420mg dose escalation arms. The findings from a Phase 1 pharmacokinetic study suggest that starting with lower doses of MariTide could reduce the incidence of nausea and vomiting, potentially lowering the discontinuation rates.
The report also touched upon the potential for MariTide's dosing schedule to stand out in the competitive obesity market. The possibility of quarterly or every three months dosing could offer a significant advantage over other treatments, providing a more convenient option for patients.
Amgen's focus on addressing obesity, a major health concern worldwide, is evident with the development of MariTide. The treatment's progress and the positive remarks from TD Cowen could signal a strong position for Amgen in the obesity therapeutics market. With the maintained price target, the firm indicates its belief in the continued potential of Amgen's stock.
In other recent news, Amgen's Q3 revenue has seen a significant increase of 23%, reaching $8.5 billion. Leerink Partners adjusted its price target for Amgen stock, lowering it from $352 to $305, while maintaining a Market Perform rating. This was due to a change in the firm's long-term earnings growth projection for Amgen, from an 8% to a 4% compound annual growth rate (CAGR) from 2025 to 2030, due to anticipated higher investment spending.
Despite positive Phase 2 results for Amgen's product MariTide, Leerink revised its 2031 worldwide sales forecast for MariTide, lowering the unadjusted estimate from $15 billion to $12 billion. Other firms like Piper Sandler and Morgan Stanley (NYSE:MS) have also reaffirmed their ratings on Amgen, focusing on the potential impact of MariTide.
Oppenheimer maintained its Outperform rating on Amgen, expressing optimism regarding MariTide's performance in weight loss and glycemic control among patients with Type 2 diabetes. Piper Sandler reaffirmed its Overweight rating on Amgen, citing the drug's potential to achieve weight loss more rapidly than its comparator, tirzepatide.
Morgan Stanley maintained an Equalweight rating on Amgen shares, with a price target of $22.00, following the announcement of Phase 2 trial results for MariTide. The firm projects worldwide unadjusted sales of MariTide to reach approximately $5.9 billion by 2033.
InvestingPro Insights
Amgen's strong position in the obesity therapeutics market, as highlighted by TD Cowen's analysis of MariTide, is further supported by recent InvestingPro data. The company's market capitalization stands at $151.15 billion, underscoring its significant presence in the biotechnology sector. Amgen's revenue growth of 21.25% over the last twelve months and a robust 23.18% quarterly growth indicate the company's expanding market share, potentially driven by innovations like MariTide.
InvestingPro Tips reveal that Amgen has raised its dividend for 14 consecutive years, demonstrating financial stability that could support ongoing research and development efforts. Additionally, the company's status as a prominent player in the biotechnology industry aligns with its pursuit of groundbreaking treatments like MariTide.
For investors interested in a deeper analysis, InvestingPro offers 10 additional tips that could provide further insights into Amgen's market position and financial health.
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