On Wednesday, Goldman Sachs reaffirmed its Buy rating and $370.00 price target for Amgen (NASDAQ:AMGN) shares. The firm's analyst, Salveen Richter, provided insights into the recent decline in Amgen's stock value, which has fallen approximately 24% from its 52-week high following Phase 2 trial data for the obesity treatment, MariTide.
The data released in November was challenging to interpret, causing investor concern. However, Richter believes that the current stock price, which is trading below the value of Amgen's base business and net debt, presents an attractive buying opportunity.
The analyst addressed key investor debates, including the distinctiveness of MariTide's profile. Further clarity is anticipated from multiple updates in 2025, such as the full Phase 2 obesity study results, potentially presented at the American Diabetes Association meeting from June 20-23, and initial Phase 2 diabetes and obesity maintenance data in the fourth quarter of 2025.
Goldman Sachs also anticipates Phase 3 cardiovascular outcomes data for a competing drug, pelacarsen, to provide read-through for Amgen's similar treatment, olpasiran.
Richter pointed out that the lack of value-driving catalysts for Amgen in 2025 is a concern for investors. However, in addition to the upcoming MariTide updates, other significant developments are expected. These include the Phase 3 data for pelacarsen, which may have implications for Amgen's olpasiran program, and other potential advancements within the company's pipeline.
The analyst also mentioned expectations for Amgen's fiscal year 2025 guidance to alleviate concerns over near-term operating margins. Additionally, Amgen is projected to return to pre-Horizon Therapeutics debt levels by the end of 2025, which could allow for more business development opportunities. The firm's analysis includes a detailed look at Amgen's pipeline and loss of exclusivity (LOE) impact on its portfolio.
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