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Amgen shares hold as FDA approves Imdelltra ahead of schedule

EditorBrando Bricchi
Published 05/17/2024, 02:59 PM
AMGN
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On Friday, Amgen Inc . (NASDAQ:AMGN) maintained its positive outlook from analysts at Oppenheimer, with a reiterated Outperform rating and a steady price target of $380.00. The optimism follows the U.S. Food and Drug Administration's (FDA) accelerated approval of Imdelltra (tarlatamab), a significant milestone for the treatment of small cell lung cancer (SCLC). Imdelltra stands out as the first bispecific T cell engager approved for SCLC and marks a major advancement in the treatment of solid tumors, a decade after the approval of Blincyto.

The FDA's decision came approximately one month prior to the anticipated Prescription Drug User Fee Act (PDUFA) date, highlighting the therapy's potential impact. Amgen has set the price for Imdelltra at $31,500 for the initial treatment cycle and $30,000 for subsequent infusions. The drug is expected to be commercially available within the next few weeks.

Analysts project that despite the presence of a competitive pipeline, Imdelltra could achieve peak sales exceeding $2 billion. The early approval and favorable labeling of Imdelltra are seen as positive indicators for its commercial success.

Looking ahead, Amgen is preparing to host an investor event on May 20, 2024, where further details on Imdelltra and Tezspire data for the treatment of Chronic Obstructive Pulmonary Disease (COPD) will be discussed at the American Thoracic Society (ATS) meeting. This event is anticipated to provide investors with deeper insights into the company's portfolio and the potential of its latest FDA-approved therapy.

InvestingPro Insights

With Amgen Inc. (NASDAQ:AMGN) receiving a vote of confidence from analysts at Oppenheimer, it's worth noting that the company has a strong track record of rewarding investors, having raised its dividend for 14 consecutive years. This consistent increase in dividends is a testament to Amgen's financial health and commitment to shareholder returns. Moreover, the company is trading at a high earnings multiple with a P/E ratio of 36.83, reflecting investor confidence in its future growth prospects despite a market that is often cautious with high valuations.

InvestingPro Data shows that Amgen has experienced a robust revenue growth of 12.76% over the last twelve months as of Q1 2024, with a notable quarterly increase of 21.98% in Q1 2024. This growth trajectory is complemented by a solid gross profit margin of 66.49%, indicating the company's efficiency in managing its cost of goods sold and maximizing profit from its revenues.

For those looking to delve deeper into Amgen's financials and future outlook, there are additional InvestingPro Tips available, including insights into the company's valuation multiples and stock performance. With the use of the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, accessing a wealth of information to inform their investment decisions. There are 9 additional InvestingPro Tips listed for Amgen, providing a comprehensive analysis of the company's market position and financial health.

Investors may visit https://www.investing.com/pro/AMGN for a detailed analysis and more InvestingPro Tips to better understand the potential of Amgen's recent FDA approval and its impact on the company's financials.

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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