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Baird keeps underperform rating on Amgen shares with no change in target price

EditorTanya Mishra
Published 09/25/2024, 07:18 AM
AMGN
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Baird has reaffirmed its underperform rating on shares of Amgen (NASDAQ: NASDAQ:AMGN), holding steady with a price target of $215.00.

The firm's assessment followed the release of new clinical data for Amgen's investigational therapies. Analysts at Baird found the latest results from the rocatinlimab study in atopic dermatitis (AD) to be underwhelming.

The treatment demonstrated a 24-week reduction in EASI-75 (a measure of disease severity) of approximately 19%, which was not only modest but also fell short when compared to existing treatments such as Dupixent and Ebglyss, which showed better disease control at 16 weeks.

Moreover, the analysts expressed concerns over the uncertain side effect profile related to pyrexia with rocatinlimab. While the data for Uplizna in generalized myasthenia gravis (gMG) appeared more promising, indicating potential for good market uptake, the firm did not view it as sufficiently competitive with FcRN inhibitors to be a game-changer for Amgen.

The report indicated that while Uplizna's performance in the post-FcRN inhibitor market could be solid, it might not be enough to significantly impact Amgen's market position. The firm's commentary suggested that the new data presented a neutral outcome for Amgen's stock, with no strong positive drivers emerging from the recent findings.

In other recent news, Amgen has reported significant progress in its treatment portfolio. The company shared positive Phase 3 updates for two major pipeline programs, Uplizna and rocatinlimab, according to Truist Securities.

Truist maintained a Buy rating on Amgen with a steady price target of $320.00. Furthermore, Amgen's TEPEZZA, a non-surgical, non-steroidal treatment for thyroid eye disease, has received approval in Japan, marking its first approval in Asia.

In addition, the FDA approved Amgen's Otezla, the first oral medication for moderate to severe plaque psoriasis in children and adolescents. This approval followed a Phase 3 trial that showed significant improvement in 33.1% of patients. Analysts from TD Cowen and Oppenheimer have maintained positive ratings on Amgen, reflecting confidence in the company's drug candidate, MariTide.

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.

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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