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BMO Capital maintains Outperform rating on Amgen shares

EditorTanya Mishra
Published 09/25/2024, 08:09 AM
AMGN
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BMO Capital has maintained a positive outlook on Amgen (NASDAQ: NASDAQ:AMGN) shares, reiterating an Outperform rating with a steady price target of $362.00.

The firm's analysis highlighted the mixed results from Amgen's recent clinical trials. Amgen's Phase 3 HORIZON study of rocatinlimab in atopic dermatitis showed a statistically significant EASI-75 response rate of 32.8% at 24 weeks.

While these results did not surpass those of similar agents like Ebglyss and Dupixent, the comparison is clouded due to uncertainties regarding the extent of patients' previous exposure to biologics.

Conversely, Amgen's Uplizna, used in treating myasthenia gravis, delivered more definitive positive results. The drug demonstrated a meaningful improvement, with a six-month dosing regimen showing a 4.2 point overall improvement, with a 1.9 point improvement over placebo, in the MG-ADL score, which assesses patients' daily living activities.

This performance is seen as competitive when compared to other treatments like ravulizumab, which requires dosing every eight weeks.

The analyst's comments reflect a nuanced view of Amgen's clinical developments. While the rocatinlimab trial's outcome may seem less impressive when compared to existing treatments, the lack of clarity on patients' prior treatments complicates direct comparisons. On the other hand, the Uplizna data presents a clearer success story, potentially offering a strong alternative within the myasthenia gravis treatment landscape.

Amgen's mixed clinical trial results come at a time when the biopharmaceutical industry is highly focused on innovation and the development of more effective treatments. The company's ability to produce a competitive drug in Uplizna could potentially strengthen its position in the market, while the rocatinlimab results may prompt further investigation into its efficacy relative to patient treatment history.

In other recent news, biotechnology company Amgen has seen significant developments in its portfolio of treatments. The company announced positive Phase 3 updates for two key pipeline programs, Uplizna and rocatinlimab.

Piper Sandler maintained an Overweight rating on Amgen with a price target of $344.00, reflecting confidence in the company's portfolio, particularly Uplizna's promise in expanded indications. However, Baird reaffirmed its underperform rating on Amgen shares, citing underwhelming results from the rocatinlimab study in atopic dermatitis.

Furthermore, Amgen's non-surgical, non-steroidal treatment for thyroid eye disease, TEPEZZA, has received approval 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 with a steady price target of $320.00, following the disclosure of these positive updates.

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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