Amgen stock gains as William Blair reiterates Outperform on positive cancer trial

Published 30/06/2025, 16:32
Amgen stock gains as William Blair reiterates Outperform on positive cancer trial

Investing.com - Amgen (NASDAQ:AMGN), a prominent player in the biotechnology industry with a market capitalization of $150 billion, announced positive top-line results from its Phase III FORTITUDE-101 study evaluating bemarituzumab in combination with chemotherapy for first-line gastric cancer treatment on Monday, June 30. InvestingPro data shows the company generated $34.1 billion in revenue over the last twelve months, demonstrating its significant market presence.

The trial studied patients with advanced or metastatic gastric or gastroesophageal junction HER2-negative cancers showing FGFR2b overexpression, comparing bemarituzumab plus mFOLFOX6 chemotherapy against mFOLFOX6 alone. While specific efficacy and safety results were not disclosed, Amgen plans to present detailed data at a future medical conference.

William Blair reiterated an Outperform rating on Amgen following the announcement, noting that a second Phase III study (FORTITUDE-102) evaluating bemarituzumab plus chemotherapy and Opdivo in first-line gastric cancer will report results in the second half of this year. According to InvestingPro, analysts have set price targets ranging from $185 to $400, reflecting diverse views on the company’s potential. The stock currently appears undervalued based on InvestingPro’s Fair Value analysis.

The research firm highlighted that ocular adverse event rates and related discontinuation rates will be important data points to evaluate the potential market opportunity for bemarituzumab.

William Blair also expressed optimism about Amgen’s broader portfolio, citing revenue upside potential from key assets including Repatha, Imdelltra, and Uplizna, while success with late-stage pipeline assets like rocatinlimab, bemarituzumab, and dazodalibep could support the company’s longer-term growth profile. This optimism is supported by Amgen’s strong financial health, with InvestingPro reporting $15.7 billion in EBITDA and a 69% gross profit margin. The company has also maintained dividend payments for 15 consecutive years, demonstrating consistent shareholder returns. For deeper insights into Amgen’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Amgen announced that its Phase 3 FORTITUDE-101 clinical trial for the gastric cancer drug bemarituzumab met its primary endpoint, showing a significant improvement in overall survival for patients with specific cancer types. The trial, which involved 547 patients across 37 countries, demonstrated the drug’s potential efficacy in treating gastric cancer, a leading cause of cancer-related deaths worldwide. Meanwhile, Amgen’s experimental obesity treatment, MariTide, showed promising results in a Phase 2 study, with participants experiencing up to 20% weight loss without reaching a plateau. The study also reported improvements in cardiometabolic measures such as waist circumference and blood pressure, with no new safety concerns identified. Amgen is moving forward with its Phase 3 MARITIME program to further evaluate MariTide’s safety and efficacy. Additionally, during its Annual Meeting, Amgen shareholders approved executive compensation and the election of 12 directors, while Ernst & Young LLP was ratified as the company’s independent accountants for 2025. In a related industry update, Jefferies downgraded Vigil Neuroscience’s stock rating from Buy to Hold, with a new price target of $8, due to the anticipated acquisition by Sanofi (NASDAQ:SNY). This acquisition is expected to conclude in the third quarter of 2025 and includes the return of VGL101, a TREM2 antibody, to Amgen.

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