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Investing.com - UBS has raised its price target on Amgen (NASDAQ:AMGN) to $326.00 from $315.00 while maintaining a Neutral rating ahead of the company’s second-quarter 2025 results. With a market capitalization of $158.49 billion, Amgen stands as a prominent player in the biotechnology industry. According to InvestingPro analysis, the stock is currently trading slightly below its Fair Value.
The investment bank expects Amgen to post a small earnings beat, which would mark the third consecutive quarter of solid performance. This aligns with InvestingPro data showing 8 analysts revising their earnings estimates upward for the upcoming period. UBS highlights key growth drivers Repatha and Evenity, which are showing approximately 30% year-over-year TRx growth, contributing to the company’s impressive 15.56% revenue growth over the last twelve months.
Prolia and Xgeva prescriptions in the U.S. remain solid during the second quarter, with UBS noting that aggressive pricing from biosimilar competitors that have entered the U.S. market has not yet materialized. This development may alleviate concerns about potential weakness from biosimilar erosion that prevented a guidance raise in the first quarter.
The firm anticipates recovery for Tepezza and Krystexxa revenues, which experienced 8-10% negative inventory impacts in the first quarter. However, UBS cautions that consensus estimates could still be high, especially for Tepezza, which saw a 9% year-over-year volume decline in the first quarter aside from inventory drawbacks.
While script trends for biosimilars are strong, UBS notes that revenues for several key products are booked through distributor orders and may not directly correlate with prescription trends. The firm also points out that consensus still includes U.S. sales for Wezlana (bStelara), though the company has not provided revenue guidance for this product. Notably, Amgen maintains a strong financial position with a 3.23% dividend yield and has raised its dividend for 14 consecutive years. For more detailed insights and additional ProTips about Amgen’s performance, visit InvestingPro.
In other recent news, Amgen has reported significant developments in its clinical trials and product forecasts. The company announced positive results from its Phase 3 FORTITUDE-101 study, which evaluated bemarituzumab in combination with chemotherapy for gastric cancer. This trial showed a statistically significant improvement in overall survival for patients, although some ocular adverse events were noted. William Blair reiterated an Outperform rating, highlighting the potential market opportunity for bemarituzumab, while Piper Sandler maintained an Overweight rating due to the drug’s success.
Meanwhile, Amgen’s obesity treatment candidate, MariTide, demonstrated promising efficacy in its Phase 2 study, showing up to 20% weight loss in participants without Type 2 diabetes. However, BMO Capital lowered its price target for Amgen, citing a mixed MariTide readout at the American Diabetes Association conference and reducing its peak sales estimates for the drug. Despite strong year-over-year prescription trends for other products like Evenity, Repatha, and Tezspire, BMO Capital adjusted its price target due to concerns around MariTide and increased operational expenses. The company has initiated its Phase 3 MARITIME program to further evaluate MariTide’s efficacy and safety.
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