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Investing.com - BMO Capital has lowered its price target on Amgen (NASDAQ:AMGN) to $335.00 from $346.00 while maintaining an Outperform rating. The prominent biotechnology company, which has delivered 15.56% revenue growth over the last twelve months and maintains a GOOD financial health score according to InvestingPro, currently trades slightly below its Fair Value.
The firm cited a "mixed MariTide readout" at the American Diabetes Association (ADA) conference as a key factor in the adjustment, suggesting Amgen’s story now "flips commercial" with the next MariTide catalyst not expected until later this year.
BMO Capital noted strong year-over-year prescription trends for several Amgen products, including Evenity (+28%), Repatha (+35%), and Tezspire (+64%), with their updated estimates for these products now at $495 million, $684 million, and $374 million respectively.
The firm reduced its peak sales estimates for Amgen’s MariTide to $2.14 billion in adjusted worldwide peak sales across both Obesity and Type 2 Diabetes, down from $3.64 billion previously, following what it described as "disappointing data" presented at the ADA conference.
BMO Capital attributed its price target reduction to both the lower MariTide peak sales forecast and "a modest increase in near term OpEx estimates associated with the ramp of Amgen’s Phase 3 program."
In other recent news, Amgen announced positive results from its Phase III FORTITUDE-101 study, which evaluated bemarituzumab in combination with chemotherapy for gastric cancer treatment. The trial showed a significant improvement in overall survival for patients with advanced gastric or gastroesophageal junction cancer. Piper Sandler reiterated an Overweight rating on Amgen, citing the success of this cancer treatment as a positive development. William Blair also maintained an Outperform rating, highlighting the potential revenue growth from Amgen’s broader portfolio, including drugs like Repatha and Imdelltra.
Additionally, Amgen reported promising results from a Phase 2 study of its obesity treatment candidate, MariTide, which demonstrated up to 20% average weight loss in participants without Type 2 diabetes. The study also noted improvements in cardiometabolic measures, such as waist circumference and blood pressure. Despite this, the stock experienced a decline, possibly due to concerns about competition in the obesity drug market. Amgen plans to continue with Phase 3 studies for MariTide and other conditions in 2025. These developments reflect Amgen’s ongoing efforts in advancing its oncology and obesity treatment pipelines.
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