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On Thursday, Citi analysts maintained a Neutral stance on Amgen stock (NASDAQ:AMGN) with a price target of $295.00. The announcement followed the U.S. Food and Drug Administration’s (FDA) approval of Amgen’s drug Uplizna for the treatment of IgG4-related disease (IgG4-RD). The biotech giant, with a market capitalization of $166.4 billion and impressive revenue growth of 18.6% over the last twelve months, continues to strengthen its position as a prominent player in the biotechnology sector. According to InvestingPro analysis, the stock is currently trading above its Fair Value. Uplizna, a CD-19 directed antibody acquired through Amgen’s Horizon purchase, was previously approved for neuromyelitis optica spectrum disorder (NMOSD).
The FDA’s approval was based on the phase 3 MITIGATE study, which showed statistically significant reductions in flare risk and annualized flare rate compared to placebo. Additionally, the study demonstrated statistically significant improvements in treatment-free complete remission and flare-free, glucocorticoid-free complete remission. This new indication for Uplizna is expected to contribute to the drug’s revenue growth, with Bloomberg consensus 2025 estimates projecting $516 million in sales. The company’s strong financial health, rated as GOOD by InvestingPro, supports its continued investment in drug development and commercialization.
Uplizna now stands as the sole FDA-approved treatment for IgG4-RD. The drug’s efficacy will be further examined with the upcoming 52-week data from the phase 3 MINT trial for generalized myasthenia gravis, potentially broadening its application across a range of rare diseases.
Despite the positive news on Uplizna, Citi analysts believe that the forthcoming phase 2 data presentation for Amgen’s MariTide at the American Diabetes Association (ADA) meeting from June 5 to June 8 may have a more significant impact on Amgen’s stock in the near to mid-term. The analysts reiterated their Neutral rating and $295 price target for Amgen stock, reflecting their expectations for the company’s performance. Trading at a P/E ratio of 40.7 and with eight analysts recently revising earnings estimates downward, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports.
In other recent news, Amgen has received FDA approval for its drug UPLIZNA as the first treatment for Immunoglobulin G4-related disease (IgG4-RD). The approval is based on the MITIGATE trial, which showed an 87% reduction in the risk of disease flares compared to placebo. This marks the second indication for UPLIZNA, which was previously approved for neuromyelitis optica spectrum disorder. Citi analyst Geoff Meacham maintained a Neutral rating on Amgen, noting that the approval is likely to contribute to incremental growth in UPLIZNA revenues. Piper Sandler has reiterated an Overweight rating with a $329 price target, citing significant volume growth for Amgen’s key products, Repatha and Tezspire. Fitch Ratings revised Amgen’s outlook to positive, highlighting expected debt reduction and revenue growth from new products. The agency affirmed Amgen’s Long-Term Issuer Default Rating at ’BBB’, anticipating improvements in financial metrics over the next 12-24 months. Despite challenges, Amgen’s diverse portfolio and innovative pipeline are expected to support its financial performance.
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