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On Monday, Piper Sandler, a financial services firm, maintained its Overweight rating on Amgen stock (NASDAQ:AMGN), with a price target set at $329.00. The biotechnology giant, currently trading at $289.82, has demonstrated strong financial health with an "GOOD" rating according to InvestingPro analysis, though the stock appears slightly overvalued based on Fair Value calculations. The affirmation of the stock’s rating and target follows a recent investor event in Boston, where a leading endocrinologist discussed the potential of Amgen’s new drug, MariTide.
The luncheon, attended by investors and featuring a prominent endocrinologist who manages a large obesity practice, provided insights into the evolving treatment landscape for obesity. Despite the growing number of oral medications, such as Lilly’s GLP-1 agonist orforglipron, the endocrinologist highlighted a definitive role for MariTide in clinical practice. As a prominent player in the biotechnology industry, Amgen has shown impressive revenue growth of 18.6% over the last twelve months, with total revenue reaching $33.4 billion.
Piper Sandler’s analyst noted that while broader investor expectations for MariTide have been relatively subdued since the presentation of top-line Phase II data in December 2024, there remains a positive outlook for the drug’s role in obesity management. Concerns about the drug’s tolerability, particularly its nausea/vomiting profile, have kept investor sentiment cautious.
The analyst’s commentary suggests that despite these concerns, there is confidence in MariTide’s potential. The reiteration of the Overweight rating and the $329 price target reflects Piper Sandler’s ongoing belief in the drug’s value proposition and its place in the market.
Amgen, a biotechnology firm known for its innovative therapies, continues to focus on the development of MariTide. The drug’s progress and its reception within the medical community are likely to be closely watched by investors as they gauge its impact on Amgen’s growth and its position in the competitive obesity treatment market. The company maintains a strong shareholder focus with a 3.3% dividend yield and has raised its dividend for 14 consecutive years. For deeper insights into Amgen’s financial health and growth prospects, including 8 additional exclusive ProTips, check out the comprehensive research available on InvestingPro.
In other recent news, Amgen has reported significant developments that are capturing the attention of investors. The company announced that its Phase 3 DeLLphi-304 clinical trial for IMDELLTRA (tarlatamab-dlle) in small cell lung cancer (SCLC) patients has met its primary endpoint, showing a statistically significant improvement in overall survival compared to standard chemotherapy. This advancement is part of Amgen’s broader tarlatamab development program and is expected to be presented at an upcoming medical congress. Additionally, Amgen received FDA approval for Uplizna, marking it as the first drug approved for IgG4-related disease (IgG4-RD), and is anticipated to contribute to the company’s revenue growth, with 2025 sales estimates at $516 million.
Analyst opinions have varied, with UBS raising Amgen’s price target to $319 while maintaining a Neutral rating, and Piper Sandler maintaining an Overweight rating with a $329 target, citing the potential for stable revenue and EBITDA. Citi analysts also maintained a Neutral rating with a $295 target, emphasizing the significance of the Uplizna approval and its expected impact on revenue. The FDA approval of Uplizna has positioned it as the sole treatment for IgG4-RD, with potential label expansion for other conditions, which could further enhance Amgen’s market presence.
Amgen’s first-quarter revenue and earnings projections are aligned with consensus estimates, with UBS forecasting revenues at $8.11 billion and earnings per share at $4.30. The company’s key growth driver, Repatha, continues to perform well, though it faces competition from Novartis (SIX:NOVN)’ Leqvio. The recent FDA approvals and ongoing clinical trials underscore Amgen’s strategic advancements in its product offerings, contributing to its growth prospects in the biotechnology sector.
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