Piper Sandler reiterates Overweight rating on Amgen stock after cancer drug success

Published 01/07/2025, 15:52
Piper Sandler reiterates Overweight rating on Amgen stock after cancer drug success

Investing.com - Piper Sandler has reiterated an Overweight rating and $328.00 price target on Amgen (NASDAQ:AMGN), a prominent $155 billion biotechnology company that InvestingPro analysis suggests is slightly undervalued, following positive clinical trial results for its cancer treatment bemarituzumab.

The biopharmaceutical company, which has delivered impressive 15.6% year-over-year revenue growth, announced successful top-line results from its FORTITUDE-101 Phase III study, showing that bemarituzumab plus chemotherapy achieved a statistically significant improvement in overall survival for patients with unresectable locally advanced or metastatic gastric or gastroesophageal junction cancer.

The FGFR2b-directed antibody represents another win for Amgen’s oncology franchise, though Piper Sandler noted some concerns regarding ocular adverse events observed in the trial.

The research firm balanced these concerns against the poor prognosis typically seen in this patient population, with Amgen previously indicating that FGFR2b is associated with shorter overall survival.

Piper Sandler views this positive data point, along with recent Imdelltra results presented on June 2, 2025, as evidence that Amgen’s oncology segment is well-positioned for substantial growth once the company fully absorbs the impact of Xgeva’s loss of exclusivity.

In other recent news, Amgen announced positive top-line results from its Phase III FORTITUDE-101 study, which evaluated bemarituzumab in combination with chemotherapy for gastric cancer treatment. The trial met its primary endpoint of overall survival, demonstrating a statistically significant improvement compared to chemotherapy alone. William Blair reiterated an Outperform rating for Amgen, highlighting the potential revenue upside from bemarituzumab and other key assets. The company also released full results from its Phase 2 study of MariTide, an obesity treatment candidate, which showed promising efficacy with up to 20% average weight loss in participants. Despite these positive results, the reaction was mixed due to competitive concerns in the obesity drug market. Additionally, Amgen shareholders approved executive compensation and ratified the company’s independent accountants at the recent Annual Meeting. All 12 nominees for director were elected to serve one-year terms. These developments reflect ongoing strategic efforts by Amgen to expand its portfolio and strengthen its market position.

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