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Monday, UBS analyst Colin Bristow increased the price target on Amgen stock (NASDAQ:AMGN) to $319 from $315 while maintaining a Neutral rating. The biotech giant, currently valued at approximately $157 billion, has shown robust performance at the start of the year. According to InvestingPro data, shares have gained about 10.6% year-to-date (YTD), despite recent macroeconomic concerns related to tariff impacts. The stock appears to be trading near its Fair Value, while maintaining its position as a prominent player in the biotechnology industry.
In the first quarter of 2025, Amgen’s financial performance is projected to be solid, with expectations for a strong profit and loss statement. The company, which generated $33.4 billion in revenue over the last twelve months with an impressive 68.7% gross profit margin, has indicated that products such as Enbrel, Otezla, and Tepezza are expected to follow typical reimbursement and insurance patterns. Operating margins are anticipated to be lighter in the first quarter and then increase subsequently. InvestingPro analysis indicates strong financial health with particularly high scores in profitability metrics. Amgen also plans to account for the impact of the Inflation Reduction Act (IRA) as each drug reaches catastrophic coverage, with higher-priced products feeling the effects earlier.
UBS’s estimates for Amgen’s first-quarter revenues and earnings are broadly in line with consensus, forecasting revenues at $8.11 billion compared to a consensus of $8.09 billion, and earnings per share at $4.30 versus a consensus of $4.25. However, there are potential concerns about the performance of Amgen’s bone franchise, which may be mitigated by the strength of its biosimilar franchise. The firm notes that Amgen’s key growth driver, Repatha, continues to see strong prescription growth, although there is competition from Novartis (SIX:NOVN)’ Leqvio.
The report also highlights that Amgen is expected to be less impacted by potential pharmaceutical tariffs, but emphasizes the importance of the company’s comments in the upcoming first-quarter earnings call, scheduled for May 1, 2025. Bristow mentions that while the consensus for Amgen’s yearly performance appears achievable, further clinical developments, such as the full data on MariTide expected at the American Diabetes Association meeting on June 23, are necessary before a more positive stance can be taken. The analyst also refers to impressive MINT data that has not received sufficient attention and provides a summary of Amgen’s manufacturing sites and reported tax compositions based on the company’s filings.InvestingPro subscribers have access to additional insights, including 8 more ProTips about Amgen’s financial strength and market position. The platform’s comprehensive Pro Research Report offers detailed analysis of Amgen’s performance metrics, competitive position, and growth prospects, available exclusively to subscribers.
In other recent news, Amgen announced that its Phase 3 DeLLphi-304 clinical trial for IMDELLTRA in small cell lung cancer (SCLC) patients met its primary endpoint, showing a statistically significant improvement in overall survival compared to standard chemotherapy. The trial results support IMDELLTRA as a potential standard of care for patients with SCLC who have progressed after platinum-based chemotherapy. Additionally, Amgen received FDA approval for Uplizna as the first treatment for IgG4-related disease (IgG4-RD), a chronic inflammatory condition. This approval was based on the MITIGATE trial, which demonstrated an 87% reduction in disease flares risk compared to placebo. Analysts at Piper Sandler maintained an Overweight rating on Amgen, with a $329 price target, citing Uplizna’s approval as a new revenue stream. Meanwhile, Citi analysts maintained a Neutral rating with a $295 price target, acknowledging the potential revenue growth from Uplizna. Uplizna’s approval marks its second indication, following its approval for neuromyelitis optica spectrum disorder in 2020. These developments highlight Amgen’s ongoing efforts in expanding its treatment offerings and addressing unmet medical needs.
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