Baird Reaffirms Cautious Stance on Amgen Amid Market Developments
Baird Maintains Underperform Rating on Amgen Shares
Baird has decided to reiterate its underperform rating on shares of Amgen (NASDAQ: AMGN), keeping a stable price target set at $215.00. This evaluation comes in light of the latest clinical data emerging from Amgen's investigational therapies.
New Clinical Data Insights
The analysts at Baird expressed that the recent results from the rocatinlimab study focusing on atopic dermatitis (AD) were not as promising as expected. The therapy yielded a 24-week reduction in EASI-75, which measures disease severity, by approximately 19%. This outcome is not only considered modest, but it also does not compare favorably to existing treatments like Dupixent and Ebglyss, which have demonstrated superior results at the 16-week mark.
Concerns Over Side Effects
Further analysis by Baird raised alarms over the uncertain side effect profile concerning pyrexia with rocatinlimab. Although the data surrounding Uplizna in generalized myasthenia gravis (gMG) was perceived as more encouraging, indicating a potential for good market reception, the firm concluded it did not position Amgen strongly against other FcRN inhibitors.
Market Position and Future Implications
The report indicates that Uplizna’s anticipated performance in a post-FcRN inhibitor environment could be robust but may not deliver a substantial boost to Amgen's market standing. The sentiments from the report reflect a neutral stance regarding Amgen's stock since recent findings did not present any significant positive momentum.
Recent Company Developments
Meanwhile, Amgen has announced noteworthy advancements in its treatment pipeline. According to analyses from Truist Securities, positive Phase 3 updates for both Uplizna and rocatinlimab were reported. Truist has upheld a Buy rating on Amgen with a consistent price target of $320.00.
Regulatory Approvals and Market Challenges
An exciting milestone for Amgen includes the approval of TEPEZZA, a non-surgical and non-steroidal treatment for thyroid eye disease, in Japan, marking its first approval across Asia. Furthermore, Amgen's Otezla has received FDA approval as the inaugural oral treatment for moderate to severe plaque psoriasis in children and adolescents. This approval followed a successful Phase 3 trial that exhibited a considerable improvement in 33.1% of participants. Analysts from TD Cowen and Oppenheimer have responded positively, expressing confidence in another Amgen drug candidate, MariTide.
Impact of Price Negotiations
However, the recent move by Medicare to negotiate prices for a selection of 10 high-cost medications, which includes Amgen's Enbrel under the Biden administration's Inflation Reduction Act, may pose challenges to the company's financial stability. Such negotiations are likely to affect Amgen's revenue streams significantly.
Frequently Asked Questions
What is Baird's rating on Amgen shares?
Baird maintains an underperform rating on Amgen shares with a price target of $215.00.
How did Amgen's rocatinlimab perform in recent studies?
The rocatinlimab study showed a modest 19% reduction in EASI-75 over 24 weeks, which was underwhelming compared to existing treatments.
What regulatory approvals has Amgen recently achieved?
Amgen received approval for TEPEZZA in Japan and Otezla for children and adolescents with psoriasis.
How might Medicare's negotiations affect Amgen?
Medicare's negotiations on drug prices could potentially impact Amgen's financial health significantly by reducing revenue.
What is the market outlook for Amgen according to Truist?
Truist maintains a Buy rating on Amgen with a price target of $320.00, indicating confidence in the company's pipeline.
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