Baird Keeps Underperform Rating on Amgen Shares
Baird has chosen to reaffirm its underperform rating on Amgen (NASDAQ: AMGN) shares, maintaining a price target of $215.00. This decision comes after analyzing the latest clinical data from Amgen's investigational treatments.
Insights from New Clinical Data
Baird's analysts noted that the recent findings from the rocatinlimab study on atopic dermatitis (AD) fell short of expectations. The therapy achieved a 24-week reduction in EASI-75—a measure of disease severity—by about 19%. While this result is seen as modest, it doesn't stack up well against current treatments like Dupixent and Ebglyss, which have shown better efficacy by the 16-week mark.
Concerns About Side Effects
Baird's further evaluation raised concerns about the uncertain side effect profile related to pyrexia associated with rocatinlimab. Although the data for Uplizna in generalized myasthenia gravis (gMG) appeared more positive, suggesting that it could be well-received in the market, the firm concluded that it does not position Amgen strongly compared to other FcRN inhibitors.
Market Position and Future Considerations
The report suggests that while Uplizna's expected performance in a post-FcRN inhibitor landscape could be solid, it likely won't significantly enhance Amgen's market position. The overall sentiment in the report indicates a neutral perspective on Amgen's stock, as the latest findings did not indicate any major positive developments.
Recent Developments at Amgen
In the meantime, Amgen has made notable progress in its treatment development pipeline. According to analyses from Truist Securities, positive updates from Phase 3 trials for both Uplizna and rocatinlimab have emerged. Truist continues to support a Buy rating for Amgen, holding steady with a price target of $320.00.
Regulatory Approvals and Market Challenges
One of the significant milestones for Amgen is the approval of TEPEZZA in Japan, marking its first approval in Asia for this non-surgical and non-steroidal treatment for thyroid eye disease. Additionally, Amgen's Otezla has received FDA approval as the first oral treatment for moderate to severe plaque psoriasis in children and adolescents. This approval came after a successful Phase 3 trial showing a substantial improvement in 33.1% of participants. Analysts from TD Cowen and Oppenheimer have responded favorably to another candidate in Amgen's pipeline, MariTide.
Effects of Price Negotiations
However, the recent initiative by Medicare to negotiate prices for a group of 10 high-cost medications, which includes Amgen's Enbrel under the Biden administration’s Inflation Reduction Act, may create challenges for the company’s financial outlook. These negotiations are likely to have a significant impact on Amgen's revenue streams.
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.
