On Tuesday, Oppenheimer maintained its Outperform rating and $380.00 price target on Amgen (NASDAQ:AMGN), following the release of the MariTide Phase 2 study results. The study involved obesity or overweight patients with or without Type 2 diabetes (T2D). The results indicated approximately a 20% weight loss and an 11% adverse event-related discontinuation rate among non-diabetic participants.
The outcomes met the base case scenario projected by Oppenheimer, which anticipated a 20-25% weight loss with a mid-teen discontinuation rate. Despite meeting these expectations, the market anticipated a more significant weight loss, especially considering the promising Phase 1 results and the forthcoming CagriSema Phase 3 readout.
Oppenheimer expressed optimism regarding MariTide's performance in weight loss and glycemic control among patients with T2D. This aspect of the study is seen as a potentially significant and underappreciated opportunity for MariTide. Additionally, improvements were observed across various cardiometabolic parameters, which could enhance the drug's market potential.
The firm believes that the totality of the data from the MariTide study remains competitive, particularly when considering the convenience of once-monthly dosing. The efficacy profile of MariTide may also see further improvement with extended treatment duration and the possibility of dose escalation.
In other recent news, Viking Therapeutics (NASDAQ:VKTX) is pushing ahead with their subcutaneous drug VK2735, with BTIG analysts maintaining a $125 price target. The drug, aimed at addressing obesity, is seen as competitive following the release of Amgen's MariTide trial data. Meanwhile, Amgen's Q3 revenue has increased by 23%, hitting $8.5 billion. The company also appointed Howard Chang, M.D., Ph.D., as its new Senior Vice President of Research and Chief Scientific Officer.
Amgen's MariTide, under investigation for weight loss management, has drawn attention. Despite initial concerns about side effects, Piper Sandler and Morgan Stanley (NYSE:MS) have reaffirmed their Overweight and Equalweight ratings respectively. Citi has initiated coverage on Amgen with a neutral rating and a $335 price target, focusing on the potential impact of MariTide.
InvestingPro Insights
Amgen's recent MariTide Phase 2 study results align with its position as a prominent player in the Biotechnology industry, as highlighted by InvestingPro Tips. The company's market cap of $148.28 billion underscores its significant presence in the sector. Despite the market's mixed reaction to the study outcomes, Amgen's financial health remains robust, with a revenue of $32.53 billion over the last twelve months and a strong revenue growth of 21.25% during the same period.
InvestingPro Tips reveal that Amgen has raised its dividend for 14 consecutive years, demonstrating a commitment to shareholder returns. This is particularly noteworthy given the current dividend yield of 3.06%. However, investors should be aware that 17 analysts have revised their earnings downwards for the upcoming period, which may reflect some caution regarding the company's near-term prospects.
The stock is currently trading near its 52-week low, which could present an opportunity for investors who believe in the long-term potential of Amgen's pipeline, including MariTide. It's worth noting that Amgen's P/E ratio of 34.42 suggests it's trading at a high earnings multiple, indicating that the market may be pricing in future growth expectations.
For those interested in a deeper analysis, InvestingPro offers additional tips and insights that could provide a more comprehensive view of Amgen's investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.