On Tuesday, Oppenheimer maintained its positive stance on Amgen Inc . (NASDAQ:AMGN) stock, reiterating an Outperform rating and a $380.00 price target.
The affirmation follows recent updates on several of Amgen's oncology programs presented at key medical conferences, the European Society for Medical Oncology (ESMO) and the World Conference on Lung Cancer (WCLC).
The updates included promising developments in drugs such as AMG193, tarlatamab, xaluritamig, and sotorasib. Specifically, AMG193 has shown encouraging activity in treating non-small cell lung cancer (NSCLC) and pancreatic ductal adenocarcinoma (PDAC), coupled with a favorable tolerability profile at a dosage of 1200mg once daily. These results support the initiation of additional combination trials in these areas.
Furthermore, the firm highlighted the progress on xaluritamig, suggesting that the 1.5mg every two weeks regimen could be the optimal dose. This insight could potentially lead to the start of a pivotal program in the near future.
Finally, new data on tarlatamab, particularly in combination with checkpoint inhibitors (CPI) from the Phase 1b study, indicate potential in first-line (1L) treatment settings.
This development could provide Amgen with first-mover advantages over competing programs and modalities, potentially expanding the patient population for small cell lung cancer (SCLC) treatments.
The positive feedback from Oppenheimer reflects strong confidence in Amgen's oncology pipeline and its potential to impact the treatment landscape for various cancers. The reiterated price target of $380.00 remains unchanged, indicating the firm's continued optimism about Amgen's stock performance.
In other recent news, Amgen has seen significant developments. The FDA approved the company's Otezla, marking the first oral medication for moderate to severe plaque psoriasis in children and adolescents.
This followed a Phase 3 trial where 33.1% of patients showed significant improvement. Amgen is committed to ensuring affordable access to Otezla, expanding treatment options for young patients.
Amgen's drug candidate, MariTide, has received positive feedback from Key Opinion Leaders, indicating that a slower titration approach could address tolerability concerns.
TD (TSX:TD) Cowen maintained a Buy rating on Amgen's shares, reflecting confidence in MariTide's market potential and Amgen's ability to handle the drug's tolerability issues.
In a recent development, Medicare is set to negotiate prices for 10 costly drugs, including Amgen's Enbrel, as part of the Biden administration's Inflation Reduction Act. The move is expected to save the U.S. government $6 billion in the first year and could impact the financial health of Amgen.
Analyst opinions on Amgen's shares have varied. TD Cowen and RBC (TSX:RY) Capital raised their price targets for Amgen, maintaining positive ratings, while Wells Fargo (NYSE:WFC) downgraded Amgen's stock to Equal Weight. These differing views could potentially impact the company's future strategies.
InvestingPro Insights
Amgen Inc. (NASDAQ:AMGN) has been a topic of interest following Oppenheimer's reaffirmed positive outlook on the company's stock, backed by promising updates from its oncology programs. In light of this, InvestingPro provides valuable insights that could further inform investors about Amgen's financial health and market performance. According to InvestingPro data, Amgen boasts a substantial market capitalization of $180.14 billion, reflecting its significant presence in the biotechnology industry. The company's P/E ratio stands at 57.46, which may suggest a high valuation compared to earnings; however, it's important to note that Amgen has maintained consistent dividend payments for 14 consecutive years, underscoring its commitment to shareholder returns.
An InvestingPro Tip reveals that Amgen has experienced a large price uptick over the last six months, with a 25.39% six-month price total return, which aligns with the optimistic sentiment expressed by Oppenheimer. Another tip to consider is that despite 11 analysts revising their earnings estimates downwards for the upcoming period, the company's stock is trading near its 52-week high, currently at 96.66% of that level. This could indicate market confidence in the company's long-term prospects, especially considering its role as a prominent player in the biotechnology industry.
For investors seeking a deeper dive into Amgen's financials and performance metrics, InvestingPro offers additional tips to help make informed decisions. Visit https://www.investing.com/pro/AMGN to explore the full range of insights available.
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