Latest news with #AMGN
Yahoo
21-05-2025
- Business
- Yahoo
AMGN Down 10% in 3 Months: How to Play the Stock as Tariff Woes Linger
Amgen's AMGN stock has declined 10.4% in the past three months. A lot of this price decline is related to the broader macroeconomic uncertainty. Stocks have been on a roller-coaster ride since President Trump unveiled sky-high tariffs in early April and China came up with retaliatory tariffs. Last week, China and the United States struck a deal that eased trade tensions and resulted in a stock market recovery. Though the massive tariffs imposed by the United States and retaliatory tariffs by China and some other countries are now on a pause, it is only a temporary suspension, and no one knows what will happen after the 90-day tariff suspension ends. The uncertainty around tariffs and trade production measures remains, which has muted economic growth. Although pharmaceuticals have been exempted from tariffs in the first round, they could be Trump's target in the next round, considering the President's goal to shift pharmaceutical production back to the United States, primarily from European and Asian countries. Trump and the Republican government also continue to stress on the control of drug prices with the latest attempt being his 'most favored nations' policy.' Let's understand AMGN's strengths and weaknesses to better analyze how to play the stock in the uncertain macro environment. Amgen's revenues grew 9% year over year in the first quarter of 2025, driven by growing patient demand for its innovative medicines. Amgen is seeing declining revenues from oncology biosimilars and some legacy established products like Enbrel. Pricing headwinds and competitive pressure are hurting sales of many products. Sales of some key brands, like Otezla and Lumakras, have been lukewarm. However, revenues from key older medicines like Prolia, Repatha and Blincyto and new drugs like Tavneos and Tezspire are driving the top line. Rare disease drugs like Tepezza, Krystexxa and Uplizna, added from last year's acquisition of Horizon Therapeutics, are also boosting top-line growth. Amgen is also evaluating Kyprolis, Otezla, Nplate, Repatha, Lumakras, Tezspire, Uplizna and Blincyto for additional indications. Approval for the expanded use of these drugs can potentially drive further top-line growth. Uplizna was approved for IgG4-related disease in the United States in April 2025. Amgen's regulatory application for Uplizna in myasthenia gravis is under review in the United States, with an FDA decision expected on Dec. 14, 2025. Tezspire is under review in the United States for chronic rhinosinusitis with nasal polyps, with an FDA decision expected on Oct. 19, 2025. Amgen has invested several billion dollars in M&A deals over the last decade, which has bolstered its product portfolio and diversified its pipeline. Amgen is developing MariTide, a GIPR/GLP-1 receptor, as a single dose in a convenient autoinjector device with a monthly and, possibly, less frequent dosing. This key feature differentiates it from Eli Lilly's LLY and Novo Nordisk's NVO popular GLP-1-based obesity drugs, Zepbound and Wegovy, which are weekly injections. In clinical studies, it has shown predictable and sustained weight loss and a meaningful impact on cardiometabolic parameters. In March, Amgen initiated two phase III studies on MariTide in obesity as part of its comprehensive MARITIME phase III program. Separate phase III studies on MariTide in obesity, with or without type II diabetes, are currently enrolling patients. Additional MARITIME phase III studies on MariTide in specific obesity-related conditions are expected to be launched throughout 2025. Separate phase II studies on obesity and type II diabetes are also ongoing, with data readouts expected in the second half. An interesting BiTE drug, Imdelltra (tarlatamab), was approved for pre-treated advanced small cell lung cancer (ES-SCLC) in May 2024. Several phase III studies are currently ongoing on tarlatamab in earlier-line settings across extensive-stage and limited-stage SCLC. Imdelltra is believed to have blockbuster potential, as there are limited treatment options in late-line SCLC. Another important candidate, rocatinlimab, is being evaluated in phase III studies for atopic dermatitis and prurigo nodularis. Several data readouts are expected over the next six to 12 months, which could be important catalysts for the stock. Amgen has successfully launched some new biosimilar products this year, which generated impressive sales in the first quarter. In January, Amgen launched Wezlana, the first biosimilar version of J&J's JNJ blockbuster drug, Stelara. Wezlana generated sales of $150 million in the quarter. Wezlana was approved by the FDA in 2023 but was not launched until January 2025, as per a settlement with J&J. Amgen launched the first biosimilar version of Regeneron's Eylea, Pavblu, in the fourth quarter of 2024, which generated sales of $99 million in the first quarter of 2025. Another key biosimilar product, Bekemv, a biosimilar version of AstraZeneca's Soliris, was approved in the United States in May 2024 and was launched in the second quarter of 2025. In the first quarter of 2025, Amgen's biosimilar products generated impressive sales of $735 million, which rose 35% year over year. Amgen's new biosimilar launches will play a key role in mitigating the impact of Amgen's upcoming loss of exclusivity (LOE) over the next few years. Phase III studies are ongoing to evaluate biosimilar versions of Bristol-Myers' Opdivo (ABP 206), Merck's Keytruda (ABP 234) and Roche's Ocrevus (ABP 692). Patents for RANKL antibodies (including sequences) for Prolia and Xgeva expired in February 2025 in the United States and will expire in November 2025 in some European countries. Sales of these best-selling drugs are expected to erode significantly in 2025, mainly in the second half, due to patent erosion. Sales of Amgen's rare disease drugs, mainly Tepezza, have slowed down, which is a concern. The Medicare Part D redesign is expected to hurt sales of some of Amgen's drugs in future quarters. Enbrel and Otezla have been selected by the Centers for Medicare & Medicaid Services for Medicare Part D price setting beginning in 2026 and 2027, respectively. Pricing headwinds and competitive pressure are hurting sales of many products. Weakness in some key brands like Otezla and Lumakras creates potential revenue headwinds. Amgen's stock has risen 7.3% so far this year against a decrease of 3.1% for the industry. The stock has also outperformed the sector and S&P 500 index, as seen in the chart below. Image Source: Zacks Investment Research From a valuation standpoint, Amgen is reasonably priced. Going by the price/earnings ratio, the company's shares currently trade at 13.12 forward earnings, which is lower than 14.74 for the industry. The stock is also trading below its five-year mean of 13.80. Image Source: Zacks Investment Research The Zacks Consensus Estimate for earnings has risen from $20.59 to $20.79 per share for 2025 over the past 30 days. For 2026, the consensus mark for earnings has risen from $21.19 to $21.23 per share over the same timeframe. Image Source: Zacks Investment Research After analyzing the factors discussed above, we believe the company is well placed to maintain long-term revenue growth, driven by continued strong volume growth of key drugs, Repatha, Evenity and Prolia and increasing contribution from new innovative medicines like Tezspire, Tavneos and Imdelltra. It is expected to see continued clinical success from its mid- to late-stage pipeline. Though the initial data from MariTide studies were below expectations, MariTide has the potential to be a game-changer for Amgen. Along with all these factors, Amgen's consistently rising estimates, reasonable valuation and decent stock price appreciation are good enough reasons for those who own this Zacks Rank #3 (Hold) stock to stay invested for now. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
CNBC
19-05-2025
- Business
- CNBC
UnitedHealth's recovery rally has more room to run, says Katie Stockton
UnitedHealth (UNH) has experienced a sharp sell-off of nearly 50%, with two news-driven gaps-down in the past month that pushed the stock below long-term support near $447. This decline has caused significant damage to UNH's long-term technical outlook. However, the stock appears poised for a short-term rebound following its recent stretch of dismal relative performance. Since gapping down in mid-April, UNH has been in a steep relative downtrend versus the S & P 500 Index (SPX) , mirroring the bearish price action. Now, signs are emerging that a relief rally has begun, which long-term holders may welcome as an opportunity to reduce exposure. A daily counter-trend signal from the DeMARK Indicators hints at downside exhaustion for UNH, reinforcing oversold conditions and supporting the view that UNH is due for a near-term recovery. A countering signal showed upside exhaustion last September. Initial resistance is at former support (~$447), which, while not necessarily a reasonable objective, gives the short-term rally room to the upside. Looking at rest of healthcare The healthcare sector's problems have not been limited to UNH. The sector has been a source of short- and long-term underperformance. Heavyweights like Amgen (AMGN) , Eli Lilly & Co. (LLY) , Merck (MRK) , and Regeneron (REGN) saw bearish reversals late last year, while others like Johnson & Johnson (JNJ) and Pfizer (PFE) extended their secular downtrends. Now, these stocks are individually showing signs of downside exhaustion, and because healthcare stocks generally hold defensive properties, their relative performance should improve in a weaker tape. AMGN, for one, is oversold from an intermediate-term perspective in absolute and relative terms. The latest downdraft has brought AMGN back to a long-term support area near $260 defining the stock's trading range. The DeMARK Indicators have a new counter-trend signal supporting a minimum four-week period of stabilization, which should contribute to relative improvement versus the SPX. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. 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Yahoo
15-05-2025
- Business
- Yahoo
AMGN Q1 Earnings Call: Product Pipeline and Margin Expansion Drive Outperformance
Biotech company Amgen (NASDAQ:AMGN) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 9.4% year on year to $8.15 billion. The company expects the full year's revenue to be around $35 billion, close to analysts' estimates. Its non-GAAP profit of $4.90 per share was 15% above analysts' consensus estimates. Is now the time to buy AMGN? Find out in our full research report (it's free). Revenue: $8.15 billion vs analyst estimates of $8.03 billion (9.4% year-on-year growth, 1.5% beat) Adjusted EPS: $4.90 vs analyst estimates of $4.26 (15% beat) Adjusted EBITDA: $4.99 billion vs analyst estimates of $4.67 billion (61.2% margin, 6.7% beat) The company reconfirmed its revenue guidance for the full year of $35 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $20.60 at the midpoint Operating Margin: 14.5%, up from 13.3% in the same quarter last year Free Cash Flow Margin: 12%, up from 6.2% in the same quarter last year Market Capitalization: $141 billion Amgen's first quarter results were shaped by broad-based volume growth and new product launches across general medicine, rare diseases, inflammation, and oncology. Management highlighted the performance of 14 products with double-digit growth, as well as strong uptake of new biosimilars. CEO Robert Bradway emphasized, 'We delivered multiple positive Phase III readouts, initiated four new Phase III studies, and launched three new products or indications.' Looking ahead, Amgen's full-year guidance centers on further execution in its late-stage clinical pipeline and continued momentum in recently launched therapies. CFO Peter Griffith noted increased R&D investment to support assets such as MariTide, a potential obesity therapy, and ongoing expansion in the biosimilars portfolio. Management also acknowledged uncertainties from tariffs and tax policy, stating the company's manufacturing investments position it to adapt as needed. Amgen's management attributed the quarter's performance to the breadth of its product portfolio and significant progress in clinical development. Key growth areas included cardiovascular, bone health, rare disease, and oncology, with biosimilars delivering meaningful contributions. Broad product portfolio growth: Fourteen medicines delivered double-digit sales growth, spanning cardiovascular, bone health, rare disease, and oncology. Amgen's biosimilars segment generated over $700 million in revenue, up 35% year over year. General medicine expansion: Products like Repatha and EVENITY benefited from improved patient access, expanded prescriber base, and direct-to-consumer initiatives. Management cited ongoing clinical trials targeting large, underserved populations in cardiovascular and obesity-related diseases. Rare disease launches: UPLIZNA launched as the first FDA-approved treatment for IgG4-related disease, with early physician adoption. TEPEZZA expanded internationally, including approvals and launches in Japan and a positive regulatory opinion in Europe. Oncology pipeline momentum: Bispecific T cell engagers such as BLINCYTO and IMDELLTRA showed continued adoption and positive clinical data. IMDELLTRA demonstrated survival benefits in small cell lung cancer, with new Phase III studies underway. Biosimilars market penetration: Recent biosimilar launches, including PAVBLU and WEZLANA, were met with positive reception from prescribers. The company's approach focused on early U.S. launches and reliable supply to capture market share. Management's outlook for the remainder of the year is anchored by ongoing clinical advancement and new launches, while cautioning about external factors such as tariffs and increased R&D investment. Pipeline advancement: Significant late-stage studies for therapies like MariTide in obesity and Olpasiran in cardiovascular disease are expected to drive future growth, with management increasing R&D spending to support these programs. Expanding biosimilars: New biosimilar launches and further commercialization efforts are anticipated to diversify revenue streams and address pricing pressures in core therapy areas. External policy risks: Management flagged potential headwinds from evolving tax and tariff policies, emphasizing Amgen's historical ability to adapt through manufacturing investments and operational agility. Terence Flynn (Morgan Stanley): Asked about key data expectations for MariTide at the ADA meeting. Management said data would focus on 52-week efficacy and tolerability but not new long-term results. Salveen Richter (Goldman Sachs): Inquired about UPLIZNA's commercial strategy for IgG4-related disease. Amgen outlined targeted outreach to rheumatologists and plans for broader physician engagement. Michael Yee (Jefferies): Pressed on MariTide's tolerability and competition from oral obesity drugs. Management expressed confidence in design for efficacy and tolerability, with ongoing development of oral options. Trung Huynh (UBS): Questioned Repatha's position amid new competition. Amgen stressed product profile advantages and improved patient access, with room for multiple therapies in the market. David Amsellem (Piper Sandler): Asked what will drive growth for TEPEZZA. Management pointed to expanded prescriber education and international launches, with potential future benefit from a subcutaneous form. In coming quarters, the StockStory team will monitor (1) progress and data releases from late-stage clinical trials, especially for MariTide and bemarituzumab; (2) commercial adoption and prescriber uptake of newly launched therapies like UPLIZNA in IgG4-related disease and PAVBLU in biosimilars; and (3) updates on international expansion of key rare disease drugs. Execution in R&D and navigating policy changes will also be important indicators of Amgen's trajectory. Amgen currently trades at a forward P/E ratio of 13×. In the wake of earnings, is it a buy or sell? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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Globe and Mail
13-03-2025
- Business
- Globe and Mail
Is Amgen Stock a Buy, Sell, or Hold as Weight-Loss Drug Trials Kick Off?
Amgen (AMGN) is a biotech company based in California. It specializes in developing treatments for cardiovascular conditions, oncology, hematology, neurology, bone health, nephrology, and more. Amgen's stock has grown steadily this year, gaining 20% in 2025. However, shares are still trading roughly 10% below their 52-week high of $346.85. Amgen Tops Estimates Amgen reported its fourth-quarter results on Feb. 4. The pharmaceutical company posted a profit of $627 million, translating to $5.31 per adjusted share. This surpassed the estimated $5.03 per share. Amgen posted a revenue of $9.09 billion during the quarter, beating analysts' $8.86 billion estimate. Looking ahead, the company is guiding for revenue between $34.3 billion and $35.7 billion in 2025, up from $33.4 billion in 2024. The earnings per share forecast is between $10.89 and $12.14, also up from $7.56 in 2024. Amgen is targeting $2.3 billion in capital expenditures and up to $500 million in share repurchases. Weight-Loss Drugs Progress Through Clinical Trials Amgen has initiated two 'critical' late-stage trials for its experimental weight loss injection, MariTide. MariTide is a monthly injection designed to compete with existing weekly GLP-1 weight-loss drugs from Novo Nordisk (NVO) and Eli Lilly (LLY). GLP-1 drugs mimic gut hormones to reduce appetite and regulate blood sugar. Approximately 6% of U.S. adults use GLP-1 prescriptions, and the market is expected to be worth over $150 billion annually by the early 2030s. One Phase 3 trial involves around 3,500 participants who are obese or overweight without Type 2 diabetes, while the second trial includes 999 participants who are obese or overweight and have Type 2 diabetes. The primary goal of both studies is to measure weight loss over 72 weeks, with three target doses of MariTide being tested using dose escalation. Earlier Phase 2 trials showed that MariTide helped patients with obesity lose up to 20% of their body weight on average over a year, and up to 17% for patients with obesity and Type 2 diabetes, with no weight loss plateau. More data from the Phase 3 trials will be reported throughout the year. Analyst Ratings on AMGN Stock Analysts are quite positive about the biotech company with a 'Moderate Buy' consensus rating. Their mean price target of $319.04 is close to the current trading price, while the Street-high price target of $389 implies roughly 24% upside potential.
Yahoo
05-03-2025
- Health
- Yahoo
Amgen just got one step closer to bringing its monthly weight loss drug to market
Amgen (AMGN) is getting closer to challenging the weight-loss drug duopoly of Novo Nordisk (NVO), the maker of Ozempic and Wegovy, and Eli Lilly (LLY), which produces Zepbound. The pharma company announced today that it has begun two late-stage clinical trials for its experimental weight-loss drug, MariTide. If successful, MariTide could disrupt the market by offering a less frequent dosing regimen than the current weekly injections on the market. The drug has been tested as a once-monthly treatment, as well as with dosing intervals of every other month and once every three months. Amgen's chief scientific officer, Jay Bradner, shared key details of the new trials Wednesday morning at TD Cowen's annual healthcare conference. The two trials will enroll about 4,500 patients in total. One study will recruit 3,500 participants that are obese or overweight, while the other will include 999 people who are both obese or overweight and have type 2 diabetes. The primary objective of both studies is to assess the percentage of weight loss at 72 weeks. Amgen will test three dose levels — low, medium, and high — starting patients at a lower dose and gradually increasing it to the target doses. According to the studies are set to begin officially on March 17 and are expected to conclude in early 2027. In November, the company reported that MariTide helped patients with obesity or excess weight shed an average of 20% of their body weight in an earlier 52-week trial. For comparison, the highest dose of Wegovy resulted in an average weight loss of 15% after 68 weeks in clinical trials. Meanwhile, patients taking the highest dose of Eli Lilly's rival drug, Zepbound, achieved over 20% weight loss after 72 weeks. For the latest news, Facebook, Twitter and Instagram.
