Raymond James Points Towards Long-Term Growth
Raymond James has reevaluated Amgen Inc (AMGN), highlighting its diversified portfolio as a sturdy foundation for sustained, long-term growth in the dynamic pharmaceutical landscape.
The firm commends Amgen for skillfully spreading its investments across various therapeutic areas, mitigating risks associated with overdependence and fostering opportunities for future expansion.
At the same time, recent strategic moves, such as the Horizon deal, have reinforced Amgen’s foothold in treating rare diseases, paving the way for considerable growth. Additionally, successful product launches have solidified its competitive stance in the market.
Raymond James has reissued a Market Perform rating for Amgen.
Recent developments include the publication of data from Amgen’s animal and early-stage human trials of the experimental obesity drug AMG 133 (maridebart cafraglutide) in Nature Metabolism. The study validated the drug’s GIPR antagonist and GLP-1R agonist properties, demonstrating weight reduction and improved metabolic indicators in obese male mice and cynomolgus monkeys.
Nonetheless, concerns persist regarding the long-term viability of flagship products and reimbursement challenges in select markets.
Further Reading: Amgen’s Blockbuster Osteoporosis Drug Prolia Flagged With FDA’s Stricter Warning
Amgen’s innovative pipeline focusing on oncology, rare diseases, and obesity offers promises amid uncertainties. For instance, the FDA’s evaluation of the supplemental New Drug Application for Lumakras (sotorasib) to block KRAS mutations resulted in a Complete Response Letter following the CodeBreaK 200 trial for adults with KRAS G12C-mutated non-small cell lung cancer.
To secure full approval, the FDA mandated an additional confirmatory study, scheduled for completion by February 2028.
Despite these obstacles, Amgen remains confident in its operational prowess and profit margins.
Overall, the stock’s risk-reward balance seems steady, with the potential for market expansion through effective pipeline management, although acquisition opportunities could be constrained in the future.
Market Update: AMGN shares experienced a 0.44% decline, settling at $285.05 in the latest market evaluation.
Photo Source: Amgen
