Follow Amgen to never miss an important update.
Amgen reported that its drug dazodalibep met its goals in a Phase 3 study, which is the final stage of testing before a company asks for government approval. The trial showed the drug helped patients with Sjögren's disease, a condition where the immune system attacks the glands that make moisture, leading to severe dry eyes, dry mouth, and body-wide fatigue.
This is a significant win because there are currently no approved treatments that address the underlying cause of this disease rather than just the symptoms. For Amgen, this adds another potential multi-billion dollar product to its pipeline as it works to replace revenue from older drugs that are losing their patent protection.
Source: PRNewsWire
Freedom Broker downgraded the biotech giant from a buy to a hold on Friday. The move comes as the stock has risen about 40 percent this year, leaving it trading well above the average analyst price target of $416.
While the company recently reported that 17 of its medicines are on track to reach a billion dollars in annual sales, this downgrade suggests some analysts believe the current price already reflects that growth. For long-term owners, the focus remains on whether upcoming data for the company's obesity drug can justify a higher valuation.
Source: Freedom Broker
A new study of more than 500,000 adults found that Repatha reduced the risk of heart attacks and strokes by 20 percent compared to ezetimibe, a standard non-statin treatment. This is the largest head-to-head analysis of its kind, providing stronger evidence for doctors choosing between treatments for patients who cannot rely on statins alone.
This data is important because Repatha is a key part of how Amgen is replacing revenue from older drugs that have lost their patent protection. Showing that the drug works better than cheaper alternatives in a massive, real-world group helps secure its place as a standard treatment for heart disease.
Source: PRNewsWire
After Amgen's November results, we updated our fair value and raised our projections for sales growth over the next five years. We have added the risk of regulatory setbacks for rare disease drugs to what we watch, and we increased our expected profit margin for the business to 47%. We also added the survival benefit data for the heart drug Repatha to our core thesis, and we now track how much profit comes from investment gains rather than medicine sales.
Amgen reported third-quarter revenue of $10.37 billion, topping the $10.07 billion analysts expected. Profits were also stronger than anticipated, with earnings per share reaching $6.45 compared to the $5.79 estimate. This growth was fueled by higher sales volumes rather than price hikes, which is a healthy sign for a biotech company facing pressure from government drug-pricing rules.
The results show the company is successfully diversifying its income. Seventeen different medicines are now on track to generate at least $1 billion in annual sales, helping to offset the decline of older products that have lost patent protection. While the market is closely watching for updates on its experimental weight-loss drug, MariTide, the current business is generating plenty of cash to fund that development.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Management consistently sets a bar they can clear, beating profit estimates for eight straight quarters. This reliable track record shows they have a firm handle on their costs even as older drugs lose protection from rivals.
| Expectation | |
|---|---|
| EPS | $5.64 |
| Revenue | $10.45B |