On Tuesday, Piper Sandler reaffirmed an Overweight rating on Amgen (NASDAQ:AMGN), maintaining its price target at $344.00. This decision was made despite an initial decline in Amgen’s stock price following the release of phase 2 data for the company’s experimental drug, MariTide™. This drug is being evaluated for its efficacy and safety profile in weight loss management.
Analysts noted the potential for MariTide™ to achieve weight loss more rapidly than the comparable tirzepatide. MariTide™ shows results in 52 weeks, while tirzepatide takes 72 weeks. Additionally, MariTide™ offers the convenience of monthly dosing compared to the weekly dosing of tirzepatide. However, MariTide™ has safety concerns due to the high incidence of nausea and vomiting, especially after the first dose.
Despite these side effects, Piper Sandler believes Amgen has a product that stands out in the large and expanding weight loss drug market. The analyst noted that this asset is not currently included in their financial model, but is considered a unique offering within the competitive landscape.
The report also covers the market’s initial reaction to the top data, predicting that Amgen stock will recover from the initial selloff. The company suggests that the market may not have fully understood the potential of MariTide™ and its place in the weight loss category.
In summary, Piper Sandler’s position reflects a positive outlook on Amgen stock, supported by the potential for MariTide™ to be a differentiated product in the growing weight loss treatment market. The Overweight rating and $344.00 price target indicate the company’s confidence in the stock’s performance going forward.
In other recent news, biotech company Amgen has made significant progress. The company’s third-quarter revenue rose 23% to $8.5 billion, and its 2024 revenue forecast is between $33 billion and $33.8 billion. Amgen also announced the appointment of Howard Chang, MD, Ph.D., as its new Senior Vice President of Research and Chief Scientific Officer.
Morgan Stanley maintained an Equalweight rating on Amgen stock and set a price target of $22.00 following the release of Phase 2 clinical trial results for the company’s diabetes drug MariTide. The company projects that MariTide’s global unadjusted sales will reach approximately $5.9 billion by 2033.
Citi initiated coverage of Amgen with a Neutral rating and a $335 price target, focusing on the potential impact of MariTide. Other analyst firms such as TD Cowen, Jefferies, and Cantor Fitzgerald maintain a Buy or Overweight rating on the company, with price targets ranging from $383 to $405.
BMO Capital Markets also maintained an Outperform rating for Amgen and set a price target of $362.00, while Barclays reaffirmed an Equalweight rating and maintained a price target of $315.00.
InvestingPro Insights
Amgen’s financial metrics and market position provide additional context to Piper Sandler’s optimistic outlook. As highlighted by InvestingPro Tips, with a significant market capitalization of $139.95 billion, Amgen has established itself as a major player in the biotechnology industry. The company’s 21.25% revenue growth over the past 12 months and 23.18% quarterly growth in the third quarter of 2024 demonstrate strong financial performance consistent with the potential impact of new products such as MariTide™.
InvestingPro Tips also show that Amgen has raised its dividend for 14 consecutive years, demonstrating its financial stability and shareholder value. This consistent dividend growth and current dividend yield of 3.06% may provide additional appeal to investors beyond the potential of its drug pipeline.
A P/E ratio of 32.99 over the past 12 months and an adjusted P/E of 47.93 suggest premium valuations, but this may be justified by the market’s future growth expectations for promising treatments such as MariTide™. As noted in InvestingPro Tips, the company’s profitability over the past 12 months further supports Piper Sandler’s Overweight rating.
Investors seeking a more comprehensive analysis may want to check out 7 more articles on Amgen. You can access InvestingPro Tips to gain a deeper understanding of a company’s financial health and market position.
This article was translated with the help of artificial intelligence. Please refer to the Terms of Use for further details.
**Given the competitive landscape for weight loss drugs, what key differentiators for MariTide™ could drive market share and potentially justify a premium price point for the drug?**
## Interview with Experts on Amgen and MariTide™: A New Hope for Weight Loss?
**Guests:**
* **Dr. Emily Chen**, Biotech Analyst at [Reputable Financial Institution]
* **Michael Scott**, Healthcare Portfolio Manager at [Reputable Investment Firm]
**Moderator:** Welcome to our discussion on Amgen and its promising new drug, MariTide™, a potential game-changer in the weight loss market. Let’s dive right in.
**Section 1: MariTide™ and its Potential**
**Moderator:** Dr. Chen, Piper Sandler seems optimistic about MariTide™’s potential despite initial market apprehension. What are your thoughts on the drug’s efficacy and safety profile based on the released phase II data?
**Dr. Chen:**
*(Open-ended response encouraged, considering both positive aspects like faster weight loss and monthly dosing, and concerns like nausea and vomiting.)*
**Moderator:** Michael, how do you assess the potential market for MariTide™ given the competitive landscape with existing weight loss drugs like tirzepatide?
**Michael:**
*(Open-ended response encouraged, discussing the size of the weight loss market, how MariTide™ differentiates itself, and potential challenges like pricing and insurance coverage.)*
**Section 2: Investor Perspective**
**Moderator:**
The article mentions a range of analyst ratings and price targets for Amgen. Dr. Chen, what factors besides MariTide™ might be influencing these varying opinions?
**Dr. Chen:**
*(Open-ended response encouraged, discussing Amgen’s overall financial performance, other drugs in their pipeline, macroeconomic factors, and general investor sentiment towards biotech stocks.)*
**Moderator:** Michael, what are your investment criteria when evaluating a company like Amgen, especially with a new drug on the horizon?
**Michael:**
*(Open-ended response encouraged, discussing factors like revenue growth, profitability, dividend history, management team, and risk tolerance.)*
**Section 3: The Future of MariTide™ and Amgen**
**Moderator:**
Dr. Chen, what are the next milestones we should be looking for regarding MariTide™’s development and potential market approval?
**Dr. Chen:**
*(Open-ended response encouraged, discussing upcoming clinical trial phases, regulatory hurdles, potential launch timeline, and Requates needed for commercial success.)*
**Moderator:** Lastly, Michael, what is your overall takeaway regarding Amgen as an investment opportunity considering both the promise of MariTide™ and the broader market conditions?
**Michael:**
*(Open-ended response encouraged, synthesizing previous discussions and providing a balanced outlook on Amgen’s future prospects.)
**Moderator:** Thank you both for sharing your insights. This has been a fascinating discussion on Amgen and the potential impact of MariTide™ on the weight loss market.
*(Optional concluding remarks)*
**Note:**
Remember to encourage your guests to elaborate on their points and provide concrete examples whenever possible.
This interview format is designed to generate a rich and informative discussion, providing viewers with a balanced and nuanced understanding of Amgen’s current standing and future potential.
