Amgen Provides Exposure To Obesity Drug At A Reasonable Price, Says Bullish Analyst

Amgen, Inc. AMGN shares have been in focus amid developments in the AI-powered healthcare space.

The company’s oral and injectable metabolic pipeline gives investors exposure to the obesity metabolic space at a much lower premium than peers, according to BMO Capital Markets.

The Amgen Analyst: Evan David Seigerman upgraded the rating for Amgen from Market Perform to Outperform, while raising the price target from $286 to $326.

The Amgen Thesis: Phase 1 data for oral small molecule AMG 786 in obese patients is expected in the first half of 2024, while Phase 2 data for AMG 133 in obese and T2D patients is expected in late 2024, Seigerman said in the upgrade note.

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“Beyond the opportunity in the metabolic space, we are positive on the significant strides Amgen has made to replace revenues lost to the company's eroding base business,” the analyst wrote.

“Positive for shares, the company has a rich catalyst set-up into 2024 with an approval decision on tarlatamab in 3L+ SCLC coming by 6/12/24, Ph 2 data for tezepelumab in COPD expected in 1H24, and Ph 3 data for rocatinlimab in atopic dermatitis potentially coming in 2024/2025,” he added.

AMGN Price Action: Shares of Amgen had risen by 0.87% to $277.89 at the time of publication on Tuesday.

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