Amgen's Diversified Portfolio To Drive Long-Term Growth, Though Uncertainties Loom, Analyst Says

Raymond James has resumed coverage of Amgen Inc AMGN, noting a diversified portfolio where Amgen has a strong presence that can help drive solid, sustainable long-term growth.

Raymond James writes that Amgen has effectively diversified its portfolio across various therapeutic areas, reducing concentration risk and enhancing growth potential. 

Recent deals, like the Horizon deal, have bolstered its presence in rare diseases, positioning it for substantial growth. Successful launches of key products have further strengthened its position. 

Raymond James resumes with a Market Perform rating.

Recently, Amgen’s data from animal and early-stage human trials of its experimental obesity drug AMG 133 (maridebart cafraglutide) was published in Nature Metabolism, confirming the GIPR antagonist and GLP-1R agonist activities in cell-based systems and the ability of AMG 133 to reduce body weight and improve metabolic markers in male obese mice and cynomolgus monkeys. 

However, concerns linger regarding the long-term durability of some flagship products and reimbursement challenges in certain markets. 

Also Read: Amgen’s Blockbuster Osteoporosis Drug Prolia Flagged With FDA Strictest Warning.

The company’s innovative pipeline, particularly in oncology, rare diseases, and obesity, holds promise but also faces uncertainties. 

In December, the FDA reviewed Amgen’s supplemental New Drug Application, seeking full approval of the KRAS-blocking drug Lumakras (sotorasib). 

This review, which resulted in a Complete Response Letter, was based on the CodeBreaK 200 trial results for adults with previously treated locally advanced or metastatic KRAS G12C-mutated non-small cell lung cancer. 

The FDA also issued a new post-marketing requirement for an additional confirmatory study to support full approval that will be completed by February 2028.

Despite these challenges, Amgen maintains confidence in its ability to execute and sustain its margins. 

Overall, the stock’s risk-reward balance appears relatively stable, with potential for multiple expansions through pipeline execution, although future acquisitions may be limited.

Price Action: AMGN shares are down 0.44% at $285.05 on the last check Thursday.

Amgevita Photo by Amgen