Amgen (NASDAQ: AMGN) Faces Challenges with Investigational Therapies, Baird Reaffirms Underperform Rating at $215.00 Target
Baird reaffirmed its underperform rating on Amgen (NASDAQ: AMGN) with a price target of $215.00 after analyzing new clinical data for the company's investigational therapies. The latest results from the rocatinlimab study in atopic dermatitis (AD) were deemed underwhelming by analysts at Baird. The treatment showed a modest 24-week reduction in disease severity, falling short compared to existing treatments like Dupixent and Ebglyss.
Analysts also expressed concerns about the uncertain side effect profile of rocatinlimab, while acknowledging the potential of Uplizna in generalized myasthenia gravis (gMG). However, the firm did not see it as competitive enough to be a game-changer for Amgen.
Despite positive updates on major pipeline programs and recent FDA approvals, Amgen faces challenges with Medicare's decision to negotiate prices for costly drugs, including Enbrel. This could potentially impact the company's financial health.
In conclusion, while Amgen has shown progress in its treatment portfolio, challenges remain with its investigational therapies. Investors should consider Baird's underperform rating and the potential impact of Medicare's pricing negotiations on Amgen's financial position.