On Wednesday, Deutsche Bank (ETR:DBKGn) maintained a Hold rating on Amgen (NASDAQ:AMGN) with a steady price target of $310.00. The firm's assessment is based on recent prescription data which indicates a significant increase in the company's drug volume, potentially leading to higher-than-expected sales for the second quarter of 2024.
According to the latest IQVIA prescription data, Amgen's second-quarter volume has seen a 28% year-over-year rise. This surge suggests that the company's top-line sales could reach approximately $8.4 billion, slightly surpassing Wall Street's projection of around $8.3 billion.
However, Deutsche Bank forecasts non-GAAP earnings per share (EPS) for Amgen at $4.83, which is below the consensus estimate of $4.96 per share. The firm attributes this to the operating expenses not being fully accounted for in the Street's estimates, despite guidance provided during Amgen's first-quarter earnings call.
The analyst highlighted Amgen's Immunology and Bone health portfolios as likely contributors to the revenue beat, with both segments trending above Street expectations.
Additionally, Tepezza, a treatment for thyroid eye disease, is experiencing a steady increase in prescriptions, although the firm anticipates a gradual climb due to the need for ongoing physician education regarding its use in mild-to-moderate cases.
Looking ahead to the second half of 2024, Deutsche Bank anticipates several Phase 3 study results for Amgen's products, including Tezepelumab, OX40, and Uplizna. However, the firm believes that the top-line Phase 2 data for AMG133, expected by the end of the year, will be the primary focus for investors, overshadowing other non-GLP1 (glucagon-like peptide-1) assets.
The anticipation for additional details on AMG133's Phase 2 trial may create uncertainty and influence Amgen's share performance in the interim.
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In the biopharmaceutical sector, Amgen Inc (NASDAQ:AMGN) has been in the spotlight with several developments. The company reported a major reduction in flares for patients with Immunoglobulin G4-related disease (IgG4-RD) in a Phase 3 clinical trial for UPLIZNA. Amgen plans to seek regulatory approval for UPLIZNA as a treatment for IgG4-RD in the U.S. and other key markets.
Analysts have also shown confidence in Amgen. Argus increased the company's price target from $300 to $340, maintaining a Buy rating. RBC Capital Markets also raised its price target for Amgen shares, citing optimism surrounding the firm's obesity treatment program, MariTide, and its broader cardiometabolic portfolio.
InvestingPro Insights
Amgen (NASDAQ:AMGN) has demonstrated a robust performance with a notable 50.79% one-year price total return as of the latest data. Investors are drawn to Amgen's consistency in dividend growth, having increased its dividend for 14 consecutive years, which aligns with the company's recent trend of strong sales as highlighted by Deutsche Bank. The current dividend yield stands at 2.7%, offering a compelling case for income-focused investors.
While the company trades at a high earnings multiple with a P/E ratio of 47.55 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 40.41, this reflects Amgen's position as a prominent player in the biotechnology industry. With a price hovering near its 52-week high at 99.18% of the peak, Amgen's stock may be considered by some investors as in overbought territory according to one of the InvestingPro Tips. However, the company's low price volatility could be a reassuring factor for those looking for stability in their investments.
For those interested in a deeper analysis, InvestingPro offers additional insights and metrics, with a total of 15 InvestingPro Tips available for Amgen. These tips provide a comprehensive look at the company's financial health and market position. To explore these insights and optimize your investment strategy, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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