On Friday, BMO Capital Markets adjusted its price target for Amgen (NASDAQ:AMGN), a biopharmaceutical company, increasing it to $355 from the previous $336. The firm has also reiterated its Outperform rating for the shares. The revision followed Amgen's recent earnings call, where the company provided updates on its obesity drug portfolio.
During the call, Amgen's management announced the progression of MariTide, an obesity treatment candidate, into Phase 3 clinical development. This decision was based on encouraging interim results from Phase 2 studies. However, specific data from these trials was not disclosed during the call. Management described the drug's profile as "differentiated," but investors are expected to wait for detailed topline results, which are anticipated to be released in late 2024.
Amgen also made a significant decision to halt the development of AMG 786, an oral small molecule asset, following the completion of its Phase 1 trial. The company did not elaborate on the reasons for discontinuing this particular asset during the call.
Investors and industry watchers are now looking forward to late 2024, when Amgen is slated to share the topline data for MariTide's ongoing studies. This information will provide a clearer picture of the potential impact and efficacy of the drug within the obesity treatment landscape.
InvestingPro Insights
Following the recent updates from Amgen (NASDAQ:AMGN), BMO Capital Markets has raised its price target, reflecting a positive outlook on the company's progression in the biopharmaceutical space. In line with these developments, key metrics from InvestingPro show that Amgen has a market capitalization of $149.32 billion and a P/E ratio of 22.15, indicating a robust valuation by the market. Additionally, the company's revenue growth over the last twelve months as of Q1 2024 stands at a significant 17.88%, underscoring its financial momentum.
InvestingPro Tips highlight that Amgen has consistently raised its dividend for 14 consecutive years, demonstrating a commitment to shareholder returns. However, it's worth noting that 7 analysts have revised their earnings downwards for the upcoming period, which could be a point of consideration for investors. Moreover, the company is trading at high valuation multiples, such as P/E and EBITDA, which suggests expectations of strong future performance.
For those looking to delve deeper into Amgen's financials and forecasts, InvestingPro offers additional insights and tips. Readers can take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes over 10 additional InvestingPro Tips for a comprehensive investment analysis.
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