Amgen (AMGN) - Amgen's stock experienced a significant drop in late November due to phase 2 clinical trial results for its weight loss candidate, MariTide, which showed a 20% body weight loss after 52 weeks, below the expected 25% [2][3] - The market's reaction to the trial results is seen as an overreaction, creating a buying opportunity for investors who view MariTide as a promising treatment alternative to weekly injections from Eli Lilly and Novo Nordisk [4][5] - Amgen trades at 13 times forward earnings, offers a 3.6% yield, and is developing a GLP-1/GIPR combination treatment that could compete with Eli Lilly and Novo Nordisk [6] Eli Lilly (LLY) - Eli Lilly's shares have risen by 32% over the past year, with potential for further growth in 2025 due to multiple catalysts, including label expansions for tirzepatide (marketed as Zepbound and Mounjaro) for reducing type 2 diabetes risk [7] - Clinical readouts for tirzepatide in treating metabolic dysfunction-associated steatohepatitis and progress in other pipeline programs, such as retatrutide and orforglipron for weight loss, could drive the stock price [8][9] - The company's financial results are expected to remain strong, supported by the rapid sales growth of Zepbound and Mounjaro, as well as newer products like Kisunla for Alzheimer's, which received regulatory approval in July [10][11] Summit Therapeutics (SMMT) - Summit Therapeutics' stock surged by 583% in 2024, driven by positive phase 3 study results for ivonescimab in treating non-small cell lung cancer (NSCLC), conducted by its partner Akeso [12] - The company is expected to report results from its own late-stage study of ivonescimab in combination with chemotherapy as a second-line treatment for NSCLC, which could lead to regulatory approval [13] - Summit is also conducting a phase 3 study of ivonescimab in combination with chemotherapy as a first-line treatment for NSCLC and plans to initiate another late-stage study of the drug as a monotherapy in the first-line setting [15] - With a market cap of around $13.5 billion, positive late-stage results could significantly increase the company's valuation [16]

On Friday, Novo Nordisk A/S NVO released headline results from the REDEFINE 1 Phase 3 trial in the global REDEFINE program.When evaluating the effects of treatment if all people adhered to treatment, people treated with CagriSema achieved a weight loss of 22.7% after 68 weeks compared to a reduction of 11.8% with cagrilintide 2.4 mg, 16.1% with semaglutide 2.4 mg and 2.3% with placebo alone.In November, Novo Nordisk said its hybrid drug, CagriSema, aims to reduce weight by 25% without added side effects.Wil ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.It also includes access to the Zacks Style Scores. What a ...

Core Viewpoint - Amgen's stock performance has lagged behind the broader market, with a recent decline of 7.73% over the past month, while the Medical sector and S&P 500 showed lesser declines and gains respectively [1] Financial Performance Expectations - Analysts anticipate Amgen will report earnings of $4.97 per share, reflecting a year-over-year growth of 5.52% [2] - The consensus estimate for quarterly revenue is $8.82 billion, indicating a 7.66% increase from the previous year [2] - For the entire fiscal year, earnings are projected at $19.51 per share and revenue at $33.16 billion, representing growth of 4.61% and 17.65% respectively [3] Analyst Projections and Market Sentiment - Recent shifts in analyst projections for Amgen are crucial as they often indicate changes in near-term business trends, with upward revisions suggesting positive sentiment towards the company's operations [4] - The Zacks Rank system, which incorporates estimate changes, currently rates Amgen as 3 (Hold), with a slight increase of 0.03% in the consensus EPS estimate over the past month [6] Valuation Metrics - Amgen's Forward P/E ratio stands at 14.13, significantly lower than the industry average of 24.46, indicating that Amgen is trading at a discount compared to its peers [7] - The company has a PEG ratio of 3.05, compared to the industry average of 1.81, suggesting that while Amgen's earnings growth is expected, it is currently valued higher relative to that growth [8] Industry Context - The Medical - Biomedical and Genetics industry, to which Amgen belongs, has a Zacks Industry Rank of 63, placing it in the top 26% of over 250 industries, indicating strong performance potential [8][9]

The Amgen logo is displayed outside Amgen headquarters in Thousand Oaks, California, on May 17, 2023.A version of this article first appeared in CNBC's Healthy Returns newsletter, which brings the latest health-care news straight to your inbox. Subscribe here to receive future editions.Wall Street is chewing over critical data released last week on Amgen's experimental weight loss injection – a potential competitor in the blockbuster obesity drug market. Some analysts said the initial mid-stage trial result ...

Investment Establishes Second Facility in Holly Springs; Builds on Previous $550M Commitment THOUSAND OAKS, Calif., Dec. 5, 2024 /PRNewswire/ -- Amgen (NASDAQ: AMGN) today announced a $1 billion expansion to establish a second drug substance manufacturing facility in North Carolina. This brings the company's total planned investment in Holly Springs to more than $1.5 billion, building on its previously announced $550 million commitment. "This expansion underscores our unwavering focus on bringing transforma ...

The relationship between interest rates and dividend stocks tends to follow a predictable pattern. When the Federal Reserve signals a shift toward monetary easing, investors often rotate toward stable, high-yielding equities that can provide both income and potential appreciation.Amgen (AMGN -0.02%) offers an intriguing test case for this dynamic heading into 2025. The biotech-giant's shares have slumped 3.37% in 2024, while the S&P 500 has surged 26.8% as of this writing, creating what might be a compellin ...

Amgen Inc. (NASDAQ:AMGN) Annual Evercore ISI HealthCONx Healthcare Conference December 4, 2024 10:00 AM ET Company Participants Peter Griffith - Executive Vice President and Chief Financial Officer James Bradner - Executive Vice President, Research and Development, and Chief Scientific Officer Susan Sweeney - Executive Vice President, Obesity and Related Conditions Justin Claeys - Vice President, Investor Relations Conference Call Participants Umer Raffat - Evercore ISI Umer Raffat Excellent. Hello, everyon ...

Core Viewpoint - Amgen's stock has experienced a decline of 12.1% over the past month, primarily due to investor disappointment with the weight loss results from its GLP-1 therapy, MariTide, which fell at the lower end of expectations [1][2] Group 1: MariTide and Clinical Data - The phase II study of MariTide demonstrated sustainable weight loss and significant improvements in cardiometabolic parameters, including a reduction in average blood sugar levels [1] - The weight loss reduction achieved was 20%, which aligns with results from existing GLP-1 drugs like Eli Lilly's Zepbound and Novo Nordisk's Wegovy [2] - Concerns regarding MariTide's impact on bone mineral density (BMD) were raised by analysts, but Amgen later clarified that there were no significant changes in BMD observed [3] Group 2: Financial Performance and Drug Portfolio - Amgen is facing declining revenues from oncology biosimilars and legacy products, with competitive pressures affecting sales of key brands like Otezla and Lumakras [5] - However, revenues from established drugs such as Prolia, Repatha, and new drugs like Tavneos and Tezspire are contributing positively to the top line [5] - The company is exploring additional indications for several key drugs, which could enhance revenue growth [6] Group 3: Pipeline and Future Prospects - Amgen has invested significantly in M&A to diversify its pipeline, with MariTide being developed as a convenient single-dose autoinjector [7] - The company plans to initiate the phase III MARITIME study for MariTide, targeting obesity and type II diabetes [8] - Amgen has several preclinical candidates for obesity and other promising drugs like Imdelltra and rocatinlimab in its pipeline, which could drive future growth [9][10] Group 4: Stock Performance and Valuation - Amgen's stock has declined 3.4% year-to-date, contrasting with an 8.8% increase in the industry [13] - The stock is currently trading at a price/earnings ratio of 13.73, which is lower than the industry average of 16.97, indicating an attractive valuation [16] - The Zacks Consensus Estimate for 2024 earnings has slightly increased from $19.49 to $19.51 per share over the past month [19] Group 5: Investment Outlook - Despite challenges such as pricing pressures and competitive threats, Amgen is positioned for long-term revenue growth driven by strong performance from key drugs and innovative medicines [22][23] - The recent data on MariTide, while below expectations, still holds potential for significant impact on the company's future [23] - The stock's reasonable valuation provides a compelling reason for investors to maintain their positions [24]

The battle for the multibillion-dollar obesity market just got fiercer. Amgen Inc's AMGN new drug candidate, MariTide, reported promising results, helping patients shed around 20% of their body weight. But when up against the current titans — Eli Lilly And Co LLY and Novo Nordisk A/S NVO — "promising" may not cut it. Weight Loss: A Tough Market For Newcomers Eli Lilly and Novo Nordisk's drugs, Zepbound and Wegovy, aren't just treatments—they're juggernauts. Amgen's MariTide enters the fray with a unique ant ...