Hours after President Donald Trump imposed 100% tariffs on pharmaceuticals with exemptions for companies building manufacturing plants in the U.S., Eli Lilly (NYSE:LLY) and Amgen (NASDAQ:AMGN) announced their latest investments in their home country. Lilly announced the opening of its ...

Core Insights - Viking Therapeutics (VKTX) is making significant progress in obesity drug development with its investigational drug VK2735, a dual GLP-1 and GIP receptor agonist [1] - Pfizer's acquisition of Metsera for $4.9 billion intensifies competition in the obesity market, adding four new clinical-stage programs to Pfizer's pipeline [2] - The recent mixed results from VKTX's mid-stage study raise concerns about the safety and tolerability of VK2735, particularly regarding higher dropout rates [4] Company Developments - VKTX is advancing VK2735 in both oral and subcutaneous forms for obesity treatment, with a focus now shifting to the subcutaneous version following mixed trial results for the oral formulation [5][9] - The company aims to compete with established players like Eli Lilly and Novo Nordisk, which dominate the obesity market with their injectable drugs [5] - Despite challenges, VKTX has achieved its primary and secondary endpoints in clinical studies, indicating potential for market share in the growing obesity sector [6] Industry Landscape - The obesity market in the U.S. is projected to reach $100 billion by 2030, with major players like Eli Lilly and Novo Nordisk already generating significant revenue from obesity drugs [7] - Amgen, AbbVie, and Merck are also entering the obesity space, with Amgen initiating phase III studies for its investigational drug MariTide [8][10] - The competitive landscape is becoming increasingly crowded, with multiple companies investing in next-generation obesity treatments [7][8] Financial Performance - VKTX shares have underperformed the industry year to date, trading at a premium with a price-to-book value ratio of 3.76 compared to the industry average of 3.22 [11][13] - Estimates for VKTX's loss per share for 2025 and 2026 have widened recently, indicating potential financial challenges ahead [14]

Core Insights - Amgen Inc. (NASDAQ: AMGN) has experienced lackluster performance over the past two years, with a total return of only 13% since coverage was initiated in August 2023 [2]. Company Performance - The stock of Amgen has shown minimal growth, indicating potential challenges in its market performance [2]. Investment Focus - The Growth Stock Forum emphasizes identifying attractive risk/reward situations, particularly in the biotech sector, and closely tracks portfolio and watchlist stocks [1].

Core Insights - Amgen (NASDAQ: AMGN) has experienced lackluster performance over the past two years, with a total return of only 13% since coverage was initiated in August 2023 [2]. Company Performance - The stock of Amgen has shown minimal growth, indicating potential challenges in its market performance [2]. Investment Focus - The Growth Stock Forum emphasizes identifying attractive risk/reward situations, particularly in the biotech sector, and closely tracks portfolio and watchlist stocks [1].

Group 1 - The article discusses Amgen Inc. and highlights impressive data from Imdelltra and Q1 results [1] - Allka Research has over two decades of experience in investment, focusing on identifying undervalued assets in various sectors including ETFs, commodities, technology, and pharmaceuticals [1] - The mission of Allka Research is to provide substantial returns and strategic insights, aiming to simplify investment strategies for both seasoned and novice investors [1] Group 2 - Allka Research seeks to empower individuals financially by sharing knowledge and analyses through Seeking Alpha [1] - The organization aims to inspire confidence in investors, fostering a community that can navigate the financial markets intelligently [1]

Core Insights - The article discusses Amgen Inc. and highlights the impressive data from Imdelltra and Q1 results, indicating a positive outlook for the company [1]. Group 1: Company Overview - Amgen Inc. is positioned as a significant player in the pharmaceutical industry, with a focus on delivering substantial returns and strategic insights [1]. - The company is part of a broader investment landscape that includes ETFs, commodities, and technology, showcasing its diversified approach [1]. Group 2: Investment Strategy - Allka Research emphasizes a conservative investment strategy, aiming to uncover undervalued assets and simplify investment approaches for both seasoned and novice investors [1]. - The mission of Allka Research is to provide thought-provoking analyses and informed perspectives, fostering a community of informed investors [1].

Company Overview - Amgen's shares increased by 3.5% to close at $285.41, supported by higher trading volume compared to normal sessions, following a 6.7% decline over the past four weeks [1] - The advisory committee to the European Medicine Agency recommended expanding the use of Uplizna for treating adult patients with active immunoglobulin G4-related disease, a rare autoimmune condition lacking approved therapies in the EU [2] Financial Performance - Amgen is expected to report quarterly earnings of $5.01 per share, reflecting a year-over-year decrease of 10.2%, while revenues are projected to be $8.93 billion, an increase of 5% from the previous year [3] - The consensus EPS estimate for Amgen has been revised 1.6% lower in the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Industry Context - Amgen operates within the Zacks Medical - Biomedical and Genetics industry, where Dynavax Technologies, another company in the same sector, experienced a 0.6% decline in its stock price [4] - Dynavax Technologies has an unchanged consensus EPS estimate of $0.14 for its upcoming report, representing a 16.7% increase from the previous year [5]

Core Insights - President Trump has demanded major pharmaceutical companies to lower drug prices to "most favored nation" levels by September 29, prompting a response from the industry [1][2] - The administration has not specified the actions it may take if companies do not comply, but has indicated a willingness to use all available measures to protect American families from high drug prices [2] - A total of 17 large pharmaceutical companies received letters from the government, instructing them to sell drugs directly to consumers, bypassing pharmacy benefit managers [3] Company Highlights - **Jazz Pharmaceuticals plc (NASDAQ:JAZZ)**: - Ranked 10th among the best pharmaceutical stocks, with 10 billionaire holdings [8] - Recently received FDA accelerated approval for Modeyso, the first therapy for a rare CNS cancer, showing a 22% overall response rate in trials [9] - Focused on rare oncology indications and has ongoing trials for other promising drugs [10][11] - **Elanco Animal Health Incorporated (NYSE:ELAN)**: - Also ranked 9th with 10 billionaire holdings, recognized for its leadership in veterinary pharmaceuticals [12] - Joined the S&P MidCap 400 Index in September 2025, reflecting increased investor confidence [13] - Reported double-digit organic growth in Q2 2025 and has a strong innovation pipeline with six potential blockbuster products expected by year-end [14][15]

Group 1 - Eli Lilly and Company is highlighted for its strong performance in the pharmaceutical sector, particularly in diabetes and obesity treatments [1] - Vertex Pharmaceuticals Inc is noted for its advancements in cystic fibrosis therapies, which continue to drive revenue growth [1] - Amgen Inc is recognized for its robust pipeline and focus on innovative therapies, contributing to its competitive position in the biotech industry [1] Group 2 - The abrdn Healthcare Opportunities Fund is discussed as a strategic investment vehicle focusing on healthcare sector opportunities, aiming to capitalize on market trends [1]

Core Insights - Amgen and Viking Therapeutics are positioned in the obesity drug market, with Amgen focusing on its lead candidate MariTide and Viking on VK2735, both showing significant potential [1][2] Amgen Overview - Amgen has a diverse portfolio across oncology, cardiovascular disease, inflammation, bone health, and rare diseases, with key products driving sales [3] - The acquisition of Horizon Therapeutics in 2023 has expanded Amgen's rare disease offerings, adding drugs like Tepezza and Krystexxa [4] - MariTide, Amgen's key pipeline candidate, is in late-stage development, with two phase III studies initiated for obesity treatment [5] - MariTide is being tested for monthly dosing, showing up to 20% average weight loss over 52 weeks in non-diabetic patients, though results were at the lower end of expectations [6] - Amgen's pipeline includes other promising drugs for various conditions, indicating significant commercial potential [7] - The company has a strong biosimilars portfolio, with ongoing development of biosimilars for major oncology drugs [8] - Sales of some best-selling drugs are expected to decline due to patent erosion, impacting future revenue [9] Viking Therapeutics Overview - Viking Therapeutics is a clinical-stage biotech with VK2735 showing potential for significant weight reduction in obesity treatment [10] - VK2735 demonstrated a 12.2% weight loss in a study, but faced high dropout rates of 28% due to adverse events [12][13] - The company plans to expand its obesity pipeline with a new drug application for a dual amylin and calcitonin receptor agonist [14] - Viking is also exploring candidates for other conditions, but faces challenges due to lack of marketed products and competition from larger firms [15] Financial Estimates - Amgen's 2025 sales and EPS estimates indicate a year-over-year increase of 6.7% and 6.4%, respectively, with upward trends in EPS estimates [16] - Viking's projected loss per share for 2025 is expected to widen by nearly 146%, with loss estimates increasing over the past 60 days [17] Stock Performance and Valuation - Year-to-date, Amgen's shares have gained over 5%, while Viking's shares have decreased by 40% [19] - Amgen's shares trade at a price/book ratio of 19.86, significantly higher than Viking's 3.41, indicating a more expensive valuation [20] Investment Considerations - Amgen is viewed as a financially robust, dividend-paying stock with strong revenue and profit growth potential [24] - Viking faces challenges due to its lack of marketed drugs and reliance on pipeline success, making Amgen a safer investment choice despite its higher valuation [25] - Amgen holds a Zacks Rank 3 (Hold), while Viking has a Zacks Rank 4 (Sell), reinforcing Amgen's favorable investment position [26]