Amgen Has A Big Launch Coming Up
RBC Capital Markets expects Amgen, Inc. (NASDAQ: AMGN) to "generally grind higher" in the next few months as the company waits on approval of a key cardiovascular drug – PCSK-9. While approval for PCSK-9 is not expected to come until July, Amgen, in the meantime, will be building up a new treatment for chronic heart failure, Corlanor. RBC Capital estimated that Corlanor, which is already distributed in Europe, will net Amgen $300 to $500 million annually during its peak.
Longer term, RBC Capital expects Corlanor to offer Amgen's PCSK-9 "marketing synergy" given that the "salesforce has already been built and trained."
Amgen recently traded at $166.87. The stock has gained 5 percent year-to-date and is up 45 percent in the prior 52 weeks.
RBC outlined four other factors that should support Amgen's price into the future:
There is a "growing buzz of low-cost optionality on the chance there is a partial or full injunction against a competitor." Or, RBC said, there is the possibility of a royalty – against a backdrop where the market expects nothing will happen.
Both PCSK-9 drugs will get approved, according to RBC predictions. RBC also outlined that the launch will be "modest," matching Wall Street expectations.
Amgen's pipeline deserves more love, RBC argued. The analysts predicted that "the pipeline will get more credit over time from PCSK-9" to its psoriasis drug that will launch next year, and its migraine and osteoporosis drugs as well.
RBC also weighed in on Amgen's biosimilars, noting that the drugs are "a great hedge" that is not yet in consensus.
Latest Ratings for AMGN
Jan 2015 | Barclays | Initiates Coverage on | Equal-weight | |
Jan 2015 | Morgan Stanley | Downgrades | Overweight | Equalweight |
Oct 2014 | Citigroup | Maintains | Buy |
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