William Blair Reiterates Outperform Rating on Amgen (AMGN)

William Blair analyst Matt Phipps reiterated an Outperform rating on Amgen (NASDAQ: AMGN)

The analyst commented, "On Monday, June 30, Amgen announced positive top-line results from the Phase III FORTITUDE-101 study evaluating the FGFR2b antibody bemarituzumab in combination with chemotherapy in first-line gastric cancer. The trial enrolled patients with advanced/metastatic gastric or gastroesophageal junction HER2-negative cancers with FGFR2b overexpression (IHC 2+/3+ staining in ≥10% of tumor cells) who were randomized to receive bemarituzumab plus mFOLFOX6 or mFOLFOX6 alone... Detailed efficacy and safety results were not disclosed in the press release, and Amgen plans to report the full data at a future medical conference. We look forward to the detailed update to understand the survival benefit seen with bemarituzumab as well as the safety profile. We believe that ocular AE rates and related discontinuation rates with bemarituzumab will be important data points to evaluate the potential market opportunity. In addition, a second Phase III study (FORTITUDE-102) evaluating bemarituzumab plus chemotherapy and Opdivo in first-line gastric cancer is reading out in the second half of this year... We still see a differentiated product profile for MariTide versus currently approved GLP-1 therapies or those in late-stage development, and therefore potential for meaningful market share and a multibillion-dollar peak sales opportunity. We continue to see revenue upside from key assets, including Repatha, Imdelltra, and Uplizna, and success with late-stage pipeline assets, such as rocatinlimab, bemarituzumab, and dazodalibep, could support the longer-term growth profile of the company. We therefore believe there is potential for margin expansion in addition to continued earnings growth from the mid- to late-stage pipeline."

For an analyst ratings summary and ratings history on Amgen click here. For more ratings news on Amgen click here.

Shares of Amgen closed at $277.13 yesterday.

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