Amgen's stock falls 4% as analysts say drug updates lag competitors

By Ciara Linnane

Biotech offered an update on two drugs in development but analysts said they're not as effective as existing treatments

Amgen Inc.'s stock was down 4% Wednesday, after the company offered an update on two drugs in development, but analysts said neither look as effective as rival products from competitors.

The company (AMGN) updated analysts on Tuesday on a late-stage trial of Uplizna as a treatment for myasthenia gravis, an autoimmune disease that causes muscle weakness, and on rocatinlimab as a treatment for atopic dermatitis.

The former showed less efficacy than Vyvgart, a medication developed by Argenx, according to JPMorgan analysts. "And on rocatinlimab in AD, while we await data from additional ph3 studies, the product does not appear particularly competitive in this increasingly competitive space," analyst Chris Schott wrote in a note to clients.

"Overall, we do not see these updates as likely shifting the focus/narrative on the AMGN story, which remains largely tied to the company's obesity program," he wrote.

Truist analysts were also cautious on rocatinlimab.

"While we note that this is an active drug with a novel MOA (mechanism of action) with potential utility in severe AD where there continues to be unmet need, we believe additional data points (time course of response, durability of effect, and most importantly side effect profile) and a better understanding of its positioning in the therapeutic landscape, are needed to get comfortable around the opportunity," analysts led by Srikripa Devarakonda wrote in a note.

Truist does not assign any value to the drug in its model for now.

Baird analysts said they're "incrementally negative" on the new data. Analysts led by Brian P. Skorney said the data on rocatinlimab looked unimpressive compared with Dupixent, a treatment jointly developed by Regeneron Pharmaceuticals Inc. (REGN) and France's Sanofi SA (FR:SAN), and Ebglyss, a treatment developed by Eli Lilly & Co. Inc. (LLY)

Baird has an underperform rating on Amgen's stock, while JPMorgan has a neutral rating and Truist has a buy rating.

Amgen's stock is up 9% in the year to date, while the S&P 500 SPX has gained 20%.

-Ciara Linnane

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09-25-24 1400ET

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