Terence Flynn, an analyst from Morgan Stanley, maintained the Hold rating on Amgen (AMGN – Research Report). The associated price target remains the same with $330.00.
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Terence Flynn has given his Hold rating due to a combination of factors surrounding Amgen’s key pipeline asset, MariTide. While the efficacy of MariTide, a monthly GLP-GIP for diabesity, aligns with expectations and is comparable to existing weekly treatments, concerns remain about its tolerability profile, particularly the high rates of nausea and vomiting observed during trials. These side effects pose an open-ended question as the drug moves into Phase 3 trials.
Despite Amgen’s confidence in their Phase 3 design and dose escalation plan, there is skepticism about the current approach, especially regarding the high incidence of gastrointestinal events. The company has made adjustments to the dosing strategy, including a new intermediate step, to mitigate these side effects. However, the effectiveness of these changes remains to be seen, contributing to the cautious Hold rating as the market awaits further data from the upcoming trials.
In another report released yesterday, Citi also maintained a Hold rating on the stock with a $300.00 price target.