Amgen downgraded to Market Perform from Outperform at Leerink

Leerink analyst David Risinger downgraded Amgen (AMGN) to Market Perform from Outperform with a price target of $318, down from $324. The firm says that Amgen’s investment narrative has evolved since Leerink’s upgrade. Obesity expectations have risen significantly and driven price to earnings expansion, yet detailed MariTide Phase 1 results disclosed on February 5th raise uncertainty about what Phase 2 data will show, the firm notes. It believes that AMG133 needs to deliver compelling influence on metabolic parameters and blood glucose control in addition to substantial weight loss in Q4 2024 to be a competitive program. The leading players, namely Eli Lilly (LLY) and Novo Nordisk (NVO) have demonstrated exceptional health benefits with their incretin programs — tirzepatide and semaglutide. Leerkin is stepping to the sidelines ahead of the readout in Q4 because it is uncertain if AMG 133 will be a viable contender.