Upcoming pipeline catalysts as well as earnings visibility through the back half of 2016 would likely drive Amgen, Inc’s AMGN multiple, Goldman Sachs’ Terence Flynn said in a report. He maintained a Buy rating on the company, with a price target of $204.
Pipeline Catalysts
Amgen is launching a number of new drugs, including Repatha, Corlanor, Blinctyo and Imlygic. The company is also in the process of securing label expansions for Kyprolis.
Positive data from Repatha’s ongoing Phase III cardiovascular outcomes trial, likely in 1Q17, and future updates to guidelines are expected to “drive an inflection in the launch trajectory,” analyst Flynn stated. He estimated peak sales of $4 billion.
“In 2H16 we expect AMGN to report data from an ongoing Ph3 trial of Repatha designed to evaluate the drug’s impact on coronary plaque volume via intravascular ultrasound (IVUS). In our view if the Repatha IVUS data are positive, it will serve as an additional piece of data to support that the drug will likely have a beneficial impact on lowering CV events in Ph3,” Flynn wrote.
Moreover, Amgen’s late-stage pipeline is progressing, with Phase III data for Erenumab in episodic migraine expected in the back half of this year. Success of Erenumab and Omecamtiv would result in upward revisions to the estimates, the analyst noted.
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