Amgen stock maintains Overweight rating at Piper Sandler despite GI data
Investing.com - Piper Sandler has reiterated an Overweight rating and $328.00 price target on Amgen (NASDAQ:AMGN) following the company’s release of detailed MariTide tolerability data.
The market reacted negatively to the obesity drug’s gastrointestinal tolerability profile, particularly the incidence of nausea and vomiting, which at first glance appeared more problematic than competing options. This reaction led to Amgen shares losing approximately $10 billion in market value.
Piper Sandler’s analysis indicates that one- and two-step dose escalation strategies showed clear improvements in the drug’s tolerability profile, consistent with management’s statements when top-line results were announced in December.
The research firm believes that the even lower starting doses and three-step dose escalation regimens incorporated into the pivotal studies should produce a more commercially acceptable nausea and vomiting profile for the weight loss medication.
Piper Sandler maintains its positive outlook on MariTide, noting that the drug demonstrates commercially competitive weight loss efficacy and improvements in cardiometabolic parameters despite the market’s concerns about the tolerability data.
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