|Bid||175.96 x 20000|
|Ask||176.22 x 9000|
|Day's range||175.00 - 177.84|
|52-week range||148.00 - 190.72|
|Beta (3Y monthly)||0.22|
|PE ratio (TTM)||13.99|
|Forward dividend & yield||5.26 (2.97%)|
|1y target est||N/A|
(Bloomberg) -- Amgen Inc. shares could hit a record if an experimental new cancer medicine is able to show improvements in a handful of patients later this week.A medicine known as AMG 510 has already shown early promise as data from June indicated the treatment can lead to responses at low doses. AMG 510 targets a cancer mutation known as KRAS G12C, which is thought to be present in roughly 13% of non-small cell lung and as many as 5% of colon tumors.Getting a drug to work on KRAS mutations has been the “the white whale of drug discovery,” Amgen’s head of global development has said.Updated results for AMG 510 are expected to be presented at the International Association for the Study of Lung Cancer or IASLC’s World Conference on Lung Cancer in Barcelona on Sunday. Options data for Amgen implies the stock may move 3.6% either way between now and Sept. 13. A more than 3% move to the upside for the biotech company would drive shares to a record high.According to one of the more bullish analysts covering Amgen - Jefferies’ Michael Yee - Medicines targeting KRAS have the potential to be a $2 billion or more class of drugs. Yee expects the data to show three more months of follow-up for the initial 5 of 10 lung cancer patients who responded to the therapy.Investors are looking for an overall response rate of 50% or better for the higher dose of the drug, Yee said. That’s after the lung cancer data showed that all three lung cancer patients getting the highest dose had responded in the last update. He expects the next look at the data may be in ten to 15 patients, although the company hasn’t guided as to how many patients will be in those results.Seventy-five percent or better would be a bull case, but even if the response rate were below 50%, Amgen still has a drug, Yee said. However, that could open the door for a key competitor, smallcap drug developer Mirati Therapeutics Inc.The next 12 months for Amgen will be “catalyst packed” Yee said. With less hedge funds and mutual funds invested in Amgen than other large-cap biotech peers, Amgen has room for those investors to come into the name, he told clients in an August video.Amgen bears have eyed the company’s early data and speculated Mirati’s competing medicine could produce better results. The small-cap’s shares rose 8 fold from the start of 2017 through 2018. Yet, there are signs the mania may be fading. A scant month after the stock reached a record in July, the company got its first sell rating and shares are now 25% below their peak.“While MRTX849’s clinical profile might ultimately emerge as differentiated relative to Amgen’s AMG 510,” if Amgen achieves a response rate of 50% or better in lung cancer at the higher dose, Mirati’s medicine may face “too high of a bar,” JPMorgan analyst Anupam Rama wrote in an August note.Options data implies Mirati may move 10% between Wednesday and Sept. 20.Meanwhile another heavyweight drugmaker, Johnson & Johnson, has kicked off its’ own study of a KRAS-inhibitor in colon and lung cancers, according to clinicaltrials.gov.\--With assistance from Gregory Calderone and Michelle Fay Cortez.To contact the reporter on this story: Cristin Flanagan in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Steven Fromm, Morwenna ConiamFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The ruling from U.S. District Judge Richard Andrews in Wilmington, Delaware was the latest reversal of fortune in a long-running lawsuit in which Amgen is seeking to stop French drugmaker Sanofi and U.S. biotech Regeneron from selling their drug Praluent. Repatha and Praluent won U.S. approval about two weeks apart in July of 2016.
On August 26, Amgen (AMGN) announced the purchase of leading immunology drug Otezla from Celgene (CELG) for a cash consideration of $13.4 billion.
(Bloomberg) -- Amgen Inc. will pay $13.4 billion for a blockbuster psoriasis drug from Celgene Corp., which is shedding the asset in order to win antitrust regulators’ sign-off for its $74 billion merger with Bristol-Myers Squibb Co.The all-cash deal will give Amgen a growing product at a time when the blockbuster biotechnology drugs it made its name on are beginning to fade. For Celgene and Bristol-Myers, the divestiture will pave the way to one of the pharmaceutical industry’s largest mergers of the past decade.The price is $11.2 billion once future cash tax benefits are taken into account, Thousand Oaks, California-based Amgen said in a statement Monday. Bristol-Myers also expanded a share-buyback plan to $7 billion, from $5 billion.Bristol-Myers has a competing psoriasis drug in development, and in June announced its plan to divest Summit, New Jersey-based Celgene’s Otezla. The psoriasis drug had sales last year of $1.61 billion, and is expected to bring in revenue of $2.71 billion in 2023, according analysts’ estimates compiled by Bloomberg.Shares of Bristol-Myers and Celgene both rose after the announcement: Bristol-Myers rose 3% at 10:30 a.m. in New York trading, and Celgene was up 3.1%. Amgen climbed 3.3%.Antitrust authorities have taken an increasing interest in pharmaceutical deals, which have in the past attracted less scrutiny. Along with the U.S. Federal Trade Commission’s scrutiny of the Celgene deal with Bristol-Myers, the agency is also looking at Roche Holding AG’s planned acquisition of gene therapy company Spark Therapeutics Inc.Antitrust divestitures can present a chance for acquirers to bargain-shop, since the selling companies need to shed the asset to achieve their larger objective. But Celgene and Bristol-Myers may have bucked that trend. Earlier this month, Jefferies analyst Michael Yee said that an $8 billion price would be the benchmark for a cheap price. And in July, Mizuho analyst Salim Syed put a $10 billion high-end price on the drug.The deal is the largest transaction Amgen has attempted in recent memory. The company had one of the largest cash piles in the industry at the end of 2017, stoking speculation that it might use its hoard to buy smaller biotechnology companies. However, last year Amgen spent $10 billion to buy back its own shares rather than pursue a large deal.In an interview Monday, Chief Financial Officer David Meline said Amgen has previously held off on conducting mergers because it viewed potential targets as too expensive.“It’s been quite some time since we’ve done a transaction as it related to business development,” Meline said. “In part, that’s because prices we’ve seen have been too high.”Meline and Murdo Gordon, executive vice president of commercial operations, said Otezla fits well into Amgen’s existing research portfolio. The takeover won’t impede Amgen’s ability to pursue other potential takeovers, Meline said.The deal is contingent on Celgene and Bristol-Myers getting final antitrust approval. Bristol-Myers had previously said it expected the deal to close by the beginning of 2020. On Monday, Bristol-Myers said it now expects the deal to close by the end of this year.Psoriasis is a disease of the immune system, and causes a sometimes-painful rash when it flares up. An estimated 8 million Americans are affected by psoriasis, according to the National Psoriasis Foundation. Otezla is approved for what’s known as plaque psoriasis, the most common form of the disease, as well as psoriatic arthritis.(Updates with comment from Amgen CFO in ninth paragraph. An earlier version of this story corrected the company location to Thousand Oaks.)\--With assistance from Thomas Mulier and Cristin Flanagan.To contact the reporters on this story: Drew Armstrong in New York at firstname.lastname@example.org;Rebecca Spalding in Boston at email@example.comTo contact the editors responsible for this story: Drew Armstrong at firstname.lastname@example.org, Mark SchoifetFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Amgen, which announced the deal on Monday, is paying a hefty price for the drug, analysts and investors said. Bristol-Myers and Celgene's shares were both up around 3 percent. Bristol-Myers said in June that it would sell Otezla to allay concerns raised by the Federal Trade Commission because of a competing treatment that it is developing.
On August 21, Spanish website Intereconomia reported that Amgen would be announcing its acquisition of Alexion Pharmaceuticals in the next few days.
Favorable patent ruling related to Enbrel and strong second-quarter results drive Amgen (AMGN) stock 22.6% higher in the past three months.