Update shared on 30 Nov 2025
Fair value Increased 1.37%Amgen's analyst price target has been raised modestly to $322.88, with analysts citing stable revenue, recent guidance increases, and optimism around its pipeline despite ongoing challenges related to patent expiries.
Analyst Commentary
Recent Street research provides a nuanced view of Amgen’s valuation, outlook, and potential risk factors, with opinions split between those optimistic about its growth trajectory and those concerned about near-term challenges.
Bullish Takeaways- Bullish analysts have initiated or reiterated Outperform ratings for Amgen. They point to its strong pipeline and emerging products with high clinical potential as drivers for future growth.
- Amgen is viewed as a defensive large-cap biotech. A stable and diversified revenue base is seen as a positive in a volatile market environment.
- Recent guidance increases for both revenue and earnings per share signal management's confidence in ongoing execution and new product launches.
- The company’s participation in the next wave of innovation in biopharma, including treatments with curative potential, is seen as a long-term value creator.
- Analysts express concerns about upcoming patent expiries across key franchises. They highlight uncertainty around the company's ability to offset base business erosion with new products.
- Some price target increases are described as modest. This reflects limited visibility into how quickly Amgen’s pipeline can drive material revenue replacement or growth.
- While new drug launches and clinical progress are noted, their impact on valuation is tempered by reliance on one-time revenue items and the need for faster proof of pipeline execution.
- Mixed clinical trial results in competitive indications and pressure from biosimilars add to the cautious stance among some analysts, who await further clarity on growth sustainability.
What's in the News
- Amgen received full FDA approval for IMDELLTRA (tarlatamab-dlle) as a Category 1 preferred treatment for extensive stage small cell lung cancer, with proven survival benefit in Phase 3 trials (Key Developments).
- Repatha (evolocumab) demonstrated significant reduction in major cardiovascular events for high-risk adults in the Phase 3 VESALIUS-CV trial, with new clinical results presented at the American Heart Association Scientific Sessions (Key Developments).
- Amgen and AstraZeneca's TEZSPIRE (tezepelumab-ekko) was approved in both the US and EU for inadequately controlled chronic rhinosinusitis with nasal polyps, marking the first biologic targeting TSLP for this condition (Key Developments).
- Amgen announced a $650 million expansion of its US manufacturing network, expected to create nearly 750 new jobs and increase biologic drug production (Key Developments).
- Amgen and Biocon Biologics finalized a settlement, enabling US launch of BOSAYA and AUKELSO in October 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target increased slightly from $318.51 to $322.88, reflecting modest upward revisions.
- Discount Rate rose marginally from 7.48% to 7.55%, indicating a small increase in perceived risk or cost of capital.
- Revenue Growth expectation edged higher from 1.87% to 2.05%.
- Net Profit Margin improved modestly from 23.89% to 24.04%.
- Future Price/Earnings (P/E) Ratio ticked up from 23.56x to 23.69x. This reflects a slight valuation premium on forward earnings.
Disclaimer
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