A Look at Amgen (AMGN) Valuation Following Landmark Repatha Trial Results and Newly Approved Indications

Amgen (AMGN) is getting well-deserved attention after announcing that its Phase 3 VESALIUS-CV trial for Repatha hit its dual primary endpoints. The study showed Repatha significantly cut cardiovascular events in high-risk patients without prior heart attack or stroke.

See our latest analysis for Amgen.

Amgen’s recent burst of positive trial data adds to a string of noteworthy corporate moves, including new manufacturing expansions and European approval recommendations for its asthma and sinusitis treatments. While these headlines have fueled a short-term rally, Amgen’s one-year total shareholder return is still slightly negative. Its strong longer-term returns suggest that momentum may be picking up again amid renewed optimism about its growth portfolio.

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But with analysts divided and the stock already rallying on a wave of positive news, investors have to ask: does Amgen remain undervalued at current levels, or has the market already priced in the next leg of its growth?

Most Popular Narrative: 4.5% Undervalued

Amgen's current share price sits just below the most widely followed fair value estimate, hinting at more room to run if all narrative assumptions play out. The difference between perception and projection is subtle, but it could be key.

*Advancements in personalized and targeted therapies, reflected in the robust late-stage pipeline (e.g., MariTide for obesity/type 2 diabetes, Repatha and olpasiran for cardiovascular, multiple bispecific T-cell engagers for oncology), position Amgen to launch high-margin, first-in-class products that drive both top-line growth and margin expansion in the coming years.*

Read the complete narrative.

Want to know the financial leap needed for Amgen to reach this target? The key is in bold forecasts for profit growth and superior margins. See which assumptions power this fair value and what could spark the next surge.

Result: Fair Value of $311.88 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent drug pricing pressures and intensifying biosimilar competition could quickly challenge Amgen's growth story if industry dynamics change.

Find out about the key risks to this Amgen narrative.

Build Your Own Amgen Narrative

If you want to test these assumptions yourself, it only takes a few minutes to shape your own investment perspective using the data at hand. Do it your way.

A great starting point for your Amgen research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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