Amgen (AMGN) Gains FDA Approval For Broadened Repatha® Use In Cardiovascular Risk Management

Amgen (AMGN) recently received an expanded FDA approval for Repatha®, broadening its use for adults at risk of major cardiovascular events. During the same quarter, the company reported significant earnings growth, with Q2 revenue rising to $9,179 million. Despite a 3% price increase over the last quarter, the overall market showed a 15% annual growth trend, which suggests that Amgen’s developments in expanding product approvals and strong earnings may have contributed positively, aligning with broader market movements rather than significantly outperforming them.

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The expanded FDA approval for Repatha® may bolster Amgen's position against looming threats from biosimilar competition and patent expirations. This development could potentially stabilize or boost revenue streams by broadening its market reach and enhancing volume growth, even as pricing pressures persist. Over the last five years, Amgen's total shareholder return was 33.25%, showcasing a complex balance between new product regulations and market expansion efforts.

Over the past year, Amgen underperformed the US Market, which achieved a return of 15.5%. Meanwhile, in the biotech space, the company saw a decline relative to the industry’s performance. The current share price of $288.47 places it below the consensus price target of $311.88, reflecting a discount of 8.12%. This indicates mixed sentiment regarding future prospects, factoring in growth headwinds and regulatory hurdles. Repatha®'s expanded approval could influence analysts to adjust revenue and earnings forecasts, potentially narrowing the gap between current market valuation and price targets.

Gain insights into Amgen's past trends and performance with our report on the company's historical track record.

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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