Amgen (AMGN) KYPROLIS Efficacy Strong But Safety Concerns Could Impact Adoption, BMO Capital Says

BMO Capital analyst Jim Birchenough weighed in on Amgen (NASDAQ: AMGN) as the company will present several sets of KYPROLIS myeloma data at ASCO including from ENDEAVOR. As previously announced, KYPROLIS dex (Kd) increased PFS over VELCADE dex (Vd) in RRMM patients – 18.7 vs. 9.7 mo. The abstract notes that median duration of treatment was longer with Kd, ~40 vs. ~27 weeks and ORR (VGPR/CR) higher 77% (54%/12.5%) vs. 63% (29%/6%). While treatment discontinuation and on-study death rates were no different, grade 3 or higher hypertension, dyspnea, cardiac failure, and acute renal failure incidence was 2-3 fold higher in the Kd arm; as expected the rate of grade 2 or higher, peripheral neuropathy was reduced.

Birchenough commented, "We are reiterating our Market Perform rating on the shares of AMGN following review of ASCO2015 abstracts and data for KYPROLIS in myeloma. While data confirm superior PFS benefit of KYPROLIS vs VELCADE in combination with REVLIMID, we believe that KYPROLIS safety concerns could impact adoption in the context of long-term experience and comfort with VELCADE based therapy in myeloma. Outside of the U.S., we expect limited adoption of the potentially expensive KR combination and continue to believe that expectations for KYPROLIS as a growth driver are aggressive."

The firm maintained a Market Perform rating and price target of $139 on the stock.

For an analyst ratings summary and ratings history on Amgen click here. For more ratings news on Amgen click here.

Shares of Amgen closed at $158.39 yesterday.

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