RBC Comments on Amgen (AMGN) Repatha Data

RBC Capital maintained an Outperform rating on Amgen (NASDAQ: AMGN). This weekend Repatha data was presented as a late-breaking session at ACC and published in the New England Journal of Medicine.

Commenting on developments, analyst Michael J. Yee said, "At ACC this weekend, Amgen presented a pooled analysis of evolocumab (AMG-145) from 4500 pts from Phase II/III OSLER-1 and OSLER-2 studies showing very positive results over one year including: (1) LDLc reduction of 61% vs control, and (2) a very meaningful reduction of less than half of the adjudicated cardiovascular (CV) events: 0.95% for AMG-145 vs 2.18% for control (HR=0.47, p=0.003)."

"With strong LDL-c reductions across every PCSK-9 study, meaningful CV events reductions in pooled analyses for both AMGN and REGN, and historical precedent across dozens of studies including the most recent MRK "IMPROVE-IT" study showing the link between LDL-c reduction and reduction of serious CV events - we believe AMGN will eventually show the FDA, managed care, and investors: (1) positive IVUS plaque reduction data in 2016, and (2) statistically significant positive "outcomes" benefit in the 27,500 pt. FOURIER study which should read out no later than 2017," continued the analyst.

"We do expect investors to continue to debate the following topics for AMGN this year: biosimilar impacts) including whether 2016 Neualsta consensus is too high if Neupogen lost 14% share to TEVA in 2014) and PCSK-9 launch, peak sales - and whether oral CET-P inhibitors from LLY and MRK might be positive in 2016 (we think 40-50% chance) which could cause downside estimate revisions to PCSK-9," he added. "One big "wild-card" that Bulls have up their sleeves is whether there is any shot AMGN is able to implement a partial or full injunction against REGN (NASDAQ: REGN) for PCSK-9 this summer...Consensus is no injunction and both parties free to launch..Recall that Roche stopped their PCSK-9 program in 2013 citing in part the IP landscape...Pfizer is also finishing their own Phase III program."

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 $154.26 yesterday.

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