Amgen's Diversified Business, Emerging Pipeline Drives Positive View, RBC Says
Amgen's (AMGN) well diversified business with no specific product driving over 10% of the top-line, no upcoming existential loss of exclusivity and emerging pipeline drive an incrementally more positive view, RBC Capital Markets said in a Thursday note, after its non-deal roadshow with the company's executives.The company highlighted key growth drivers of Repatha, Evenity, and Tezspire, as well as its rare disease, oncology, and biosimilar segments, have more than offset its losses due to Prolia biosimilar competition and Otezla generic pressure in the EU, according to the note.The six growth drivers are responsible for 70% of the company's total revenue, and they increased 24% in Q1, well above the total revenue growth of 6%, RBC analysts said.Amgen is confident of prevailing in its dispute with the Internal Revenue Service, saying that the agency's $10.7 billion figure in back taxes and penalties owed by the company is "significantly overstated," according to the note. The company had reiterated that the tax case will not limit its business development strategy, the firm noted.The company is enthusiastic regarding MariTide for both weight-induction and maintenance, but the firm said it remains somewhat cautious on the drug candidate.RBC kept its outperform rating on the company's stock with a price target of $370.Price: $335.42, Change: $-6.25, Percent Change: -1.83%