Amgen Stock Slumps Amid Rivals' Cholesterol Drug Failure

The biotech giant Amgen's stock plummeted more than 10% in early trading after its competitor Novartis' cholesterol-lowering drug pelacarsen failed a crucial Phase 3 cardiovascular outcomes study. The study's failure raises doubts about the viability of Amgen's similar program, Olpasiran. This development is particularly concerning for Amgen as it faces patent expirations that could cost the company around $13 billion in revenue.

Amgen's pipeline, including its cholesterol-lowering candidates Olpasiran and MariTide, must deliver to offset impending declines in revenue. However, with Novartis' data suggesting that lowering Lp(a) may not reduce cardiovascular risk, Amgen's prospects look increasingly uncertain. Analysts are reevaluating their stance on the company's stock, with one expert downgrading their rating from Buy to Hold.

The failure of pelacarsen has significant implications for Amgen's pipeline and its future growth prospects. The company must now work towards developing new treatments that can offset the looming patent expirations and declining revenue.