Amgen Stock Tumbles 8.33% as Cardiovascular Pipeline Setback Hits Valuation
Amgen Inc's stock price plummeted by 8.33% on September 8 due to a significant setback in its cardiovascular drug pipeline landscape.
The company is developing olpasiran, a key late-stage contender, and investors reassessed the probability of success and future commercial viability for Amgen's candidate after Novartis revealed that its Phase III trial for pelacarsen failed to reduce major adverse cardiovascular events despite successfully lowering target lipid levels.
Major Wall Street research firms adjusted their ratings and risk parameters on the stock, with BMO Capital downgrading Amgen from Outperform to Market Perform. Analysts pointed to valuation models suggesting the stock had stretched beyond intrinsic cash-flow projections near recent multi-month highs.
The convergence of elevated valuation multiples and a newly heightened risk profile prompted institutional portfolio managers to lock in gains and trim allocations.