Amgen's Cardiovascular Pipeline Under Fire After Novartis Trial Fails

Amgen's stock price has been plummeting due to concerns over its cardiovascular pipeline after Novartis's Phase 3 trial of Lp(a)HORIZON failed to show a reduction in major cardiovascular events. The failure of this trial raises doubts about Amgen's own late-stage drug, olpasiran, which is designed to lower Lp(a) levels.

The impact on Amgen's stock price has been significant, with shares sliding amidst fears that its cardiovascular pipeline may not live up to expectations. Despite this setback, Amgen remains a strong player in the market due to its robust cash generation and diverse portfolio of blockbuster and high-growth medicines.

A major concern for Amgen is its hefty debt, rising costs, and erosion in older franchises, which could limit its ability to invest in new drugs and expand manufacturing if key pipeline bets like olpasiran disappoint. This could potentially impact buybacks, deal-making, and profit growth in a tougher market.