Amgen's Stock Price Plummets Amidst Failed Trial of Rival Drug
Amgen's stock price plummeted by 10% on September 8 due to a failed trial of Novartis' drug pelacarsen, which targets low-density lipoprotein cholesterol. The unexpected drop erased tens of billions in value for Amgen, although its actual earnings remained unchanged.
The market had assumed that lowering Lp(a), a genetically driven cardiovascular risk factor, would automatically reduce cardiac events. However, Novartis' results showed that even with an 80% reduction in Lp(a), heart attacks, strokes, and cardiovascular deaths were not significantly reduced.
Amgen's R&D chief James Bradner emphasized that the company's own drug olpasiran cuts Lp(a) by a higher percentage than pelacarsen and targets a higher-risk population. However, the actual efficacy of deeper reductions remains unproven.