Nomura Holdings analyst Ian Somaiya came out with some commentary on Amgen Inc. (NASDAQ:AMGN) following an FDA panel recommendation for the company’s drug Repatha, which is used to treat patients with high cholesterol. The analyst maintained a Buy rating on the stock with a price target of $182. Shares of AMGN closed yesterday at $155.55, up $0.75, or 0.48%.
Somaiya wrote, “We believe the recent FDA Advisory Committee panels for Amgen’s Repatha and SNY/REGN’s Praluent have put our and Street estimates at risk despite positive panel votes for both drugs. For Amgen, the committee voted 11-4 in favor of approval and 15-0 in favor of approval in homozygous familial hypercholesterolemia (HoFH).”
Further, “While the positive vote increases our confidence that Repatha will be approved by its Aug 27 PDUFA, we note that as with the Praluent panel on June 9, member comments were again cautious on labeling, safety and the need for positive CV outcomes data to support broader use. Our scenario analysis suggests that a label restricted to HoFH and HeFH (heterozygous familial hypercholesterolemia) would reduce peak sales to $1.4bn and our DCF to $176 (vs. $2.5bn; $182 currently).”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ian Somaiya has a total average return of 30.8% and a 75.7% success rate. Somaiya has a 6.9% average return when recommending AMGN, and is ranked #44 out of 3621 analysts.