Amgen Inc. concluded Friday's trading session with a notable 4.5% gain, closing at $384.32 and marking a fresh 52-week high for the biotechnology firm. This advance extends the stock's rally into a third consecutive session.
Payer Pressure and Growth Catalysts
The stock's ascent occurs amid a complex backdrop. On one hand, pharmacy benefit managers are exerting pressure on established products. CVS Health's Caremark unit announced it will remove Amgen's osteoporosis drug Prolia from certain preferred formularies starting April 1, opting for lower-cost biosimilar alternatives. This move highlights the ongoing cost containment efforts within the healthcare system.
Conversely, investor optimism appears tied to Amgen's pipeline, particularly its experimental obesity treatment, MariTide. Company executives have highlighted the potential of this long-acting candidate, which is being studied for administration as infrequently as every three months, as a significant market opportunity.
Broader Market and Policy Watch
Investor focus now shifts to macroeconomic indicators and policy. Key U.S. consumer price index data scheduled for release on February 13 is anticipated to influence bond yields and sectors like healthcare. Furthermore, recent initiatives, such as a new federal website aimed at highlighting lower drug prices for cash-paying patients, keep drug pricing in the spotlight. Amgen's cholesterol drug Repatha is listed on that portal.
Looking ahead, the market will watch whether Amgen can sustain its momentum above the $380 level. The April 1 implementation of Caremark's formulary changes will provide an early indicator of biosimilar adoption's impact on Prolia. Meanwhile, clinical progress for MariTide in late-stage trials remains a critical factor for the stock's longer-term trajectory, with obesity drug developments known to trigger significant share price movements.
