Shares of Amgen Inc. (AMGN) declined 1.8% during Monday's trading session, closing at $377.28. This drop contributed to downward pressure on the Dow Jones Industrial Average, where Amgen's high share price amplifies its impact due to the index's price-weighted methodology. The biopharmaceutical giant's stock traded between $372.39 and $384.96, retreating from its previous close of $384.32.
Regulatory and Commercial Headwinds
The decline follows significant company-specific developments. In January, the U.S. Food and Drug Administration requested a voluntary withdrawal of Tavneos, Amgen's therapy for a rare disease, citing concerns over specific trial data and potential liver safety. The company has informed healthcare providers it does not currently intend to comply as it seeks a resolution. Furthermore, the firm reported a stark 48% year-over-year sales decline for its mature autoimmune drug Enbrel during the fourth quarter. Management attributed this plunge to lower net selling prices stemming from Medicare Part D policy changes and increased utilization through the federal 340B discount program.
Broader Market Context and Obesity Drug Dynamics
Amgen's performance occurred amid a mixed day for healthcare equities. While the Health Care Select Sector SPDR Fund (XLV) dipped approximately 0.7%, the SPDR S&P Biotech ETF (XBI) held relatively steady. The session also saw renewed activity in the competitive obesity drug market. Telehealth provider Hims & Hers announced plans to discontinue sales of its compounded semaglutide, coinciding with a lawsuit filed by Novo Nordisk (NVO). This highlights escalating legal and regulatory scrutiny around copycat versions of popular GLP-1 medications.
Amgen itself is a contender in this high-stakes arena. Last week, while reporting fourth-quarter results that exceeded Wall Street estimates and providing its 2026 outlook, commercial chief Murdo Gordon highlighted patient "dissatisfaction with the weekly GLP-1s." He positioned Amgen's experimental candidate MariTide, which may be dosed as infrequently as once every three months, as a potential "paradigm-changing opportunity." Analyst Geoffrey Meacham of Citi Research viewed the company's guidance as suggesting "modest upside."
Earnings Realities and Future Challenges
Beyond Enbrel, Amgen signaled expectations for steeper sales declines in 2026 for other key products, including Prolia and Xgeva. The company cited the impending global entry of biosimilar competitors—essentially generic versions of complex biologic drugs—as a primary driver. These forecasts underscore the ongoing challenge of managing a matifying product portfolio while investing in new growth drivers like MariTide.
Macroeconomic Data in Focus
Market participants are now pivoting attention to major U.S. economic indicators scheduled for release later this week. The January jobs report from the Labor Department is due on Wednesday, February 11, at 8:30 a.m. ET. This will be followed by the Consumer Price Index (CPI) report for January on Friday, February 13, also at 8:30 a.m. ET. Analysts suggest that surprises in either dataset, particularly the inflation reading, could trigger volatility in Treasury yields, potentially creating knock-on effects for defensive sectors like major pharmaceuticals. In the current jumpy market environment, traders appear quick to reduce exposure even in traditionally stable healthcare names ahead of such pivotal data.
Monday's trading reflected a cautious stance, with Amgen ranking among the Dow's notable laggards alongside peers like Merck & Co. (MRK). The broader tape demonstrated that while select biotech names showed resilience, established drugmakers faced selling pressure as investors recalibrated positions ahead of macroeconomic catalysts that could influence interest rate expectations and sector rotations.
