UBS Raises Amgen (AMGN) Target as Pharma and Biotech Setup Improves

Amgen Inc. (NASDAQ:AMGN) is included among the 12 Best Dow Jones Dividend Stocks to Buy According to Hedge Funds.

On January 26, UBS lifted its price target on Amgen Inc. (NASDAQ:AMGN) to $390 from $380 and kept a Buy rating on the stock. The call reflects a more constructive view on the broader US pharma and biotech space. UBS expects the group to hold up well this year. Valuations are still appealing, investor positioning remains light, and some of the pressure around drug pricing has started to ease. Add in steady pharma-led M&A activity, which often spills over into biotech, and the setup looks supportive. Even with worries that guidance could turn cautious after the recent rally, UBS argues that big pharma and biotech still look cheap enough to keep money flowing into the sector.

Earlier this month, Amgen CEO Bob Bradway spoke with CNBC’s Jim Cramer and shared his optimism around the company’s obesity drug. He said long-term weight management is one of the hardest challenges in this space, and that is where Amgen believes it can make a difference.

On January 12, Amgen said a trial of its experimental GLP-1 drug, MariTide, showed patients were able to maintain weight loss for up to two years with a monthly injection. That stands out, since most weight-loss drugs on the market today are taken weekly.

Bradway told Cramer the company believes MariTide could eventually be dosed monthly or even less often. He pointed to early data suggesting a quarterly option may be possible. Amgen is also testing a range of doses to figure out what works best over the long haul. As Bradway put it, keeping patients on therapy is critical. Persistence, he said, is everything.

He also commented on Amgen’s acquisition of Horizon Therapeutics, noting that the deal has been working well so far. According to Bradway, Horizon fits naturally with Amgen’s strengths, particularly in biologics and autoimmune diseases.

Amgen Inc. (NASDAQ:AMGN) is a biotechnology company that develops, manufactures, and delivers medicines aimed at some of the most challenging diseases, with a focus on areas where medical needs remain high.

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