The Biggest Loser: Amgen Drops 6.4%
Barry Davis
Owner of HoTstocks.NYC with 59Years Experince, Most similar to Cramer on Wall Street
Shares of Amgen (AMGN) led the drop in the S&P 500 today falling almost 6.4% to close at $168.61 after the drug maker unveiled long-awaited data on its anti-cholesterol drug Repatha.
Can shares of Amgen rebound from today’s selloff?
Yes, is the answer from RBC Capital Management analyst Michael Yee. He argues that the drug maker’s share price can “grind back up” if access to Repatha increases over the next few quarters. Earlier today, Amgen released data from an outcome study that missed expectations, leading some analyst to predict that health plans will continue to restrict access to the drug.
As Yee writes:
A number of key developments midday at the ACC conference that should shed increased confidence that Repatha reimbursement and utilization will continue to increase over time driving a new growth driver for AMGN and increased confidence in a new product cycle. If reimbursement does start to open up over next few quarters (tracking IMS scripts and other datapoints) and AMGN manages their execution on quarters/guidance – stock should recover off today’s overreaction reflecting high expectations