Amgen downgraded to Neutral at Bank of America
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Amgen (AMGN
-0.7%) was downgraded by Bank of America to Neutral from Buy with a price target of $255, down from $285.
BofA analyst Geoff Meacham said the stock has underwhelmed in 2021 due to lingering COVID-19 headwinds and net pricing pressures, and "growth skepticism" is likely to persist until the company demonstrates a clear return to "strong, volume-driven revenue upside" for several of its key franchises.

The chart below shows 1-year total return performance of Amgen and its peers Moderna and Gilead Sciences against SP500TR:

Meacham noted that Amgen growth is more likely to be in-line with its peers even with a broader Otezla label and a strong rollout of Lumakras and Tezspire drugs.
In December, the U.S. FDA approved the expanded use of Otezla (apremilast) to include patients with plaque psoriasis of all severities.
In Q3, Worldwide sales of Otezla amounted to $609M, while Lumakras generated $36M.