Amgen falls on eczema drug results

• Amgen shares fell early after results from two recent drug studies.
• A drug that treats atopic dermatitis appeared less helpful compared with Sanofi’s current drug.
• The Dow Jones plunges despite US housing statistics showing better than expected new home sales.
• Positive results also followed the Phase 3 trial of Uplizna.

Amgen (AMGN) fell more than 4.5% in early trading on Wednesday after the pharmaceutical giant reported results from several drug trials.

He Dow Jones Industrial Average (DJIA)of which Amgen is a member, fell 0.4% against a backdrop of improving NASDAQ. The DJIA has been choppy all week.

US housing data at the start of the session showed mortgage applications were rising. In addition, US new home sales fell 4.7% month-on-month but were not as bad as expected.

Amgen Stock News

Amgen released results from two studies on Tuesday afternoon after the market closed, both of which were positive.

First, its Phase 3 trial for Uplizna, a drug that treats IgG4-type diseases, showed an 87% reduction in IgG4-RD flares. It also met all three secondary endpoints. Uplizna has been approved to treat neuromyelitis optica spectrum disorder.

Second, its Phase 3 study of rocatinlimab, which treats atopic dermatitis, was statistically significant. After 24 weeks of treatment, nearly 33% of patients saw at least a 75% improvement in eczema severity.

However, the latter study was the negative issue for investors. Sanofi-based drug Dupixent, marketed by Regeneron and targeting the same use case, achieved 51% and 44% during its two Phase 3 studies compared to Amgen’s 33%. So Amgen’s drug works, but not as well as its competitors’.

In a report on industry website Fierce Biotech, Amgen Executive Vice President Murdo Gordon was undaunted. Gordon said more than one drug was needed to meet patient needs in the atopic dermatitis market and that Amgen’s data suggested that doctors often change prescriptions at the start of treatment. Rocatinlimab’s use of a different mechanism for treatment might also persuade some doctors, according to Gordon.

Amgen Stock Forecast

Amgen shares are up 9.5% year to date and 24% over the past year despite falling to $315 on Wednesday. Given that the pharmaceutical stock easily fell below the 100-day simple moving average (SMA) on Wednesday, it might be unwise to think that the 200-day SMA could hold, which is now near $302.

If it doesn’t hold, then traders will look to $296, which held earlier this summer. Below that is resistance-turned-support at $260, which was treated with respect throughout 2023. However, a break above $320 would put an end to the bearish sentiment.

AMGN daily stock chart