The UK Medicines and Healthcare products Regulatory Agency (MHRA) has approved drugmaker Amgen’s (AMGN) tarlatamab (Imdyllytra) to treat small cell lung cancer (SCLC) that has spread within the lungs or to other parts of the body. This approval, under Project Orbis, fast-tracks promising cancer treatments through international collaboration. SCLC is an aggressive type of lung cancer that affects about 1 in 7 lung cancer patients and often has limited treatment options.
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Tarlatamab works by targeting and killing rapidly dividing cancer cells. It’s for patients who have already tried two other treatments that didn’t work or stopped working. The drug is given through an IV that starts with three doses in the first three weeks, followed by biweekly doses. In trials, tarlatamab showed a 40% response rate, with effects lasting about 9.7 months, which offers hope for patients with advanced SCLC.
MHRA official Julian Beach praised Project Orbis for speeding up access to new cancer treatments. The MHRA will continue monitoring the drug’s safety and effectiveness.
A Weight-Loss Drug Competitor
Separately, Amgen also competes in the weight-loss drug market with MariTide, which is designed as a once-monthly treatment option. This differentiates it from competing options that require more frequent treatments. Recently, UBS analyst Trung Huynh said that Novo Nordisk’s (NVO) Phase 3 CagriSema obesity data could potentially benefit Amgen and Eli Lilly (LLY). CagriSema delivered an average weight loss of 20.4%, falling short of Novo’s 25% target and lagging behind Lilly’s tirzepatide.
UBS also noted that CagriSema’s performance now appears more aligned with Amgen’s MariTide. However, due to the convenience of MariTide, along with the gastrointestinal tolerability challenges of CagriSema, MariTide could benefit from its more patient-friendly approach and potentially make it a more attractive alternative in the obesity treatment space.
Is AMGN a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AMGN stock based on 11 Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 7% decline in its share price in 2024, the average AMGN price target of $340.76 per share implies 31.3% upside potential.
