Why is Amgen stock sliding today?

Novartis' cholesterol drug pelacarsen, developed with Ionis, failed to improve cardiovascular outcomes in a late-stage trial, despite reducing harmful cholesterol. Novartis stock fell 3%. Amgen and Eli Lilly, developing rival treatments, also saw stock declines. Analysts note the setback raises risks for the multibillion-dollar Lp(a) treatment market. Novartis faces patent expirations, and the trial's impact extends beyond the company.

Amgen shares fell 5% after Novartis' pelacarsen failed to meet its primary endpoint in a phase III study, raising concerns about Lp(a)-lowering therapies. Amgen's olpasiran, also targeting Lp(a), is under investigation. Novartis and Ionis shares also declined. Year-to-date, Amgen shares are up 36.3%.

Amgen (AMGN) shares fell 6.8% after U.K. regulators suspended Tavneos for new patients, citing concerns about its efficacy. The FDA also proposed withdrawing the drug in the U.S., raising regulatory risks. Tavneos contributes a small portion of Amgen's revenue. Insider sales, hedge fund activity, and analyst price targets were also noted.

Amgen (AMGN) reported Repatha reduced all-cause mortality by 20% in a secondary analysis of the VESALIUS-CV trial. The study involved over 12,000 high-risk adults without prior heart attacks or strokes. Repatha also lowered cardiovascular risks and LDL-C levels. Amgen aims to expand use before first major cardiovascular events, citing 15 years of clinical trials and global use in 9 million patients.

Novartis (NVS) and Ionis (IONS) shares dropped after-hours Friday after a heart-disease trial for pelacarsen failed to show reduced risk of heart attacks or strokes, despite lowering lipoprotein(a). NVS fell 7%, IONS 10%. Amgen (AMGN) also dropped 5% as it develops a similar drug. NVS closed at $159.99. Both NVS and IONS have seen significant YTD changes, up 16% and down 27% respectively.

AstraZeneca and Amgen reported positive phase 3 trial results for tezepelumab (Tezspire) in treating eosinophilic esophagitis (EoE). The study showed improved dysphagia and histologic remission at weeks 24 and 52 compared to placebo. The companies plan to share data with regulators. Tezspire is already FDA-approved for severe asthma and chronic rhinosinusitis.