Amgen's Imdelltra Sales Surge 115% as Lung-Cancer Combination Meets Major Goals

HSBC adjusted ratings for biopharma stocks, citing high multiples and the need for stock-specific catalysts. Novartis was upgraded to Hold with a target price of 110 CHF, while Amgen was downgraded to Hold with a target of $425. AbbVie and Bayer were kept as Buy with raised targets. The changes reflect expectations for upcoming clinical trials and legal outcomes.

Novartis (NVS) shares fell 13% after two failed clinical trials, one for a muscle loss disease drug and another for a cholesterol-targeting drug. Amgen (AMGN) shares dropped 9%, impacting the Dow, as it develops a similar cholesterol drug. Novartis expects 5-6% annual sales growth through 2030. Both companies' stocks were affected by the trial results.

AstraZeneca (AZN) and Amgen (AMGN) reported positive Phase III trial results for their co-developed asthma drug, TEZSPIRE. AZN's Q2 revenue rose 6% to $15.38B, with strong growth in Oncology and Rare Disease, while AMGN's revenue increased 10% to $10.1B but faced biosimilar pressure on mature products. AZN shows stronger EPS growth and portfolio momentum, while AMGN has robust key product growth and raised its 2026 revenue guidance.

Novartis' late-stage trial for a cholesterol drug failed to prevent heart problems, despite lowering lp(a) levels, impacting Novartis and rivals like Amgen. Agco's CEO suggested potential year-round ethanol requirements, while PNC Financial's CIO warned of risks from Fed rate hikes. Diesel prices neared $6/gallon, and AI advancements were highlighted.

AstraZeneca's Imfinzi and Amgen's Imdelltra combination showed significant improvement in overall survival for frontline extensive-stage small cell lung cancer (ES-SCLC) in a Phase III trial, meeting primary and secondary endpoints. The companies plan to share data with regulators, which could expand Imdelltra's market potential. Analysts forecast peak sales of over $10bn for Imfinzi and $3bn for Imdelltra by 2026-2032.

Amgen (AMGN) and AstraZeneca (AZN) reported positive results from a late-stage trial of their combined drug treatment for extensive-stage small-cell lung cancer. The combination of Amgen's Imdelltra and AstraZeneca's Imfinzi showed improved survival rates and response rates compared to Imfinzi alone. Imdelltra generated $513 million in sales for Amgen last year, accounting for 23% of its total revenue.