Amgen slips in results for eczema drug

• Amgen's share price fell early following the publication of the results of two recent drug trials.
• A drug used to treat atopic dermatitis appeared to be less useful compared to Sanofi's current drug.
• Dow Jones falls even though US housing market statistics show better than expected new home sales.
• The phase 3 study on Uplizna also delivered positive results.

Amgen (AMGN) The stock lost more than 4.5% at the start of trading on Wednesday after the pharmaceutical giant announced the results of several drug trials.

The Dow Jones Industrial Average (DJIA)which also owns Amgen, fell 0.4% against the backdrop of a rising NASDAQ.

US housing data earlier in the session showed that mortgage applications rose. In addition, new home sales in the US fell 4.7% MoM, but were not as bad as expected.

Amgen Stock News

Amgen released the results of two studies late Tuesday after the stock market closed, both of which were positive.

First, the Phase 3 trial for Uplizna, a drug for treating IgG4-type disorders, showed an 87 percent reduction in IgG4-RD flares. In addition, all three secondary endpoints were met. Uplizna is approved for the treatment of neuromyelitis optica spectrum disorders.

Second, the Phase 3 study of Rocatinlimab, a drug used to treat atopic dermatitis. After 24 weeks of treatment, almost 33% of patients showed at least a 75% improvement in the severity of their eczema.

However, this last study was a negative for investors. Dupixent, a drug developed by Sanofi and marketed by Regeneron that targets the same use case, achieved scores of 51% and 44% in its two Phase 3 trials, compared to 33% for Amgen. So Amgen's drug works, but not quite as well as its competitors.

According to a report by industry website Fierce Biotech, Amgen's Executive Vice President Murdo Gordon was undeterred. Gordon said more than one drug was needed to meet patient needs in the atopic dermatitis market and that Amgen's data suggested doctors often change prescriptions early in treatment. Gordon said Rocatinlimab's use of a different treatment mechanism could also convince some doctors.

Amgen Stock Forecast

Amgen stock is up 9.5% year-to-date and 24% over the past year, despite falling to $315 on Wednesday. With the pharmaceutical stock slipping slightly below the 100-day SMA (simple moving average) on Wednesday, it would be foolish to think the 200-day SMA, now at $302, could hold.

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

AMGN stock chart