Amgen slips on eczema drug results

Amgen stock dipped early after producing results from two recent drug studies.
A drug that treats atopic dermatitis appeared less useful compared with Sanofi's current drug.
Dow Jones sinks despite US housing stats showing better than expected New Home Sales.
Positive results also followed Phase 3 trial of Uplizna.

Clay Webster FXStreet

Amgen (AMGN) stock slid more than 4.5% at the start of Wednesday trading after the pharmaceutical giant reported the results of several drug trials.

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

US housing data early in the session showed that mortgage applications were rising. Additionally, New Home Sales in the US fell 4.7% MoM but were not as bad as expected.

Amgen stock news

Amgen released results from two studies late Tuesday after the market close, both of which proved positive.

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

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

However, this last study was the negative issue for investors. The Sanofi-created and Regeneron-marketed Dupixent drug, which is focused on the same use case, achieved figures of 51% and 44% during its two Phase 3 studies compared with Amgen’s 33%. Hence, Amgen’s drug works but not quite as well as that of its competitors.

In reporting by industry website Fierce Biotech, Amgen Executive Vice President Murdo Gordon was not dissuaded. Gordon said that more than one drug was needed to meet the needs of patients in the atopic dermatitis market and that Amgen’s data suggested that doctors often switch prescriptions early on in treatment. Rocatinlimab’s use of a different mechanism for treatment might also persuade some physicians, according to Gordon.

Amgen stock forecast

Amgen stock is up 9.5% year to date and 24% over the past year despite dropping to $315 on Wednesday. Seeing as the pharma stock slid easily below the 100-day Simple Moving Average (SMA) on Wednesday, it could be foolish to think that the 200-day SMA might hold, which is now near $302.

If it fails to hold, then traders will look to $296, which held up earlier this summer. Below there is resistance turned support at $260, which was treated with respect throughout 2023. However, a break back above $320 would put an end to bearish sentiment.

AMGN daily stock chart

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

AUD/USD tests 0.7000 as RBA hike looms amid risk-off mood

The Australian Dollar began the week on a lower note against the US Dollar, at around 0.7000, as depicted in the AUD/USD daily chart, as investors brace for the Reserve Bank of Australia monetary policy decision following optimistic US economic data.

USD/JPY climbs to 158.00 neighborhood as BoJ uncertainty weighs on the JPY

The USD/JPY pair gains some positive traction at the start of a new week, recovering further from Friday's post-Bank of Japan (BoJ) swing low to sub-157.00 levels. The momentum lifts spot prices to the 158.00 neighborhood during the Asian session and seems unaffected by fresh intervention warning from Japan's Finance Minister Satsuki Katayama.

Gold recovers on positive US-Iran headlines

Gold extends its recovery during American trading hours on Monday, supported by falling Oil prices following positive headlines on US-Iran talks. The metal regains ground after hitting a fresh yearly low of $3,870 on Friday and ending October down 6.87%. However, the rebound lacks conviction as the fundamental backdrop continues to raise doubts over a sustained recovery.

RBA expected to raise interest rate to 4.85%

The Reserve Bank of Australia will announce its monetary policy decision on Tuesday and is widely anticipated to raise the Official Cash Rate by 25 basis points to 4.85% from 4.6%. If the RBA delivers as expected, it will be the fifth interest rate hike of 2026, and the OCR will hit an 18-year high.

Strong iPhone sales fortify Apple's Q4 result

A robust fourth-quarter for Apple's iPhone sales helped the tech titan beat Wall Street's consensus on Monday. Apple reported $57.58 billion in iPhone sales in Q4, beating the average analyst estimate by more than a billion. However, AAPL stock shed close to 4% afterhours despite the top and bottom line beat.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.