Amgen Stock Declines on HSBC Downgrade, Lingering Pipeline Concerns

Amgen (NASDAQ: AMGN) shares slipped more than 2.2% in afternoon trading, pressured by a fresh analyst downgrade that compounded investor concerns about the company's long-term growth prospects and a key cardiovascular drug candidate.

HSBC Cites Valuation and Growth Timing

HSBC downgraded Amgen stock from Buy to Hold and cut its price target to $425 from $445. The bank's analysts argued that after a period of strong performance and upward earnings revisions, the stock is now trading around its fair value, leaving limited near-term upside.

The research note also highlighted potential headwinds for revenue growth, which HSBC expects to be capped in the low single digits due to steady patent expiries. Furthermore, the bank noted that major pipeline assets expected to drive significant value—including the weight-loss candidate MariTide, cardiovascular drug olpasiran, and oncology therapy Imdelltra—are not expected to be major contributors until late 2027.

Fallout from Competitor Trial Continues

The HSBC action follows a similar move earlier in the week from BMO Capital Markets, which cut Amgen to Market Perform. That downgrade was prompted by news that a pivotal Phase III study for Novartis's Lp(a)-lowering drug, pelacarsen, failed to show a benefit in reducing major adverse cardiovascular events.

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The Novartis result has created a significant overhang for Amgen's olpasiran, which targets the same Lp(a) biomarker and is currently in its own Phase III outcomes trial. The competitor's failure has raised class-wide concerns, with Barclays analyst Emily Field describing the Novartis data as "the worst possible outcome for Amgen."

Broader Context

Amgen's decline also occurred amid a broader market downturn, with the S&P 500 and Dow Jones Industrial Average both trading lower. While the pipeline uncertainty weighs on the stock, Amgen recently presented positive survival data for its small-cell lung cancer therapy, Imdelltra, prompting analysts at William Blair and Piper Sandler to reaffirm their Buy ratings.

Still, the combination of the new institutional downgrade and the unresolved questions surrounding its Lp(a) program has kept the stock under pressure, trading well below its 52-week high of $447.03.