Amgen, a leading American pharmaceutical company, recently launched a platform called AmgenNow. The release featured a significant price reduction on its cholesterol medication, Repatha, which saw a 60% discount. Despite this initiative, investor reactions have been subdued, leading to a decline in Amgen’s stock value.
Amgen’s Cholesterol Drug Price Cut
On Monday, Amgen announced that Repatha will be available for $239 per month, a stark reduction from its previous pricing. This new cost marks the lowest price for Repatha among G7 nations.
Accessibility and Direct Purchases
- AmgenNow will cater to all patients, including those on government health programs like Medicare and Medicaid.
- Patients purchasing through AmgenNow won’t need insurance or to try less expensive medications first, unlike standard insurance requirements.
Market Implications
The price cut aligns with the current push within the healthcare industry for more affordable medications. This launch follows a similar move by Pfizer, which recently lowered prices and secured a tariff exemption under the Trump administration. The U.S. government is keen on making pharmaceuticals more accessible, as indicated by recent statements and initiatives aimed at price reductions.
Investor Sentiment
Despite strategic moves to boost accessibility, Amgen’s stock has been under pressure. Analysts maintain a Moderate Buy recommendation for Amgen’s stock, showing a consensus of eight Buys, 11 Holds, and one Sell from 20 analysts. The average target price is set at $323.76, suggesting a potential upside of about 10% from current prices.
Conclusion
Amgen is taking significant steps to enhance the availability of its cholesterol drug while addressing market pressures. As the company navigates these changes, its future performance will depend on broader market reactions and the effectiveness of its new pricing strategies.
