Legal Challenge Adds Pressure Ahead of Amgen’s Earnings Report

Amgen US0311621009

The biotechnology firm Amgen faces a fresh legal hurdle just days before it is scheduled to release its quarterly financial results. Investor sentiment is being weighed down by a lawsuit concerning drug pricing practices and the persistent competitive threat from biosimilar medications. The company's ability to navigate these regulatory risks while advancing its new drug pipeline will be closely scrutinized in the coming week.

All eyes are on Tuesday, February 3, when Amgen will announce its fourth-quarter and full-year 2025 earnings. Market participants are expected to concentrate on several critical areas:

• Competitive Erosion: Revenue from key products is under threat from patent expirations, which opens the door to lower-cost biosimilar competitors.
• New Product Performance: The commercial success of recently launched therapies will be judged on their ability to offset declines in the established product portfolio.
• Pipeline Development: Updates on clinical trial progress, particularly for long-term growth candidates, are vital for the stock's valuation.

Furthermore, the company has confirmed a dividend payment of $2.52 per share, scheduled for distribution on March 6. Shareholders must hold the stock through the ex-dividend date of February 13 to qualify for this payment. The earnings release on February 3 is seen as the next major catalyst for the stock's near-term direction.

Lawsuit Centers on Drug Discount Program

The new legal pressure stems from a complaint filed by Sagebrush Health Services related to the U.S. 340B program. This federal initiative requires pharmaceutical manufacturers to provide significant discounts on outpatient drugs to qualifying healthcare providers. The allegation claims that Amgen halted sales of discounted medicines and sought to recoup millions of dollars in previously granted rebates. For the company, this lawsuit represents an added layer of regulatory risk in an already challenging market environment.

Analysts Adopt a Cautious Stance

Current analyst ratings reflect a cautious and divided outlook. A majority of experts maintain a "Hold" or equivalent rating on the shares. However, January saw mixed signals from major firms: Bernstein downgraded the stock from "Outperform" to "Market Perform," while UBS reaffirmed its "Buy" recommendation, adjusting only the price target.

A significant part of the investment thesis revolves around Amgen's development pipeline. Particular attention is on the drug candidate MariTide for obesity treatment. Market observers note, however, that 2026 could be a "waiting year" for final data on this potential growth driver, tempering some of the immediate enthusiasm.