Street View: Amgen's ChemoCentryx buy makes sense for robust growth

Churchill Capital XI

05/08/2022 16:36

**  Amgen  AMGN.O  on Thursday agreed to buy ChemoCentryx
 CCXI.O  for $3.7 bln to gain access to a potential blockbuster
treatment, Tavneos, for inflammatory disorders and beat
quarterly revenue estimates on demand for its bone disease drug
 urn:newsml:reuters.com:*:nL4N2ZG35G
    
    PIPELINE BOLSTERED
    ** Jefferies ("buy", PT: $295) says deal for CCXI is
consistent with bolt-on M&A strategy, adding that while growth
remains "arguably murky" ahead, AMGN remains a good defensive
stock
    ** Cowen and Company ("outperform", PT: $286) says CCXI
deals makes sense and should offer synergistic boost to AMGN's
"already strong" inflammation and nephrology portfolio
    ** Brokerage adds it sees near-term risks to arthritis drug
Enbrel and kidney drug Sensipar from generic challengers, but
new product launches are providing new growth prospects
    ** Morgan Stanley ("equal weight", PT: $257) believes AMGN
can protect its key franchises from biosimilar competition in
near term
    ** Piper Sandler ("overweight", PT: $265) says the more it
looks at CCXI deal, the more it likes it and believes Tavneos'
dual specialist nature in nephrology and rheumatology uniquely
positions AMGN to maximize its potential
    ** RBC Capital Markets ("sector perform", PT: $236) cautions
that open questions remain on AMGN as a safe haven and finding
growth to sustain strength

 (Reporting by Pushkala Aripaka in Bengaluru)
 ((Pushkala.A@thomsonreuters.com ; Twitter: @pullthekart;))