Amgen’s stock paces the Dow’s decliners after analyst downgrade in wake of disappointing trial results

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Shares of Amgen Inc. dropped 1.8% in morning trading Friday, enough to pace the Dow Jones Industrial Average’s decliners, after Truist analyst Robyn Karnauskas downgraded the biotechnology company, citing disappointing trial results of its treatment for heart failure. Karnauskas cut her rating to hold from buy, and lowered her stock price target to $251 from $268. The stock had tumbled 6.8% on Thursday, after Amgen and Cytokinetics Inc. said omecamtiv mecarbil (OM) met the primary endpoint of a Phase 3 trial, but said no reduction in in the secondary endpoint of cardiovascular death was observed. Cytokinetics stock fell 5.1% Friday, after plummeting 42.1% on Thursday. Karnauskas said while she awaits clarity on the commercial viability from additional subgroup analyses next month, she is lowering her peak unadjusted sales estimate for OM to about $1 billion from about $3.8 billion. Amgen’s stock has slipped 2.2% year to date, while the SPDR Health Care Select Sector ETF has gained 6.0% and the Dow has inched down 0.2%.
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