Amgen (AMGN) shareholders are having a rough Tuesday. The biotech giant's stock is down more than 9% as investors digest the fallout from a rival's failed clinical trial. The culprit? Novartis (NVS) announced Friday that its experimental drug pelacarsen, designed to lower lipoprotein(a) — or Lp(a), a genetic risk factor for heart disease — missed its primary goal in a Phase 3 trial. The drug didn't significantly reduce major cardiovascular events compared to placebo.
That's a big deal, not just for Novartis, but for the entire field of Lp(a)-lowering drugs. If lowering Lp(a) doesn't actually translate into fewer heart attacks and strokes, what's the point? That's the existential question now hanging over similar programs, including Amgen's own candidate, olpasiran.
Amgen's olpasiran is an experimental small interfering RNA (siRNA) designed to lower Lp(a) and is currently in Phase 3 trials for patients with atherosclerotic cardiovascular disease. But here's a key nuance: pelacarsen and olpasiran work differently. Pelacarsen is an antisense oligonucleotide, while olpasiran uses siRNA technology. Different mechanisms, same target. The market, however, isn't in a mood to split hairs today.
Technical Damage Check
Tuesday's selloff pushed Amgen below some closely watched technical levels. The stock is now trading 8.7% below its 20-day simple moving average of $430.22 and 1.2% below its 50-day SMA of $397.75. That's short-term pain.
But zoom out, and the picture isn't all doom and gloom. Amgen remains 6.5% above its 100-day SMA of $368.99 and 9.5% above its 200-day SMA of $358.69. In plain English, the longer-term uptrend is still intact, even if the recent pullback stings.
Momentum, though, has clearly weakened. The MACD is below its signal line, and the histogram is negative — both signs that buying pressure has faded. On the bright side, Amgen is still in a longer-term bullish setup, thanks to a golden cross that occurred back in November 2025.
Looking ahead, near-term resistance sits around $398, right near the 50-day SMA. If selling continues, the 200-day SMA near $359 could act as a key support level. That's a wide range, but it gives traders a roadmap.
What Analysts Are Saying
Wall Street is taking a cautious stance. Amgen currently carries a Hold consensus rating, with an average price target of $398.52. That's roughly in line with where the stock is trading now, suggesting analysts see limited upside in the near term.
On Tuesday, BMO Capital downgraded Amgen to Market Perform but kept its price target at $450. Cantor Fitzgerald maintained its Neutral rating and $400 forecast. Wells Fargo, meanwhile, held its Equal-Weight rating and raised its target to $435 on Sept. 4. So, while the downgrade grabs headlines, not everyone is running for the exits.
The ETF Angle
Amgen isn't just a stock; it's a significant piece of several popular ETFs. The iShares Biotechnology ETF (IBB) has an 8.46% weighting in the stock. The Invesco Pharmaceuticals ETF (PJP) holds a 5.34% weighting, and the Amplify CWP Enhanced Dividend Income ETF (DIVO) has a 4.94% weighting.
That matters because when money flows into or out of these funds, it can amplify trading activity in Amgen shares. So, if you're watching the stock, keep an eye on ETF flows too.
Where Things Stand
At the time of publication Tuesday, Amgen shares were down 9.51% at $395.65. The immediate trigger is clear, but the longer-term implications for the Lp(a) space are still unfolding. For now, investors are left to weigh the technical support levels, analyst price targets, and the broader question of whether this class of drugs can deliver on its promise.
