Amgen (NASDAQ: AMGN) Faces Downgrade Amidst Novartis Clinical Trial Setback: A Biopharmaceutical Stock Analysis

• Investment firm BMO Capital downgraded Amgen (NASDAQ: AMGN) stock from "Outperform" to "Market Perform," signaling expected market-aligned performance.
• A significant clinical trial failure by Novartis (NYSE: NVS) for a similar drug has raised concerns for Amgen's own development in the multi-billion dollar Lp(a) cholesterol market.
• Despite a recent 5% drop in shares following the news, Amgen has demonstrated strong year-to-date performance with a 36.30% rally, significantly outperforming the industry.

Amgen (NASDAQ: AMGN) is a leading biopharmaceutical company that discovers, develops, and delivers human therapeutics. The company focuses on areas of high unmet medical need to treat serious illnesses. With a market capitalization of approximately $235.98 billion, it is a major player in the pharmaceutical industry, competing with other large drugmakers like Novartis (NYSE: NVS) and Eli Lilly and Company (NYSE: LLY).

On September 8, 2026, investment firm BMO Capital downgraded Amgen stock from "Outperform" to "Market Perform." This change suggests analysts believe the stock will now likely perform in line with the overall market, rather than exceeding it. At the time of the rating change, the company's stock price was $437.23.

This downgrade follows a significant clinical trial setback for a Swiss rival. As highlighted by Barrons, this development is impacting Amgen and other drugmakers. Novartis' experimental drug, pelacarsen, failed to meet its main goal in a late-stage Phase III study, which tests a drug's effectiveness on a large group of people before it can be approved.

The failure of Novartis' drug creates uncertainty for Amgen, which is developing its own drug, olpasiran, for the same condition. As noted by CNBC, this increases the risk for a potential multi-billion dollar market targeting high Lp(a) cholesterol. Following the news, Amgen shares fell 5% in after-hours trading as investors grew more cautious about the biotech news.

Despite the recent drop, Amgen shares have performed well over the year. The stock has seen a year-to-date rally of 36.30%, which is significantly higher than the industry's 11.10% rise. On the day of the downgrade, the stock traded between a low of $435.01 and a high of $441.66.