investorscraft@gmail.com

Stock Analysis & ValuationAmgen Inc. (AMG.DE)

Professional Stock Screener
Previous Close
287.30
Sector Valuation Confidence Level
High
Valuation methodValue, Upside, %
Artificial intelligence (AI)228.40-21
Intrinsic value (DCF)121.21-58
Graham-Dodd Methodn/a
Graham Formula170.90-41

Strategic Investment Analysis

Company Overview

Amgen Inc. (AMG.DE) is a global biotechnology leader specializing in the discovery, development, and commercialization of innovative human therapeutics. Headquartered in Thousand Oaks, California, Amgen focuses on critical therapeutic areas, including inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience. The company's flagship products, such as Enbrel, Neulasta, Prolia, and Repatha, address significant unmet medical needs, serving healthcare providers, hospitals, and pharmacies worldwide. Amgen distributes its products through wholesale pharmaceutical distributors and direct-to-consumer channels, ensuring broad market access. With strategic collaborations with industry giants like Novartis, Bayer, and BeiGene, Amgen continues to expand its pipeline and strengthen its position in the biopharmaceutical sector. The company's robust R&D efforts and diversified product portfolio make it a key player in the global healthcare industry, driving advancements in treatment options for chronic and life-threatening diseases.

Investment Summary

Amgen Inc. presents a compelling investment opportunity due to its strong portfolio of biologic medicines, consistent revenue streams, and strategic collaborations. The company's diversified product lineup, including blockbuster drugs like Enbrel and Repatha, provides stable cash flows, while its robust pipeline offers growth potential. However, investors should be mindful of risks such as patent expirations, biosimilar competition, and high debt levels (€60.1 billion). Amgen's solid operating cash flow (€11.49 billion) and commitment to dividends (€8.49 per share) enhance its appeal to income-focused investors. With a market cap of €128.75 billion and a beta of 0.497, Amgen is a relatively stable stock in the volatile biotech sector, suitable for long-term investors seeking exposure to innovative healthcare solutions.

Competitive Analysis

Amgen Inc. holds a competitive edge in the biotechnology sector through its strong portfolio of biologic drugs, extensive R&D capabilities, and global commercialization infrastructure. The company's focus on complex biologic therapies differentiates it from traditional pharmaceutical firms, as biosimilars face higher barriers to entry. Amgen's strategic acquisitions, such as the Horizon Therapeutics deal, expand its reach in rare diseases and inflammation. However, competition is intense, with rivals like Roche and Novartis leveraging their broader portfolios and stronger financial resources. Amgen's late-stage pipeline, including treatments for atopic dermatitis (KHK4083) and KRAS-mutant cancers (VS-6766), positions it well for future growth. The company's ability to maintain pricing power and navigate regulatory hurdles will be critical in sustaining its competitive advantage. While Amgen's debt load is a concern, its strong cash flow generation supports ongoing innovation and shareholder returns.

Major Competitors

  • Roche Holding AG (ROG.SW): Roche is a global leader in oncology and diagnostics, with a strong portfolio including blockbusters like Herceptin and Avastin. Its diagnostics division provides a competitive edge in personalized medicine. However, Roche faces biosimilar competition for key drugs, similar to Amgen. Roche's larger scale and integrated diagnostics business give it broader revenue diversification.
  • Novartis AG (NOVN.SW): Novartis has a diversified portfolio spanning innovative medicines, generics (Sandoz), and eye care (Alcon). Its strong pipeline in cardiovascular and immunology competes directly with Amgen's focus areas. Novartis's recent spin-off of Sandoz allows greater focus on high-margin innovative drugs, but it lacks Amgen's deep specialization in biologics.
  • Bristol-Myers Squibb (BMY): Bristol-Myers Squibb is a key competitor in oncology and cardiovascular therapeutics, with blockbusters like Opdivo and Eliquis. Its strong immuno-oncology platform competes with Amgen's oncology portfolio. However, BMY faces significant patent cliffs in the coming years, similar to Amgen's challenges with Enbrel.
  • AstraZeneca (AZN): AstraZeneca has a robust pipeline in oncology, cardiovascular, and respiratory diseases, with strong growth in emerging markets. Its COVID-19 vaccine diversified revenue streams but competes less directly with Amgen's core biologics focus. AstraZeneca's larger geographic reach and vaccine capabilities provide broader revenue stability compared to Amgen.
  • Regeneron Pharmaceuticals (REGN): Regeneron is a fast-growing biotech with strengths in immunology and oncology, similar to Amgen. Its blockbuster drug Eylea and Dupixent (with Sanofi) compete indirectly with Amgen's inflammation portfolio. Regeneron's innovative pipeline and strong R&D capabilities make it a formidable competitor, though it lacks Amgen's scale and commercial infrastructure.
HomeMenuAccount