Valuation method | Value, $ | Upside, % |
---|---|---|
Artificial intelligence (AI) | 288.93 | -6 |
Intrinsic value (DCF) | 15.29 | -95 |
Graham-Dodd Method | n/a | |
Graham Formula | 195.97 | -36 |
Amgen Inc. (NASDAQ: AMGN) 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 include Enbrel (for autoimmune diseases), Prolia (osteoporosis), Repatha (cardiovascular risk reduction), and Otezla (psoriasis and psoriatic arthritis). Amgen serves healthcare providers through wholesale distributors and direct-to-consumer channels, ensuring broad market access. With strategic collaborations with Novartis, Bayer, BeiGene, and others, Amgen continues to expand its pipeline in high-growth areas like KRAS-targeted oncology and autoimmune therapies. As a pioneer in biologics, Amgen maintains a strong R&D focus, leveraging cutting-edge science to address unmet medical needs. Its diversified portfolio and global reach position it as a key player in the $1.5T+ biopharmaceutical industry.
Amgen presents a compelling investment case due to its diversified biologics portfolio, strong cash flow generation ($11.5B operating cash flow in FY2023), and robust pipeline in high-value therapeutic areas. The company’s dividend yield (~3.2%) and consistent EPS growth (diluted EPS of $7.56 in FY2023) appeal to income-focused investors. However, risks include patent expirations (e.g., Enbrel faces biosimilar competition) and high leverage ($60.1B total debt). Amgen’s recent acquisitions (e.g., Horizon Therapeutics) bolster its inflammation/rare disease pipeline but increase integration risks. With a low beta (0.497), AMGN offers defensive exposure to healthcare but may lag in high-growth biotech rallies.
Amgen’s competitive advantage lies in its deep expertise in biologics manufacturing, a moat reinforced by complex production processes and regulatory barriers. Unlike small-molecule drugmakers, Amgen’s large-molecule therapies face fewer immediate generic threats, though biosimilars are a growing risk. The company’s direct-to-consumer capabilities (e.g., Repatha’s DTC marketing) differentiate it from peers reliant on wholesale distribution. In oncology, Amgen’s KRAS inhibitor Lumakras (sotorasib) faces competition from Mirati’s Krazati, but its broader pipeline (e.g., BLINCYTO in hematology) provides diversification. Amgen lags behind Roche and Novartis in total revenue but outperforms in operating margins (~30%) due to cost discipline. Its late-stage neuroscience partnership with Neumora could disrupt Lilly and Biogen’s Alzheimer’s dominance. However, Amgen’s smaller size versus Pfizer limits its vaccine/COVID-19 revenue upside.