Can someone make sense of Amgen (AMGN) right now? Does anyone see light at the end of the tunnel?
Amgen has been hit hard with the stock seeing sharp declines. As the worlds largest bio-technology company I have been waiting for some type of positive information on the company. Just when things are looking up they seem to find new problems. I am not bio-tech guru so I wanted to know from someone that knows the industry if they see Amgen making a comeback ,or if I should just forget them?
Best Answer
1130 points
sundarkambam answered 2 years ago …
There is another view from the respected morningstar :
Amgen (AMGN)
Amgen was another victim of 2007, albeit for reasons completely unrelated to housing. Safety concerns over the company's best-selling anemia drugs led to strict Medicare reimbursement restrictions and plummeting sales. We think the company's wide moat is intact and will persist through the next decade. Amgen has best-in-class research, sales, and manufacturing capabilities, which give it a significant advantage when in-licensing new drugs from smaller competitors or developing treatments in house. Thanks to patent protection, insurance coverage, and the life-saving nature of many of its products, Amgen has pricing power and sustainably high margins. Aging populations in the United States, Europe, and Japan add a demographic stimulus, while the company's deep pipeline promises to fill the gap left by its embattled anemia franchise.
Answers
1130 points
sundarkambam answered 2 years ago …
Right now any gains in Amgen's shares are because of Cost efficiencies rather than any revenue side increase.
Their blockbuster Anemia drug is not exactly capturing public's mind or the FDA's good wishes.
They are coming out with new products in 2008 and only time will tell whether these can fire up the revenue side.
Better wait for some developments before you start buying the Amgen shares.
Wait till June when Amgen does it's Annual business review.
