Seeking Alpha

Amgen Inc. (AMGN)

  • Nov. 22, 2014, 8:25 AM
    • Harvard Business School's Bill George is troubled by the trend of activist investors shifting their wrath to some of America’s best companies, which he says may net nice profits in the short term but places the competitiveness of America’s great global companies at risk.
    • An example is Amgen (NASDAQ:AMGN), whose stock has gained 185% in the past five years, but Dan Loeb still wants to split the company; George says this would destroy a productive innovator by taking away the cash it needs to develop new drugs and fuel growth.
    • PepsiCo’s (NYSE:PEP) 52% increase in three years is double that of Coca-Cola, yet Nelson Peltz is agitating to split the company in two, as he did with Kraft - which has struggled, as has its Mondelez spinout.
    • Peltz also is trying to break up DuPont (NYSE:DD) even though the stock has climbed 250% since Ellen Kullman became CEO in 2009; a disjointed conglomerate without a clear strategy, DuPont's stock had slipped 62% since 2000.
    • Bill Ackman successfully partnered to put Allergan (NYSE:AGN) in play, which resulted in a sale, but George says the deal was unnecessary for a stock that had gained 2,400% since David E.I. Pyott became CEO in 1998.
    • In each case, George says leaders were forced to focus on saving their companies instead of winning global competitive battles, creating great products and building new businesses.
    | Nov. 22, 2014, 8:25 AM | 40 Comments
  • Nov. 21, 2014, 7:19 AM
    • The European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) adopts a positive opinion supporting regulatory approval for Novartis' (NYSE:NVS) secukinumab for the first-line systemic treatment of adult patients with moderate-to-severe plaque psoriasis. A final decision by the European Commission usually takes about 60 days.
    • Secukinumab is an interleukin-17A inhibitor and will be sold under the brand name Cosentyx. It will compete with Amgen's (NASDAQ:AMGN) Enbrel (etanercept) which generated $4.6B in sales the past four quarters. In clinical trials, secukinumab demonstrated superiority to etanercept in skin clearance measurements.
    • Last month, an FDA advisory committee voted unanimously in favor of approval for secukinumab for the same indication.
    • Previously: Ad Comm backs approval of secukinumab
    | Nov. 21, 2014, 7:19 AM | Comment!
  • Nov. 20, 2014, 7:41 AM
    • According to IMS Health (NYSE:IMS) global drug spending will top $1T this year led by Gilead's (NASDAQ:GILD) Sovaldi (sofosbuvir) for hep C and new cancer drugs. The projected spend of $1.06T represents a 7% increase from last year.
    • By 2018, drug spending is projected to rise to $1.3T. Hepatitis C and cancer meds will add ~$100B each, while diabetes care will contribute $78B. Leading the charge in cancer will be Roche's (OTCQX:RHHBY) Perjeta (pertuzumab) and Kadcyla (ado-trastuzumab emtansine), Pharmacyclics' (NASDAQ:PCYC) Imbruvica (ibrutinib) and Amgen's (NASDAQ:AMGN) Kyprolis (carfilzomib).
    • The ever-increasing tab for meds will be controversial because payers' budgets are being stressed while drug developers defend their prices citing high development costs.
    • There is already some push back in cancer. Britain's National Institute for Health and Care Excellence (NICE), which sets guidelines for the National Health Service on costs, procedures and technologies, is balking at approving Roche's Gazyvaro (obinutuzumab) and Kadcyla citing their high cost relative to additional benefits over existing therapies.
    • Previously: Roche's Gazyvaro not NICE in the UK
    | Nov. 20, 2014, 7:41 AM | 7 Comments
  • Nov. 19, 2014, 12:35 PM
    • During the scientific sessions at the American Heart Association meeting in Chicago, investigators presented results from six Phase 3 clinical trials of Regeneron Pharmaceuticals (REGN +1.2%) and Sanofi's (SNY -0.2%) (OTCQB:SNYNF) cholesterol-lowering product candidate, alirocumab, compared to placebo or statins.
    • The trials assessed alirocumab in patients with hypercholesterolemia who were at high cardiovascular risk, had an inherited form of high cholesterol known as heterozygous familial hypercholesterolemia (HeFH) and/or a history of intolerance to two or more statins. All six studies met their primary efficacy endpoint of change from baseline in LDL-C at week 24. Patients receiving alirocumab showed a mean reduction in LDL-C from baseline of 36 - 62%, depending on the study, compared to the comparator drugs' mean reduction of 0.5 - 23%.
    • Regulatory submissions will be made to the FDA and EMA by the end of next month.
    • Alirocumab is a PCSK9 inhibitor that will compete with Amgen's (AMGN +0.2%) evolocumab for supremacy in what is expected to be a $10B post-statin market. Amgen filed its BLA in August, but Regeneron and Sanofi bought an FDA voucher for $67.5M a few months ago that will cut the FDA's review time from 10 months to six, meaning that the projected approval time for both drugs will be about the same (June).
    • Amgen filed a patent infringement lawsuit against the two firms last month.
    • Previously: Amgen sues Sanofi and Regeneron
    • Previously: FDA OK with Amgen's BLA for cholesterol-lowering drug
    • Previously: Biotechs to use priority review voucher for cholesterol-lowering drug candidate
    | Nov. 19, 2014, 12:35 PM | 4 Comments
  • Nov. 14, 2014, 12:00 PM
    • The money continues to flow out of biotech. The iShares NASDAQ Biotech Index (NASDAQ:IBB) is down 2%. The index is down almost 5% since the peak of 302.98 on October 31.
    • A sampling of moves today: (BIIB -4.3%)(CELG -3.4%)(AMGN -1.6%)(GILD -1.6%)(REGN -1.6%)(ALXN -2.3%)(VRTX -0.1%)
    | Nov. 14, 2014, 12:00 PM | 41 Comments
  • Nov. 11, 2014, 4:52 PM
    • A Phase 3 study evaluating Amgen's (NASDAQ:AMGN) brodalumab versus Janssen's (NYSE:JNJ) Stelara (ustekinumab) and placebo at week 12 in patients with moderate-to-severe plaque psoriasis met its primary endpoints. Brodalumab was superior to ustekinumab in achieving total clearance of skin disease as measured by PASI-100. Compared to placebo, a significantly greater proportion of patients treated with brodalumab achieved at least a 75% improvement from baseline in disease severity at week 12 (measured by PASI-75). All key secondary endpoints were also met.
    • Proportion of patients achieving total clearance of disease: brodalumab-210 mg: 36.7%; brodalumab-140 mg: 27.0%; Stelara: 18.5%; placebo: 0.3%.
    • Proportion of patients achieving PASI-75: brodalumab-210 mg: 85.1%; brodalumab-140 mg: 69.2%; Stelara: 69.3%; placebo: 6.0%.
    • Amgen plans to present the complete results at a future medical conference.
    | Nov. 11, 2014, 4:52 PM | Comment!
  • Nov. 11, 2014, 7:44 AM
    • Dupilumab, a fully-human monoclonal antibody being co-developed by Sanofi (NYSE:SNY) (OTCQB:SNYNF) and Regeneron Pharmaceuticals (NASDAQ:REGN), showed showed positive results in a 776-patient Phase 2b dose-ranging clinical trial in adults with moderate-to-severe uncontrolled asthma.
    • The three highest doses of dupilumab in combination with standard-of-care therapy met the primary endpoint of a statistically significant improvement from baseline in forced expiratory volume over one second (FEV1) at week 12 in patients with high blood eosinophils (>= 300 cells/microliter) compared to placebo in combination with standard-of-care therapy. Also, two doses of dupilumab (200 mg every other week and 300 mg every other week) showed a statistically significant improvement in mean percent change in FEV1 and a reduction in severe exacerbations, both in the high eosinophils group and the overall study population.
    • Dupilumab blocks IL-4 and IL-13, two cytokines required by the Th2 immune response. Some researchers believed that targeting the Th2 pathway would limit the benefit in asthmatics with high eosinophils, but this study demonstrated that it could be effective. Final results from the trial will be presented at a future medical conference.
    • Sanofi plans to proceed to Phase 3 development.
    | Nov. 11, 2014, 7:44 AM | 2 Comments
  • Nov. 10, 2014, 11:02 AM
    | Nov. 10, 2014, 11:02 AM | Comment!
  • Nov. 6, 2014, 1:59 PM
    • Biosimilar firm Coherus BioSciences (NASDAQ:CHRS) encounters less-than-expected investor interest in its first day of trading. Shares are off more than 5% from the $13.50 IPO price.
    • The late-clinical-stage biotech's lead product is an anti-TNF (tumor necrosis factor) biosimilar to Amgen's (AMGN +0.9%) Enbrel (etanercept) currently in Phase 3 development.
    • The company generates no revenue at present. Its net loss was $53.6M in 2013 and $50.1M in 1H 2014.
    • S-1
    | Nov. 6, 2014, 1:59 PM | 2 Comments
  • Nov. 4, 2014, 11:01 AM
    • In a Phase 3 clinical trial assessing Amgen's (AMGN -1.1%) trebananib in combination with paclitaxel as a treatment for women with platinum-resistant ovarian cancer, the combo failed to demonstrate a statistically significant improvement in overall survival (OS) compared to placebo in combination with paclitaxel. Median OS, which was a secondary endpoint, in the test group was 19.3 months compared to 18.3 months in the control group.
    • As previously announced, trebananib did show a statistically significant improvement in progression-free survival (PFS), the primary endpoint. Median PFS in the test arm was 7.2 months compared to 5.4 months in the control arm (p<0.001).
    • EVP of R&D Sean Harper, M.D., says, "While the overall survival results of the TRINOVA-1 study are disappointing, this study is the first of three Phase 3 trials designed to evaluate the safety and efficacy of trebananib in patients with ovarian cancer. We continue to explore the potential of trebananib's novel anti-tumor mechanism of action in other cancer settings."
    • Previously: A Phase 3 trial of the angiopoietin inhibitor trebananib plus paclitaxel in ovarian cancer...
    | Nov. 4, 2014, 11:01 AM | Comment!
  • Oct. 28, 2014, 9:34 AM
    • Amgen (AMGN +4.6%) provides 2015 guidance: Revenues: $20.8 - 21.3B; non-GAAP EPS: $9.05 - 9.40; adjusted tax rate: 18 - 19%, ex. R&D tax credit; capex: ~$800M.
    | Oct. 28, 2014, 9:34 AM | 1 Comment
  • Oct. 28, 2014, 9:24 AM
    • In outlining its strategy today, Amgen (NASDAQ:AMGNnotes it will increase its biosimilar porfolio by 33%:
    • "In addition to the biosimilar adilimumab, trastuzumab, bevacizumab, infliximab, rituximab and cetuximab programs, Amgen has initiated three additional biosimilar programs." No details on what they are.
    • AMGN says biosimilars are "a good strategic fit" and "represent a compelling growth opportunity with the potential to deliver more than $3B in annual revenues."
    • Infliximab and rituximab have advanced to the "clinical ready" phase.
    • Amgen's first biosimilar is expected to launch in 2017, followed by four others through 2019.
    • Previously: Amgen cash flow ops up 52%, guidance raised
    | Oct. 28, 2014, 9:24 AM | Comment!
  • Oct. 27, 2014, 4:21 PM
    • Amgen (AMGN -0.6%) Q3 results ($M): Total Revenues: 5,031 (+6.0%); Product Revenues: 4,848 (+4.3%); COGS: 1,068 (+35.5%); R&D Expense: 1,018 (+2.9%); SG&A Expense: 1,213 (-2.9%); Net Income: 1,244 (-9.1%); EPS: 1.61 (-10.1%); CF Ops: 2,741 (+51.7%); Quick Assets: 28,075 (+24.5%).
    • Gross Profit: 3,963 (+0.1%); COGS: 21.2% (+27.9%); Gross Margin: 78.8% (-5.6%); Operating Profit: 1,732 (+0.6%); Operating Earnings Yield: 34.4% (-5.1%); Net Earnings Yield: 24.7% (-14.2%).
    • Product Sales: Neulasta/Neupogen: 1,493 (-6.7%); Neulasta: 1,193 (+5.1%); Enbrel: 1,120 (+3.0%); Xgeva/Prolia: 573 (+30.5%); Epogen: 518 (+5.5%); Aranesp: 474 (+5.6%); Xgeva: 318 (+21.8%); Sensipar/Mimpara: 273 (+5.4%); Prolia: 255 (+43.3%).
    • 2014 Guidance: Total revenue: $19.8B - 20.0B from $19.5B - 19.7B; non-GAAP EPS: $8.45 - 8.55 from $8.20 - 8.40; capex: $800M (unch); effective tax rate: 16 - 17% from 15 - 16%.
    | Oct. 27, 2014, 4:21 PM | 3 Comments
  • Oct. 27, 2014, 4:05 PM
    • Amgen (NASDAQ:AMGN): Q3 EPS of $2.30 beats by $0.19.
    • Revenue of $5.03B (+5.9% Y/Y) beats by $70M.
    • Shares +1.55%.
    • Press Release
    | Oct. 27, 2014, 4:05 PM | Comment!
  • Oct. 26, 2014, 5:35 PM
  • Oct. 23, 2014, 5:38 PM
    • Amgen (AMGN +2.5%) will report Q3 results on October 27 after the close. The conference call will begin at 2:00 pm PT/5:00 pm ET.
    • Consensus view is EPS of $2.11 on revenues of $4.96B.
    | Oct. 23, 2014, 5:38 PM | Comment!
AMGN vs. ETF Alternatives
Company Description
Amgen Inc is a biotechnology company that discovers, develops, manufactures and delivers human therapeutics. It operates in one business segment being human therapeutics.
Sector: Healthcare
Industry: Biotechnology
Country: United States