Entering text into the input field will update the search result below

Amgen: One Of The Few Bargains In This Market

Mar. 04, 2021 4:12 PM ETAmgen Inc. (AMGN)14 Comments
Daniel Schönberger profile picture
Daniel Schönberger


  • Amgen is an American biopharmaceutical company focusing especially on diseases in the field of oncology and hematology, inflammation or cardiovascular.
  • The company has a wide economic moat based on its patents.
  • The balance sheet is not perfect, but no reason to worry.
  • Amgen seems to be undervalued at this point if we assume that Amgen can grow in the low-to-mid single digits.

I have covered several pharmaceutical companies in the past - like Celgene (acquired Bristol-Myers Squibb (BMY)), Novo Nordisk (NVO) or AbbVie (ABBV). And when I started to focus on wide economic moats, I was quite optimistic, that many pharmaceutical companies have a wide economic moat due to the various patents. And while this is certainly true for some pharmaceutical companies, it is not true for all - Gilead Sciences (GILD) might be an example where patents were no guarantee for growth in the last few years.

(Source: Amgen Multimedia)

In the following article, I will analyze yet another pharmaceutical company - Amgen, Inc. (NASDAQ:AMGN) - and we will try to determine if Amgen has a wide economic moat and if the stock could be a good long-term investment.

Business Description

Amgen is an American biopharmaceutical company, which was founded in 1980 in California as Applied Molecular Genetics and changed its name to Amgen in 1983. The company, which was once a biotechnology pioneer is today one of the world's leading biotechnology companies with $25 billion in revenue and about 22,000 employees. The company is focusing on areas of high unmet medical need - especially diseases in the field of oncology and hematology, inflammation or cardiovascular. Additionally, the company is also producing biosimilars and although it is only operating in one business segment - human therapeutics - Amgen is certainly diversified across several medical fields.

Amgen is present in approximately 100 countries all over the world, but 74% of its revenue is still generated in the United States. When looking at fiscal 2020, Amgen performed quite impressive - considering the global pandemic and recession. Revenue increased 8.8% YoY and non-GAAP earnings per share increased even 12.0% YoY. GAAP earnings per share on the other hand were not only much lower ($12.31 instead of $16.60), but also decreased about 4.4% compared to fiscal 2019.

This article was written by

Daniel Schönberger profile picture
Part-time investor and contributor for Seeking Alpha since 2016. My analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization (from large cap to small cap companies). My academic background is in sociology and I hold a Master’s Degree in Sociology (with main emphasis on organizational and economic sociology) and a Bachelor’s Degree in Sociology and History.I also write about investing, economy and similar topics on Medium: https://medium.com/@danielschonberger

Analyst’s Disclosure: I am/we are long GILD, NVO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.