Amgen: Waiting Patiently For A Real Catalyst

Summary

• Amgen's diversified portfolio ensures steady revenue but modest growth, with no single drug contributing more than 15% to total revenue.
• Recent revenue growth and margin upticks are promising, but sustainability remains uncertain amid biosimilar competition and pricing pressures.
• High debt levels and slow deleveraging, particularly from the Horizon Therapeutics acquisition, pose risks to future M&A and capital efficiency.
• Technical analysts may find short-term opportunities; however, I rate AMGN stock a hold until more clarity on their weight-loss therapy emerges.

Solskin

Company Background

Amgen Inc. (NASDAQ:AMGN) is a biotechnology company based in Thousand Oaks, California. It commenced its operations in 1980, focused primarily on recombinant DNA technology and recombinant human insulin. It has since become one of the most diversified companies

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.