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Amgen Inc (AMGN)
:AMGN
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Amgen
(NASDAQ:AMGN)
75Outperform
Positive Factors
Clinical Trial Success
AMGN provided surprisingly positive topline data from the Ph3 ROCKET-IGNITE trial for rocatinlimab in the treatment of atopic dermatitis.
Financial Performance
Amgen delivers strong FY24 performance with a 19% revenue growth and significant sales increases across multiple products.
Product Innovation
Successful launches and favorable clinical data of biosimilars are expected to drive Amgen's share price.
Negative Factors
Market Competition
Rocatinlimab's efficacy and safety profile in atopic dermatitis is weak compared to approved agents, making it unlikely to challenge market positioning.
Patent Expiry
The patents for key drugs accounting for a significant portion of Amgen's sales are set to expire, leading to potential competition from generics.
Regulatory and Tariff Risks
Amgen may be affected by proposed tariffs on pharmaceuticals, increasing the cost of imported ingredients.
Amgen (AMGN) vs. S&P 500 (SPY)
Market Cap
$158.15B
Dividend Yield3.1%
Average Volume (3M)3.19M
Price to Earnings (P/E)38.9
Beta (1Y)0.40
Revenue Growth18.64%
EPS Growth-39.39%
CountryUS
Employees28,000
SectorHealthcare
Sector Strength76
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)7.55
Shares Outstanding537,204,960
10 Day Avg. Volume2,770,790
30 Day Avg. Volume3,185,768
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.08
Price to Cash Flow (P/CF)8.90
P/FCF Ratio7.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$332.71Price Target Upside13.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
Amgen Business Overview & Revenue Model
Company DescriptionAmgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience areas. The company's products include Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Neulasta that reduces the chance of infection due a low white blood cell count in patients cancer; Prolia to treat postmenopausal women with osteoporosis; Xgeva for skeletal-related events prevention; Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behçet's disease; Aranesp to treat a lower-than-normal number of red blood cells and anemia; KYPROLIS to treat patients with relapsed or refractory multiple myeloma; and Repatha, which reduces the risks of myocardial infarction, stroke, and coronary revascularization. It also markets Nplate, Vectibix, MVASI, Parsabiv, EPOGEN, KANJINTI, BLINCYTO, Aimovig, EVENITY, AMGEVITATM, Sensipar/Mimpara, NEUPOGEN, IMLYGIC, Corlanor, and AVSOLA. Amgen Inc. serves healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies. It distributes its products through pharmaceutical wholesale distributors, as well as direct-to-consumer channels. It has collaboration agreements with Novartis Pharma AG; UCB; Bayer HealthCare LLC; BeiGene, Ltd.; Eli Lilly and Company; Datos Health; and Verastem, Inc. to evaluate VS-6766 in combination with lumakrastm (Sotorasib) in patients with KRAS G12C-mutant non-small cell lung cancer. It has an agreement with Kyowa Kirin Co., Ltd. to jointly develop and commercialize KHK4083, a Phase 3-ready anti-OX40 fully human monoclonal antibody for the treatment of atopic dermatitis and other autoimmune diseases; and research and development collaboration with Neumora Therapeutics, Inc. and Plexium, Inc. Amgen Inc. was incorporated in 1980 and is headquartered in Thousand Oaks, California.
How the Company Makes MoneyAmgen makes money primarily through the sale of its pharmaceutical products. The company generates revenue from its portfolio of biologic and small-molecule drugs, which are used to treat a variety of serious illnesses. Key revenue streams include established products such as Enbrel (for inflammatory diseases), Neulasta (for infection prevention in chemotherapy patients), Prolia (for osteoporosis), and XGEVA (for bone-related conditions). Additionally, Amgen invests heavily in research and development to innovate and bring new therapies to market, thereby expanding its product pipeline and future revenue potential. The company also engages in strategic collaborations and partnerships that enhance its research capabilities and market reach, contributing to its overall earnings.
Amgen Financial Statement Overview
Summary
Amgen's financial performance is characterized by strong revenue growth and cash flow generation. However, declining profit margins and high leverage present risks. The company must improve operational efficiencies and manage debt levels to enhance stability.Income Statement
Amgen's revenue has shown a consistent growth trend with a rise from $25.42 billion in 2020 to $33.32 billion in TTM. The Gross Profit Margin remains strong, indicating efficient core operations, but there is a noticeable decline in Net Profit Margin from 25.3% in 2020 to 12.3% in TTM, reflecting pressure on bottom-line profitability. The EBIT margin also saw a drop, suggesting increased operational costs or reduced pricing power.75
Positive
Balance Sheet
Amgen's balance sheet shows a high Debt-to-Equity ratio, which has risen to 10.23 in TTM, indicating increased leverage and potential financial risk. However, the Return on Equity (ROE) remains robust, reflecting effective utilization of shareholder funds, though it has declined over the years. The Equity Ratio is low, pointing to high liabilities relative to assets, which could pose risks if not managed carefully.60
Neutral
Cash Flow
The cash flow statement reflects strong operating cash flow, which has increased significantly from $10.5 billion in 2020 to $11.49 billion in TTM, indicating healthy cash generation capabilities. Free Cash Flow shows consistent growth, enhancing financial flexibility. The Operating Cash Flow to Net Income ratio is favorable, suggesting efficient conversion of net income into cash.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 33.42B | 28.19B | 26.32B | 25.98B | 25.42B | Gross Profit |
| 20.57B | 19.77B | 19.92B | 19.52B | 19.27B | EBIT |
| 7.26B | 7.90B | 5.33B | 6.00B | 5.79B | EBITDA |
| 13.36B | 14.70B | 12.09B | 12.54B | 12.93B | Net Income Common Stockholders |
| 4.09B | 6.72B | 6.55B | 5.89B | 7.26B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 11.97B | 10.94B | 9.30B | 8.04B | 10.65B | Total Assets |
| 91.84B | 97.15B | 65.12B | 61.16B | 62.95B | Total Debt |
| 60.10B | 64.61B | 38.95B | 33.31B | 32.99B | Net Debt |
| 48.13B | 53.67B | 31.32B | 25.32B | 26.72B | Total Liabilities |
| 85.96B | 90.92B | 61.46B | 54.47B | 53.54B | Stockholders Equity |
| 5.88B | 6.23B | 3.66B | 6.70B | 9.41B |
| Cash Flow | Free Cash Flow | |||
| 10.39B | 7.36B | 8.79B | 8.38B | 9.89B | Operating Cash Flow |
| 11.49B | 8.47B | 9.72B | 9.26B | 10.50B | Investing Cash Flow |
| -1.05B | -26.20B | -6.04B | 733.00M | -5.40B | Financing Cash Flow |
| -9.41B | 21.05B | -4.04B | -8.27B | -4.87B |
Amgen Technical Analysis
Negative
294.39
Price Trends
303.16
Negative
288.13
Positive
302.97
Negative
Market Momentum
1.37
Positive
47.76
Neutral
32.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMGN, the sentiment is Negative. The current price of 294.39 is below the 20-day moving average (MA) of 311.79, below the 50-day MA of 303.16, and below the 200-day MA of 302.97, indicating a bearish trend. The MACD of 1.37 indicates Positive momentum. The RSI at 47.76 is Neutral, neither overbought nor oversold. The STOCH value of 32.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMGN.
Amgen Risk Analysis
Amgen disclosed 29 risk factors in its most recent earnings report. Amgen reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Amgen Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $128.92B | 21.63 | 7.34% | 2.84% | -4.57% | 2.96% | |
75 Outperform | $133.70B | 280.39 | 2.28% | 2.89% | 6.16% | -91.54% | |
75 Outperform | $158.15B | 38.94 | 67.55% | 3.10% | 18.64% | -39.39% | |
71 Outperform | $330.73B | 78.22 | 61.94% | 3.36% | 3.71% | -12.14% | |
68 Neutral | $130.27B | 16.30 | 9.05% | 7.36% | 8.77% | 272.80% | |
60 Neutral | $112.52B | ― | -39.10% | 4.38% | 7.32% | -214.24% | |
48 Neutral | $6.36B | 1.09 | -49.92% | 2.63% | 17.17% | 0.95% |
* Healthcare Sector Average
Performance Comparison
AMGN
Amgen
294.39
33.15
12.69%
BMY
Bristol Myers
55.30
6.59
13.53%
GILD
Gilead Sciences
107.25
40.34
60.29%
PFE
Pfizer
22.97
-2.04
-8.16%
SNY
Sanofi
51.98
6.22
13.59%
ABBV
AbbVie
186.96
23.13
14.12%
Amgen Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: 2.68% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance in 2024 with significant growth in product sales, particularly in oncology and biosimilars. The successful integration of Horizon and robust financial results further reinforce Amgen's position for continued growth. However, challenges such as the upcoming patent expiration for denosumab and expected price declines pose potential risks.Highlights
Strong Product Sales Growth
Fourth quarter product sales grew 11% year-over-year, and full year product sales grew 19%, with 10 products growing by double digits or better. Repatha and EVENITY together grew 35% year-over-year.
Innovative Oncology Portfolio
Amgen's oncology portfolio, including BLINCYTO and IMDELLTRA, generated almost $8 billion in sales for the full year with 11% growth year-over-year.
Biosimilars Performance
Sales of biosimilar products were $2.2 billion in 2024, an increase of 16% year-over-year. The launch of PAVBLU, a biosimilar to EYLEA, generated $31 million in just 9 weeks.
Successful Horizon Integration
The acquisition of Horizon was accretive to non-GAAP EPS for the full year 2024, with the integration progressing well and expected $500 million in pretax cost synergies by year 3 post acquisition.
Strong Financial Performance
Amgen reported full year total revenues of $33.4 billion, a 19% increase year-over-year, and generated $10.4 billion in free cash flow for the full year.
Lowlights
Denosumab Patent Expiration
Upcoming patent expiration for denosumab, which is expected to lead to revenue decline due to biosimilar competition.
Price Declines Across Portfolio
Continued price declines are expected across the portfolio in 2025, potentially impacting revenues.
Challenges with Early-Stage Obesity Assets
Uncertainty surrounding early-stage obesity assets, with one asset not meeting the high bar for further development.
Company Guidance
During Amgen's fourth quarter and full year 2024 earnings call, the company provided detailed guidance and expectations for 2025. Amgen expects total revenues to range between $34.3 billion and $35.7 billion, with non-GAAP earnings per share forecasted to be between $20 and $21.20. The company anticipates continued growth driven by key products such as Repatha, EVENITY, TEZSPIRE, and its innovative oncology and rare disease portfolios, as well as biosimilars. They reported a robust 19% increase in product sales for 2024, with 23% volume growth, and highlighted that 21 products achieved record sales. Amgen projects a non-GAAP operating margin of 46% for 2025 and plans to invest strategically in their late-stage pipeline, including assets like MariTide and olpasiran. The guidance reflects optimism despite potential challenges, such as the upcoming denosumab patent expiration and expected continued price declines across their portfolio.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.