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Amgen Inc (AMGN)
:AMGN

Amgen (AMGN) AI Stock Analysis

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AM

Amgen

(NASDAQ:AMGN)

Rating:70Outperform
Price Target:
$324.00
▲(8.64%Upside)
Amgen's strong financial performance and positive earnings call highlight its strengths in profitability and growth potential. While technical indicators are less favorable, and high leverage poses some risk, the company's strategic investments and robust cash flow provide a solid foundation for long-term growth.
Positive Factors
Clinical Trial Results
The Ph3 FORTITUDE-101 trial showed a statistically significant and clinically meaningful improvement in Overall Survival for patients with specific gastric cancer when treated with bemarituzumab plus chemotherapy.
Pipeline Growth
Amgen's pipeline is considered to have received an incremental positive boost from the trial results.
Negative Factors
Market Impact
Despite the positive trial results, the event is seen as a low impact catalyst due to the size of the opportunity.
Safety Concerns
Ocular events occurred with greater frequency and severity in the Ph3 bemarituzumab arm, which raises concerns about safety.
Tolerability Issues
Shares were weak primarily because of GI tolerability concerns, even though it was a widely held view the data would look mixed.

Amgen (AMGN) vs. SPDR S&P 500 ETF (SPY)

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 biopharmaceutical products, which constitute the bulk of its revenue. The company generates income by marketing and selling its products to healthcare providers, hospitals, clinics, and pharmacies. Key revenue streams include the sales of its flagship drugs like Enbrel, used for treating autoimmune diseases, and Prolia, used for bone health. Amgen also invests in research and development to bring new drugs to market, which can provide substantial future revenue. Additionally, strategic partnerships, collaborations, and licensing agreements with other biotech and pharmaceutical companies contribute to its earnings by expanding its research capabilities and market reach. Amgen's focus on biologics and biosimilars is a significant factor in its financial performance, enabling the company to maintain a competitive edge in the biotechnology sector.

Amgen Key Performance Indicators (KPIs)

Any
Any
Product Sales by Geography
Product Sales by Geography
Highlights where Amgen's products are selling the most, indicating strong markets and potential areas for expansion or risk due to regional economic factors.
Chart InsightsAmgen's U.S. sales have seen a strong upward trajectory, particularly in 2024, driven by increased patient demand and successful product launches, as highlighted in the latest earnings call. The Rest of World segment also shows steady growth, supported by the biosimilars portfolio's success. However, potential challenges from tariffs and tax uncertainties could impact future operations. Despite these risks, Amgen's strategic expansions and robust pipeline position it well for continued growth, with key drivers like Repatha and EVENITY leading the charge.
Data provided by:Main Street Data

Amgen Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 6.03%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with notable revenue and volume growth, successful biosimilar launches, and strategic expansions. However, there are concerns regarding potential impacts from tariffs and tax uncertainties, as well as challenges in maintaining inventory levels in the rare disease segment.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue grew 9% year-over-year with a significant volume growth of 14% reflecting increased patient demand.
Biosimilars Portfolio Success
The biosimilars portfolio delivered more than $700 million in revenue this quarter, up 35% year-over-year.
Positive Phase III Data and New Product Launches
Delivered multiple positive Phase III readouts, initiated four new Phase III studies, and launched three new products or indications.
Growth in Rare Disease Portfolio
UPLIZNA, a differentiated B-cell depleting therapy, showed promise with recent FDA approval for IgG4-related disease and strong early-stage reception.
Oncology Developments
BLINCYTO and IMDELLTRA continued to grow, with IMDELLTRA showing significant survival benefits in second-line small cell lung cancer.
Expansion of Manufacturing
Amgen announced nearly $2 billion in additional expansions in Ohio and North Carolina.
Improved Access for Repatha
Repatha sales increased 27% year-over-year, driven by improved access and patient activation efforts.
Negative Updates
Uncertainty Related to Tariffs and Taxes
There is significant uncertainty related to tariffs and taxes, which could impact the business.
Challenges in Rare Disease Inventory Levels
Sales of TEPEZZA and KRYSTEXXA were adversely impacted by changes to U.S. wholesaler inventory levels.
Lower Net Selling Price
Net selling price was 6% lower, partially offsetting the volume growth.
Potential Impact of Tariffs on Future Operations
While Amgen is prepared to adapt, potential changes in tariffs present a challenge for future planning.
Company Guidance
During the Amgen Q1 FY 2025 earnings call, the company reported a robust start to the year with a 9% year-over-year revenue increase and 14% volume growth, driven by strong patient demand. Amgen highlighted double-digit sales growth across 14 medicines, spanning general medicine, rare diseases, inflammation, and oncology. Their biosimilars portfolio contributed over $700 million in revenue, a 35% increase compared to the previous year. Significant milestones included multiple positive Phase III data readouts, initiation of four new Phase III studies, and three new product or indication launches. Key growth drivers mentioned were Repatha, which saw a 27% increase in sales, and EVENITY, which grew 29%, while their rare disease portfolio, including UPLIZNA and TEPEZZA, positioned for long-term growth. The company also emphasized ongoing investments in their late-stage pipeline and manufacturing expansions, maintaining a forward-looking outlook despite uncertainties in tariffs and taxes. Overall, Amgen expressed confidence in continuing their trajectory of innovation and growth.

Amgen Financial Statement Overview

Summary
Amgen demonstrates strong financial health with consistent revenue and profit growth, efficient cost management, and solid cash generation. However, the high debt levels and relatively low equity base could pose risks if not managed carefully.
Income Statement
85
Very Positive
Amgen's income statement demonstrates strong profitability with an impressive gross profit margin and consistent revenue growth. The TTM data shows a gross profit margin of approximately 63% and an EBIT margin of nearly 22%, highlighting efficient cost management. The net profit margin improved significantly compared to previous years, reaching around 17.4% in the TTM. Revenue growth is steady, with a notable increase from 2024 to the TTM period.
Balance Sheet
70
Positive
Amgen's balance sheet indicates a high level of leverage, with a debt-to-equity ratio of approximately 9.25 in the TTM. However, the company maintains a healthy equity ratio of about 6.9%, reflecting reasonable asset management. The return on equity is strong at 95.6% in the TTM, driven by high profitability, although the low equity base presents potential risks.
Cash Flow
78
Positive
The cash flow statement reveals robust operating cash flow, which increased to $12.19 billion in the TTM. Free cash flow is consistently high, supporting financial flexibility. The operating cash flow to net income ratio is favorable, indicating effective cash generation relative to profits. Free cash flow growth is positive, signifying healthy cash management despite capital expenditure demands.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue34.13B33.42B28.19B26.32B25.98B25.42B
Gross Profit21.50B20.57B19.77B19.92B19.52B19.27B
EBITDA12.38B13.36B14.70B12.09B12.54B12.93B
Net Income5.93B4.09B6.72B6.55B5.89B7.26B
Balance Sheet
Total Assets89.37B91.84B97.15B65.12B61.16B62.95B
Cash, Cash Equivalents and Short-Term Investments8.81B11.97B10.94B9.30B8.04B10.65B
Total Debt57.38B60.10B64.61B38.95B33.31B32.99B
Total Liabilities83.16B85.96B90.92B61.46B54.47B53.54B
Stockholders Equity6.21B5.88B6.23B3.66B6.70B9.41B
Cash Flow
Free Cash Flow10.91B10.39B7.36B8.79B8.38B9.89B
Operating Cash Flow12.19B11.49B8.47B9.72B9.26B10.50B
Investing Cash Flow-1.28B-1.05B-26.20B-6.04B733.00M-5.40B
Financing Cash Flow-11.81B-9.41B21.05B-4.04B-8.27B-4.87B

Amgen Technical Analysis

Technical Analysis Sentiment
Positive
Last Price298.24
Price Trends
50DMA
281.24
Positive
100DMA
290.76
Positive
200DMA
289.92
Positive
Market Momentum
MACD
1.76
Negative
RSI
62.15
Neutral
STOCH
93.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMGN, the sentiment is Positive. The current price of 298.24 is above the 20-day moving average (MA) of 288.05, above the 50-day MA of 281.24, and above the 200-day MA of 289.92, indicating a bullish trend. The MACD of 1.76 indicates Negative momentum. The RSI at 62.15 is Neutral, neither overbought nor oversold. The STOCH value of 93.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PFPFE
72
Outperform
$144.29B18.398.62%6.78%13.38%
71
Outperform
$139.01B23.5032.51%2.83%4.63%1144.01%
71
Outperform
$334.34B80.7188.15%3.46%5.45%-30.21%
70
Outperform
$160.37B27.22105.67%3.19%15.59%56.99%
SNSNY
67
Neutral
$119.59B20.107.34%4.58%-4.57%2.96%
BMBMY
67
Neutral
$95.49B17.6231.99%5.29%4.62%
BMBMY
67
Neutral
$95.49B17.6231.99%5.29%4.62%
52
Neutral
$7.53B0.32-61.76%2.28%16.60%1.56%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMGN
Amgen
298.24
-3.49
-1.16%
BMY
Bristol-Myers Squibb
46.92
8.73
22.86%
BMY
Bristol-Myers Squibb
46.92
8.73
22.86%
GILD
Gilead Sciences
111.75
46.31
70.77%
PFE
Pfizer
25.38
-0.80
-3.06%
SNY
Sanofi
48.30
-0.39
-0.80%
ABBV
AbbVie
189.28
28.60
17.80%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 02, 2025