Amgen has proven a stable and growing company, predictable long-term. This is based on an analysis of your earnings, cash flow, and stock price chart patterns. The company had net solid profit margins of around 30%, which is above average but an industry standard. Despite paying dividends, repurchasing shares, and completing several acquisitions, they have not been thrifty with cash flow. As an undervalued dividend stock, Amgen is a defensive and stable investment that is trading close to a 15 p/e ratio.
With net debt of $26.5 billion and a free cash flow of $9.8 billion, Amgen’s last quarter showed that it had debt almost equal to its last quarterly earnings. The balance sheet is in good shape by all appearances, and no additional debts will be added to its market capitalization. Consistent sales growth and good profitability make the company highly stable. This business will show a steady growth of 10 digit numbers year after year and pay regular dividends. Analysts are optimistic as it is reasonably valued and will increase in the future but are waiting to see if it will decline in value.
What company is Amgen
Erythropoietin (EPO) Research was the primary motivation for creating Amgen, which was established in 1980. AMGEN received provisional approval in May 2021 for the second-line treatment of non-cell lung cancer small with KRAS G12C Mutation (NSCLC). Amgen’s next big hit drug could be Lumakras, which is the first KRAS inhibitor on the market. Since the company began developing a drug to block KRAS, a cancer-causing protein, it has spent nearly 40 years on the project. The cost of treating patients with EGFR mutant NSCLC with Amgen’s Lumakras is $17,900/month. There is a 50% to 75% chance of success, and the drug can generate $2 billion in revenue over the next two decades. Estimates might increase by a factor of two if the therapy assignment was expanded to earlier lines of treatment.
In partnership with AstraZeneca, tezepelumab is an asthma medication (AZN). There are approximately 2.5 million people worldwide who suffer from severe asthma and are uncontrollable or ineffective in controlling their disease. Amgen’s Tezepelumab is expected to gain absorption for the first time in the low eosinophil population (the remaining third). On May 10, 2021, AstraZeneca filed a biological license application with the FDA. Lumakras is expected to have clinical applications in the treatment of NSCLC and colorectal cancer by 2027. Amgen and AstraZeneca will receive an equal share of the profits.
Since the beginning of 2012, Amgen (AMGN) has essentially been trading straight. While growth-oriented investors find this frustrating, value-conscious investors may find short-term volatility beneficial to investing in the company at the appropriate times. While revenues have declined by $M, Amgen expects new patient enrollment to improve in the second quarter. Management once again reiterated its earnings per share forecast of $16.50 for the full year 2021, adjusted.
Although the 3% dividend yield is low, I predict that investors will be handsomely rewarded for their patience in the future. Considering the 43% payout rate and 13.4% CAGR, this represents a good value. Amgen is a leading biotechnology company that provides a wide range of life-saving pharmaceuticals and has a growing range of biosimilars in its pipeline. Amgen is poised for a revenue resurgence after the epidemic as the world and country move out. The balance sheet is solid, and the capital return program is robust. A buy-the-dip opportunity opens now because of the recent drop in the stock price.
Amgen: a biotechnology company
Themen is one of the world’s largest biotechnology companies headquartered in Thousand Oaks, California. Amgen’s impact on society, however, is far greater than its size. In 1980, Amgen scientists began working on recombinant DNA, which involved mixing DNA pieces from different sources to create life-saving drugs. It specializes in human therapeutics and is the world’s largest independent biotechnology company, and has been one of the most innovative biotechnology companies in the world since the 1980s.
Amgen is by far the world’s largest manufacturer of human medicines, which means she earns billions of dollars annually. It developed the world’s first human enzyme replacement therapy, the world’s first targeted disease-modifying anti-rheumatic drug, and the world’s first antibody targeted at cancer. In other words, Amgen has been involved in some of the most innovative discoveries in the field of medicine. And that’s no small thing. The company has been in the news recently because it is in a patent battle with Mylan over the EpiPen. In the 1980s and early 1990s, Amgen largely grew through acquisitions.
Amgen manufactures and markets a wide range of medical products. Some of them include: Neuromuscular Blocks and BioShield are products prescribed to relieve pain and discomfort caused by spinal cord injuries and/or scoliosis. These tools reduce pain and improve the individual’s ability to perform daily activities. Some of the drugs in this product portfolio are: Neuroshield, a product in the BioShield product line that uses the body’s natural healing resources to treat spinal cord pain. BioShield has been given orphan drug status by the US Food and Drug Administration for the treatment of low back pain associated with degenerative disc disease.
The Amgen Story
As a relatively small company, Amgen greatly impacted American society when it won the first FDA approval for a recombinant DNA product: Neupogen (Neupogen) in 1996. What is Neupogen? It is a drug designed to increase white blood cells in people with cancer or anemia. Neupogen reduces the risk of infection in patients treated with chemotherapy or radiotherapy, which was developed to solve an impending problem. Many patients undergoing treatment with anthracyclines, a type of chemotherapy, have experienced serious side effects that have led to hospitalizations.
The company was founded by Jerry Anderson and has since continued to be managed by the Anderson family. In 1978, after completing his doctorate. in biology, Anderson left his job as an engineer at BASF to join the faculty at the University of California, San Diego School of Medicine. He received a fellowship to study the flu virus at the Children’s Hospital of Philadelphia in 1978. At the time of writing, the technology used to study the flu virus involved culturing the virus in Petri dishes and cultivating it in media made from different chemicals. When culture media began to run out, a scientist at St. Jude’s Research Hospital in Memphis, Tennessee, brought Petri dishes from the medical school laboratory. These Petri dishes had no germs.
Business success is usually measured by profitability. However, true success is measured by the impact on society. Companies considered world-class include Amgen, Inc. It makes more than just profit; it has a positive impact on society.