AMGN
- P/E: 16.1
- GAAP EPS Y-O-Y GROWTH LAST QUARTER: $.22
- SECTOR: HEALTH TECHNOLOGY
- ASSETS-LIABILITIES: 1.62
- DIVIDEND: 2.54%
Amgen is a leading biotech company
with a solid financial foundation. It has managed to reduce its
spending on research and development while increasing revenue through
its sales of established drugs such as Enbrel, and Prolia. The
company has several rapidly growing drugs that are newer to the
market, with many drugs in the company's pipeline.
In its last quarter, Amgen posted 7.7%
revenue growth with 7.5% net income growth. The company spent less,
however, in the most recent quarter when compared with the comparable
quarter from the prior year, on research and development. The
reduction in operating margin came from an increased interest expense
in the quarter. Although the company spent less on research and
development, its revenue did increase. Amgen is continuing to
innovate despite reduced research and development budget, with
several drugs in late stage trials. The company will be able to
sustain growth if its upcoming drugs are successful.
Robert A Bradway, the company's CEO,
previously worked as an investment banker in Morgan Stanley's
healthcare division. Although Amgen lost $150 million of its revenue
on its largest drug, Enbrel, Marketwatch reports that the company
narrative and pipeline are positive. Positive news surrounding the
company's Repatha, Prolia, and Xgeva drugs could be promising for the
company, according to Marketwatch. Wall Street has predicted the
company will report earnings of $3 in the quarter reporting
4/26/2017.
The company has a solid financial
foundation. Its price-to-earnings multiple is relatively low, giving
the share price opportunity to increase to reveal the company's true
value. Additionally, a large yield provides investors of AMGN with
guaranteed investment return at 2.54%. Amgen has a good ratio of
assets to liabilities, and is reducing its operation costs while its
revenue is increasing. While Amgen is not the largest company in its
sector, it has solid growth and strong financial backing.
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