10 Best Drug Stocks to Buy Now

6. Amgen Inc. (NASDAQ:AMGN)

Number of Hedge Fund Holders: 68

Amgen Inc. (NASDAQ:AMGN) is a biotechnology company that discovers, develops, manufactures, and markets human therapeutics. It delivers new therapies for patients with complex cancers, especially in areas with significant unmet needs. The company ended fiscal Q4 2024 with 14 medicines, each annualizing at more than $1 billion. Several of these are expected to be key growth drivers for the company through the decade.

Repatha, which treats cholesterol and heart disease, and EVENITY, which targets osteoporosis in postmenopausal women, are drugs that are continually delivering strong growth for the company. Repatha has developed into a multi-billion dollar product. Heart disease, the leading cause of death worldwide, is further driving its growth.

Amgen Inc. (NASDAQ:AMGN) also has a strong portfolio for rare diseases, which is expected to expand in 2025 with the potential regulatory approval for TEPEZZA internationally, the first and only FDA-approved medicine to treat Thyroid Eye Disease (TED).  Launches in new indications for UPLIZNA, which treats neuromyelitis optica spectrum disorder (NMOSD), are expected to further strengthen the growth trajectory of the company’s rare disease business.

Analysts are bullish on the stock as its October 2023 acquisition of Horizon Therapeutics is expected to pay off in the next five years. PGIM Jennison Health Sciences Fund stated the following regarding Amgen Inc. (NASDAQ:AMGN) in its Q2 2024 investor letter:

“Amgen Inc. (NASDAQ:AMGN) is a large-cap global biotech company with a diverse portfolio of marketed and pipeline products. Amgen’s discovery pipeline had led the company to broaden its focus from oncology, immunology, and renal disease to include musculoskeletal, cardiovascular, and neurologic conditions. In addition, Amgen has turned its expertise in antibody manufacturing into a leading position in the development of biosimilars of competitor drugs. Most recently, Amgen shares advanced in 2Q following its announcement that its novel injectable GLP-1 agonist / GIPR antagonist, MariTide, for obesity showed promising interim Phase 2 data and has shown enough promise to warrant advancement into pivotal trials as soon as late 2024. While Eli Lilly and Novo Nordisk will remain the market leaders in the diabetes/obesity space, we think there is room for Amgen to carve out a meaningful share of the market with its antibody-peptide conjugate approach that could enable monthly or better dosing for MariTide.”