3. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Investors: 69
Amgen Inc. (NASDAQ:AMGN) is an innovator in human therapies based on biotechnology. The immune system boosters Neupogen and Neulasta, the red blood cell boosters Epogen and Aranesp, and the anti-inflammatory medications Enbrel and Otezla are among the brand-name medications.
The company launched its first cancer treatment, Vectibix, in 2006 and currently sells the bone-strengthening medications Evenity (2019) and Prolia/Xgeva (approved in 2010). Kyprolis was added to the company’s therapeutic oncology portfolio with the acquisition of Onyx.
Repatha (reducing cholesterol), Aimovig (migraine), Lumakras (lung cancer), and Tezspire (asthma) are among the new products.
Tepezza, a medication for thyroid eye illness, is among the rare-disease medications brought by the 2023 Horizon acquisition. AMGN’s array of biosimilars is expanding as well.
The biotechnology company experienced double-digit increases in the second quarter of 2024 for several of its long-term growth drivers, including the medications Evenity for osteoporosis, Repatha for lowering cholesterol, Tezspire for asthma, and Blincyto for leukemia. Demand for all of these medications is rising, with Blincyto reaching more recently diagnosed patients and Tezspire branching out into other immunological indications (such as chronic obstructive pulmonary disease).
Amgen Inc. (NASDAQ:AMGN) increased its projection for FY 2024 operating EPS to between $19 and $20.20 and predicted $32.5 billion to $33.8 billion in total sales for the year. These numbers point to a promising future for Amgen’s earnings.
Although the company’s initial focus was on providing supportive care products to patients with cancer and renal disease, Amgen has now broadened its product line to include innovative drugs in a variety of therapeutic areas, including immunology and cardiology. Its most recent bestsellers, such as the cholesterol-lowering medication Repatha, protect its wide moat despite challenges from branded and biosimilar competitors.
As one of the “Best GLP-1 and Weight Loss Stocks to Buy Now,” Amgen is also advancing in the GLP-1 market with its obesity portfolio, which includes the products MariTide and AMG 133. These medications have the ability to compete with well-known names like Ozempic and Wegovy. Concerns, however, include potential risks from new product releases and clinical research, as well as slower sales of established medications like Enbrel.
Carillon Eagle Growth & Income Fund stated the following regarding Amgen Inc. (NASDAQ:AMGN) in its first quarter 2024 investor letter:
“Amgen Inc. (NASDAQ:AMGN) shares suffered after the company released detailed clinical data on the lead obesity drug in its pipeline. Although investors recognized the medication’s efficacy, there were some concerns regarding other aspects of the medication revealed by the data.”
Argus boosted Amgen’s price objective to $360 from $340, noting a solid pipeline, 26% YoY product volume growth in the second quarter of 2024, and future earnings potential from new drugs and purchases.
The company’s biggest shareholder is Ken Griffin’s Citadel Investment Group, with 1,432,100 shares worth $447.46 million.
