Amgen, Inc. (AMGN): Is It a Buy Now?

The real key for Amgen’s long-term health will be in replacing lost revenue from its Neulasta/Neupogen franchise. Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) reached an agreement with Amgen in 2011 that allows marketing of a biosimilar in the U.S. beginning this November. Teva already competes against Neupogen in Europe with its Neutroval biosimilar.Sales for Neulasta/Neupogen were flat in the first quarter, but don’t expect that to hold up for much longer.

Several of Amgen, Inc. (NASDAQ:AMGN)’s products are on the move, though. For example, Xgeva/Prolia sales jumped 51% in the first quarter of 2013 and now total $365 million. Expectations are for the franchise to reach $1 billion or more in peak annual sales.

The biotech should report news later this year on several other promising drugs in its pipeline. Amgen plans to discuss additional findings from a phase 3 study of Talimogene laherparepvec near the end of the year. Results from a late-stage study of Trebananib in treating ovarian cancer are expected for mid-2013.

Plenty of kick left
I suspect that this pullback will only be temporary. The first-quarter results weren’t that bad, even with disappointing revenue figures. Amgen, Inc. (NASDAQ:AMGN) might be something of an old codger in the biotech world, but I think it has plenty of kick left. This stock remains a buy in my view.

The article Should You Buy Stock in Amgen After the Q1 Results Pullback? originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.