COMPANY DESCRIPTION

Amgen (or 'the company') is a pioneering biotechnology company engaged in the discovery,development, manufacture and marketing of innovative human therapeutics.The company mainlyfocuses in areas of cancer, kidney disease, rheumatoid arthritis and other serious illnesses. Strongresearch and development program is helping Amgen to develop its product pipeline. However, costcontainment measures and healthcare reforms could affect Amgen's sales growth and profitabilityadversely.

 

ECONOMIC MOAT

In our opinion Amgen’s moat is due to several blockbuster biologic therapies in the oncology and immunology markets and other intangible assets.  Amgen is diversified and there are high barriers to entry in the biosimilars marketplace.

 

OUTLOOK

We anticipate healthy sales and earnings growth for the next two years, with our optimism stemming from ongoing high demand for the company's products and the improving healthcare landscape. Ongoing research endeavors appear promising. The biotech firm has not been resting on its laurels with legacy products, and developing research suggests that it may be on the brink of bringing further products to market. 

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STRENGTHS

  • Significant performance across product portfolio driving Amgen’s profitability

  • Strong commercial infrastructure across major markets

  • Expansion of R&D centers and focus helping Amgen enhance its portfolio

WEAKNESSES

  • Significant debt obligations impact the company's financial flexibility

  • Alleged involvement in mis-branding activities

THREATS

  • Cost containment measures may affect sales growth

  • Intensifying competition from biosimilars

OPPORTUNITIES

  • Successful launch of Vectibix for mCRC inthe US

  • Acquisitions could strengthen Amgen's business  

  • Agreement with Roche would help Amgenexpand its customer base

  • Research collaboration and license agreement with Kite Pharma

The above report is for information purposes only, and is not a solicitation or offer to buy or sell any securities. Past performance is no guarantee of future performance. Neither diversification nor asset allocation ensures a profit or guarantees against loss. Before investing, investors should consider their risk tolerance, investment objectives, time horizon, available capital, and charges and expenses.  

 

The information presented in this report has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guranteed. All material is subject to change without notice. The views and opinions expressed are those of Focused Stock Research and/or WALT ST Investment Management, Ltd. and in no way reflect the views and opinions of Investment Consultants nor their Broker Dealers.

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