AMGN - Embedded Expectations Analysis - 2019 03 05
Amgen, Inc. (AMGN:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 15.8x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about competitive pressures, sales declines across large brands, and FDA approval progress.Specifically, management may lack confidence in their ability to sustain legacy business sales growth amidst competitive pressures, and may be concerned about sales declines in their larger brands, such as Enbrel, Aranesp, and Parsabiv. Additionally, they may be concerned about the price of innovative therapies and uncertainty in prescription drug costs, and may lack confidence in their ability to invest in continued growth. Moreover, they may be concerned about EVENITY and Aimovig FDA approval progress, as well as their ability to prioritize their oncology pipeline, rapidly distribute Repatha to patients, and realize higher average net selling prices.
Amgen is a biotechnology company that discovers, develops, manufactures and delivers human therapeutics. The company's products include: Enbrel? (etanercept), which is used in indications for the treatment of adult patients with moderately to severely active rheumatoid arthritis, patients with chronic moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy and patients with active psoriatic arthritis; and Prolia? (denosumab), which is used for the treatment of postmenopausal women with osteoporosis at high risk of fracture or multiple risk factors for fracture, or patients who have failed or are intolerant to other available osteoporosis therapy.
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