AMGN - Embedded Expectations Analysis - 2019 06 11
Amgen, Inc. (AMGN:USA) currently trades near recent averages relative toUAFRS-based (Uniform) Earnings, with a 14.8x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about the progress of their pivotal studies, potential drug pricing legislation, and their ability to execute life cycle management strategies in mature brands.
Specifically, management may be concerned about the progress of their BCMA BiTE molecule trials, ABP 959 study patient enrollment, and the potential of their KRAS G12C tumor mutation studies. In addition, they may be concerned about their ability to improve Repatha pricing, dose escalations in their pivotal studies, and the variance of background medications in their tezepelumab study. Moreover, management may be concerned about the impacts of IPI's proposed drug pricing legislation and their ability to manage new product launch costs. Furthermore, they may lack confidence in their ability to manage non-US sales declines, execute life cycle management strategies in mature brands, and maintain Aimovig's market leadership position.
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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