AMGN - Embedded Expectations Analysis - 2020 11 09
Amgen Inc. (AMGN:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 16.2x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about clinical study delays, coronavirus-related disruptions, and Aimovig and OtezlaSpecifically, management may lack confidence in their ability to complete clinical studies without delay, execute their new antibody strategy, and compete in the rheumatoid arthritis market. In addition, they may have concerns about coronavirus-related disruptions to their global operations, the initial results of their pipeline studies, and recent executive orders. Furthermore, management may lack confidence in Aimovig's ability to compete with oral alternatives and titrate its dosage. Additionally, management may be exaggerating the extent to which patients will seek medical care in the second half of 2020 compared to the first half. Finally, they may be exaggerating the convenience of using Otezla, and they may lack confidence in omecamtiv mecarbil's potential to significantly improve heart failure outcomes
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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