AMGN - Embedded Expectations Analysis - 2021 07 06
Amgen Inc. (AMGN:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 16.8x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may be concerned about volume growth, Otezla competition, and LUMAKRA's efficacySpecifically, management may lack confidence in their ability to sustain their bone health product volume and new-to-brand prescription growth. In addition, they may be exaggerating the potential of their induced proximity platform and their focus on improving patient access to medicine. Furthermore, management may have concerns about Otezla's competition in the psoriasis market and LUMAKRA's efficacy, both with a 240mg dose and in combinations. Moreover, they may lack confidence in their ability to maintain Aimovig's market leadership and mitigate Parsabiv's sales declines. Finally, management may be concerned about AMG 160 and AMG 757's ability to pass clinical trials and their interactions with regulatory agencies around the world.
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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