AMGN - Embedded Expectations Analysis - 2021 10 22
Amgen Inc. (AMGN:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 14.9x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may have concerns about U.S. total sales volumes, manufacturing and research investments, and lower net selling prices.Specifically, management may lack confidence in their ability to invest in new manufacturing facilities, focus on areas where they have strong research and commercial presence, and increase research in nephrology and bone. Furthermore, they may lack confidence in their ability to grow after-tax cash flows, sustain Repatha sales, and maintain U.S. total volumes. Also, they may have concerns about expected increases in R&D expenses from AMG 160 and AMG 757, the pace of recovery from the pandemic, and lower net selling prices for Enbrel and biosimilars.
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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