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Amgen Inc. (AMGN), headquartered in Thousand Oaks, California, is a renowned player in the biotechnology industry. Valued at $163.62 billion by market cap, the company uses technology and human genetic data to discover, develop, manufacture, and deliver innovative medicine.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and AMGN fits right into that category. For more than 40 years, AMGN has been one of the leading players in using living cells to make biological medicines. The company is advancing a broad and deep pipeline that builds on its existing portfolio of drugs to treat cancer, heart disease, osteoporosis, inflammatory diseases, and rare diseases.
The biotechnology giant has fallen 7.5% from its 52-week high of $329.72, which it hit on Feb. 5. Shares of AMGN are up 11.8% over the past three months, outperforming the broader S&P 500 Index’s ($SPX) 3.7% gains over the same time frame.
Longer term, AMGN shares rose 37.9% over the past year, and in 2024, the stock is up 5.9%. By contrast, the SPX is up 12.1% on a YTD basis and 25.3% over the past 52 weeks.
To confirm the bullish price trend, AMGN has been trading above its 50-day and 200-day moving averages since early May.
AMGN shares rose almost 12% in the session after the company reported better-than-expected Q1 revenue and earnings. Revenue grew 22% year over year to $7.45 billion, and its adjusted EPS came in at $3.96. Ten products from its portfolio delivered double-digit volume growth in the first quarter. For 2024, the company expects total revenues to be between $32.5 billion and $33.8 billion. Its non-GAAP EPS is expected to come between $19 and $20.20.
AMGN’s recent outperformance can be attributed to the optimism surrounding the positive results from the phase 2 clinical trials of its obesity injection MariTide. Management is also planning a broad phase 3 trial and looking to scale up manufacturing. If and when it gets approved by the regulatory authorities, the injectable drug could directly compete with Eli Lilly and Company’s (LLY) Mounjaro and Zepbound and Novo Nordisk A/S’ (NVO) Ozempic and Wegovy. The injectable drug has sparked interest as it is designed to be given monthly, compared to the present offerings by its competitors, which are dosed weekly.
To emphasize the stock’s overall outperformance, rival Biogen Inc. (BIIB) has underperformed – not just AMGN but also the broader equity benchmarks. BIIB stock has declined 26.1% in the past 52 weeks and 12.9% on a YTD basis.
With its recent outperformance compared to the SPX, analysts remain optimistic about AMGN’s prospects. The stock has a consensus rating of “Moderate Buy” from the 25 analysts covering it, and the mean price target of $315.09 is a premium of 3.3% to current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
