Join        Login             Stock Quote

Amgen: Looks Attractive For Long-Term Investors

 April 26, 2012 12:49 PM

(By Mani) Biotech firm Amgen,Inc. (NASDAQ: AMGN) should be a good bet for long-term investors given a strong pipeline, room for dividend increases, and additional share buybacks.

Amgen focuses on developing novel biotherapeutics primarily in cancer, nephrology, inflammatory diseases, and now bone diseases. Amgen pioneered the use of recombinant DNA to produce some of the world's most successful blockbuster biotech drugs.

The company's core business is its erythropoietin (EPO) stimulating agents (ESAs such as Epogen and Aranesp) and neutrophil stimulating (Neupogen, Neulasta) franchises. The company's primary future growth driver is denosumab (Prolia) which is used to treat post-menopausal osteoporosis (PMO) and bone cancer.

[Related -Amgen, Inc. (NASDAQ:AMGN): What Will Drive Amgen This Year?]

"We think AMGN is an attractive long-term value stock with 1) potential for overall streamlining and cost cutting like big pharma, 2) room for much dividend increases (2% yield vs 4% pharma) and more share buybacks, 3) less generic erosion than pharma over the long-run (biologics not small molecules)," RBC Capital Markets analyst Michael Yee wrote in a note to clients.

During the first quarter 2012, Amgen repurchased about 21 million shares of common stock at a total cost of $1.4 billion. The company currently has $3.6 billion remaining under its repurchase program.

Amgen is upping its ante on acquisitions as it agreed to buy 95.6 percent of shares in Turkey's Mustafa Nevzat Pharmaceuticals valuing the company at $700 million. Yee said would like to see more deals, particularly for an oral Rheumatoid arthritis/psoriasis drug.

[Related -Amgen, Inc. (AMGN) Q3 Earnings Preview: Pipeline In Focus]

Amgen recently reported a five percent rise in first-quarter earnings on strong sales of its lead infection drug Neulasta and Xgeva. Thousand Oaks, California-based Amgen earned $1.18 billion or $1.48 per share, compared to $1.12 billion or $1.20 share last year. Excluding items, it earned $1.61 per share, topping Street view of $1.45 per share.

Amgen's first-quarter revenue rose 9 percent to $4.05 billion, which came in above the consensus revenue estimate of $3.93 billion.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.