Why Investors Should Consider Keeping AMGEN in Their Portfolio
AMGEN (NASDAQ: AMGN) has been a consistent performer in the biotech industry, with top-line growth that continues to impress. In the third quarter of 2021, the company reported revenue of $6.3 billion, representing a 12% increase year over year. This growth can be attributed to several factors:
Strong Sales of Existing Products
AMGEN’s portfolio of marketed drugs is a major contributor to its revenue growth. Some of its top-selling products include Enbrel, Neulasta, and Otezla. In the third quarter, Enbrel sales increased by 3% to $1.2 billion, while Neulasta sales grew by 13% to $1.3 billion. Otezla sales also saw a significant increase of 23% to $943 million.
Interesting Pipeline
AMGEN’s pipeline is another reason for investors to be optimistic about the company’s future growth prospects. The company has several promising candidates in various stages of development. For instance, its monoclonal antibody, Evusheld, is currently under review by the FDA for emergency use authorization as a preventative treatment for COVID-19. If approved, it could generate significant sales for AMGEN.
Rising Estimates
Analysts’ estimates for AMGEN’s earnings and revenue have been on the rise. According to Yahoo Finance, the consensus estimate for earnings per share (EPS) for 2021 is $13.50, up from $12.38 in 2020. The revenue estimate for 2021 is $24.8 billion, up from $22.7 billion in 2020. These estimates indicate that investors are bullish about AMGEN’s growth prospects.
Impact on Individuals
For individuals who invest in AMGEN, the company’s consistent top-line growth, interesting pipeline, and rising estimates are good reasons to hold onto their shares. The company’s market-leading position in several therapeutic areas, such as oncology and inflammation, gives it a competitive edge in the industry. Furthermore, the potential approval of Evusheld as a COVID-19 preventative treatment could lead to significant gains for AMGEN investors.
Impact on the World
From a global perspective, AMGEN’s growth and innovation in the biotech industry can have a positive impact on healthcare. The company’s pipeline includes several potential treatments for diseases with high unmet medical needs, such as Alzheimer’s disease and multiple sclerosis. Additionally, if Evusheld is approved for emergency use, it could help prevent the spread of COVID-19, especially in high-risk populations. AMGEN’s continued success in developing innovative treatments and therapies can lead to better health outcomes for patients and advance the field of medicine as a whole.
Conclusion
AMGEN’s consistent top-line growth, interesting pipeline, and rising estimates make it an attractive investment opportunity for individuals looking to grow their wealth. Furthermore, the potential approval of Evusheld as a COVID-19 preventative treatment could lead to significant gains for AMGEN investors. From a global perspective, AMGEN’s success in the biotech industry can lead to better health outcomes for patients and advance the field of medicine as a whole.
- AMGEN reported revenue of $6.3 billion in Q3 2021, representing a 12% increase year over year
- Top-selling products include Enbrel, Neulasta, and Otezla
- Pipeline includes potential treatments for diseases with high unmet medical needs
- Analysts’ estimates for EPS and revenue are on the rise
- Potential approval of Evusheld as a COVID-19 preventative treatment could lead to significant gains for AMGEN investors
- AMGEN’s success in the biotech industry can lead to better health outcomes for patients and advance the field of medicine as a whole
