![]() The stock price seems to have already priced in this deceleration as it's down 55% from its all-time high in June 2021, hit following the FDA approval of Aduhelm.Īs such, BIIB has a Value Grade of A in the POWR Ratings system, part of its overall B (Buy) rating. ![]() This year, analysts expect revenue to fall another 10% to $9.9 billion. Last year, BIIB reported an 18% decline in revenue to $11.0 billion – due in part to Tecfidera's expiring patent. However, there is some hope of accelerated approval due to positive safety data. Phase III trials are ongoing and expected to last until 2024. Over the last five years, BIIB has made over 20 acquisitions, licensing or development deals.Ĭurrently, it has a candidate in clinical trials, BAN2401, which is targeted toward early onset Alzheimer's disease, dementia and cognitive impairment. To counter this, the company has been aggressively making deals to bolster its pipeline. Last year, the treatment accounted for about 25% of Biogen's total revenue, but is expected to see a significant decline in sales this year. The drug was also rejected by Japanese and European authorities.Īnother challenge for the healthcare stock is that Tecfidera, its MS drug, is now facing generic competition. Last quarter, it only generated $1 million in sales. The treatment has failed to generate much traction in the market as there remain questions about its efficacy, and so far, many insurers and the Centers for Medicare and Medicaid Services (CMS) are not covering it. A major factor in share-price decline is the controversial approval of its Alzheimer's disease drug, Aduhelm. Over the past year, BIIB stock is down 20%. These include Tecfidera, Vumerity, Spinraza and Fumaderm to name a few. POWR Ratings average broker rating: 2.19īiogen ( BIIB, $214.54) focuses on developing therapies and treatments for neurological and neurodegenerative diseases such as multiple sclerosis (MS), Alzheimer's, dementia, Parkinson's and spinal muscular atrophy.AMGN is one of the best biotech stocks in terms of Quality, earning an A for its POWR Grade, due to its strong balance sheet, low debt and well-regarded management team. B-rated stocks have posted an average annual performance of 20.1% since 1999, which outpaces the S&P 500's average 8% annual gain. ![]() This year, analysts are forecasting a modest improvement to $17.65 in earnings per share (EPS) and $26.2 billion in revenue.Īmgen has an overall rating of B (Buy) in the POWR Ratings system. For the full year, AMGN recorded earnings of $17.10 per share and revenue of $26 billion, up 6% and 2.1% year-over-year, respectively. Sotorasib also recently got FDA approval to treat a specific type of lung cancer, while KHK4083 is in a late-stage trial to study its effect on inflammatory diseases.ĪMGN has shown steady growth in recent years and its 2021 results were no different. It's also being studied as a treatment for other diseases including chronic obstructive pulmonary disease and chronic rhinosinusitis. Tezepelumab is an asthma treatment that gained approval from the Food and Drug Administration (FDA) last year. But Amgen has plenty of future growth drivers in its lineup, including in drugs such as tezepelumab, sotorasib and KHK4083. This merger-and-acquisitions (M&A) strategy is essential for Amgen as the company is losing patent protection for several products over the next decade – including for its blockbuster drug Prolia. And last year, it bought Five Prime Therapeutics that gave it bemarituzumab, a treatment for gastric cancer that is currently in a Phase III trial. That same year, AMGN acquired the drug Otezla from Celgene. The Dow Jones stock also has a proven record of making successful partnerships and acquisitions to ensure growth and keep its pipeline well-stocked.Įxamples include Amgen taking a 20.5% stake in BeiGene ( BGNE) in 2019, which gave it entry into the Chinese oncology market. On the other hand, it's also an opportunity as AMGN's international sales have been steadily growing, with the company showing particularly strong growth in the Asia-Pacific region. Another potential risk is if a deal is made in Congress that lowers the price of prescription drugs, which would undermine Amgen's margins. For instance, another company could start selling a better or cheaper drug that addresses the same issues. This concentration in AMGN, in terms of its products and geography, does pose risks that investors should consider. The company also derives the vast majority of its revenues from America. These three drugs made up more than 38% of AMGN's sales last year. ![]() The company's three top-selling drugs are Enbrel for inflammatory diseases, Prolia for osteoporosis and Otezla for plaque psoriasis. Total product sales accounted for 93.5% of AMGN's 2021 revenues. POWR Ratings average broker rating: 2.65Īmgen ( AMGN, $252.17), founded in 1980, is a pioneer in biologics.
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