Amgen’s Year-to-Date Performance Exceeds Expectations; Now What?



Despite a decreasing pricing environment, Amgen (NASDAQ:AMGN) plans to drive growth through the decade’s end because of its diversified and expanding array of pharmaceuticals in various therapeutic areas.

So far this year, Amgen (NASDAQ:AMGN) stock has gained 6.4%, while the industry has dropped 23.6%.

Essential medications from Amgen (NASDAQ:AMGN), such as Prolia, Repatha, and Xgeva, are contributing to volume increase, which in turn is helping boost sales. These medications consistently win the green light for new uses.

Prolia/Xgeva, Vectibix, Enbrel, Aranesp, Kyprolis, Nplate, and Blincyto are among the other drugs that Amgen is looking at expanding their use to. Lumakras and Tezspire, two promising new medications, have shown promising early results. The FDA authorized Lumakras (sotorasib) for advanced non-small cell lung cancer (NSCLC) in the United States in May 2021, and the European Union followed suit in January 2022. The number of countries that have given their blessing to this product has increased to 40. Lumakras label expansion studies, which could significantly increase the present patient pool, are also moving forward quickly. In December 2021, the FDA authorized Tezspire (tezepelumab) to treat severe asthma.

Furthermore, Amgen (NASDAQ:AMGN) is making rapid progress on its early and late-stage assets pipeline. The second half of 2022 will bring several phase III readouts, which could be stock-moving catalysts.

Another critical factor in Amgen’s sustained success is the company’s robust biosimilar portfolio. Amgen sells the biosimilars Kanjinti (a copycat of Roche’s Herceptin) and Mvasi (a copycat of Roche’s Avastin) in the United States, and Amgevita (a copycat of AbbVie’s Humira), Kanjinti, and Mvasi in international markets. Biosimilars of popular immunology drugs like Remicade (J&J (JNJ Quick QuoteJNJ – Free Report) /Merck) were introduced by Amgen in 2020 with the release of Avsola, and 2021 saw the introduction of Riabni (a biosimilar of Roche’s Rituxan). Humira biosimilar Amjevita from AbbVie is scheduled for a 2023 release in the United States.

Stelara (ABP 654) by Johnson & Johnson, Soliris (ABP 959) by Alexion, and Eylea (ABP 938) by Regeneron are all drugs with biosimilars in the last stages of development. A phase III research comparing ABP 654 to J&J’s Stelara found no differences in the primary endpoint. In 2022, we hope to get the preliminary results from the phase III investigations of ABP 959 and ABP 983.

Sales of Amgen’s biosimilars are already over $2 billion per year and are projected to more than treble between 2021 and 2030. thanks to the release of Amjevita and other biosimilars now in the late stages of development.

Amgen (NASDAQ:AMGN) announced in August a definitive deal to buy ChemoCentryx for $52 per share in cash, for a total enterprise value of roughly $3.7 billion. If Amgen can finalize the purchase of ChemoCentryx, it will get access to a promising new growth asset in the form of Tavneos. In October of last year, Tavneos was given the green light to treat antineutrophil cytoplasmic antibody (ANCA) linked vasculitis.

The biotech company Amgen (NASDAQ:AMGN) is not without its issues. Many Amgen medicines, including some biosimilars, are experiencing decreased sales due to intensified pricing headwinds and competitive pressure.

Due to rising competition, Amgen’s net selling price has been falling for several years, and this trend is expected to continue in 2022. Uncertainty in the macro environment is exacerbated by factors such as the European war and the effects of rising interest rates, inflation, supply-chain pressure, and the dollar’s strength.

However, the second half of 2022 could be OK for the stock thanks to the robust growth of essential pharmaceuticals, higher revenues from ex-U.S. countries, improved contribution from its high-quality biosimilars, and cost savings.

Featured Image:  Megapixl @Doityourself13

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About the author: I'm a financial journalist with more than 1.5 years of experience. I worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan. I love to write about marketing and finance. Other than that, I like spending time in the gym and playing PC games.