Amgen Inc Stock Fair Value Calculation – BMO Upgrades Amgen, citing Untapped Opportunity in Obesity and Metabolic Care

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Amgen Inc ($NASDAQ:AMGN). is a biotechnology company based in Thousand Oaks, California. It is one of the largest independent biotechnology companies in the world, and is best known for its development and production of drugs that treat a range of conditions, from cancer to inflammation. Recently, BMO has upgraded Amgen citing an untapped opportunity in the obesity and metabolic care sector. BMO believes that Amgen’s current stock price is undervalued, and that now is the perfect time to invest in the company.

BMO’s research suggests that Amgen’s drugs could be used to treat conditions related to obesity and metabolic diseases such as type 2 diabetes, non-alcoholic fatty liver disease, and metabolic syndrome. With the rising prevalence of these conditions, the market for treatments in this sector is growing rapidly. BMO believes that Amgen’s existing drug portfolio has the potential to tap into this market and bring significant returns on investment.

Share Price

On Tuesday, shares of AMGEN INC opened at $278.7 and closed at $278.4, up by 1.1% from the prior closing price of $275.5. The stock was given an upgrade by Bank of Montreal (BMO) Capital Markets, citing the potential opportunity in obesity and metabolic care. BMO pointed to the potential for Amgen’s obesity drug, Otezla, to contribute to the company’s growth due to its strong efficacy profile and novel combination of mechanisms.

Additionally, BMO highlighted Amgen’s cardiovascular and diabetes portfolio, which includes Repatha, a powerful injectable that has been proven to lower LDL cholesterol levels. Furthermore, Amgen is investing in clinical research to explore new opportunities for Otezla in areas such as pain management, and is also working on a new treatment for nonalcoholic steatohepatitis (NASH). With these promising new areas of research in development, investors may consider adding Amgen to their portfolios. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Amgen Inc. More…

Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Amgen Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Amgen Inc are shown below. More…

Analysis – Amgen Inc Stock Fair Value Calculation

At GoodWhale, we conducted an analysis of the fundamentals of AMGEN INC. Our proprietary Valuation Line indicated that the intrinsic value of an AMGEN INC share is approximately $274.4. Currently, AMGEN INC stock is traded at $278.4, which implies that it is slightly overvalued by 1.4%. This means that investors should be cautious if they intend to buy into this stock, as it may not offer the best value for money in the current market conditions. More…

Peers

The competition between Amgen Inc and its competitors is fierce. Amgen Inc is the largest biotechnology company in the world, with a market capitalization of over $100 billion. Its competitors, Gilead Sciences Inc, Eli Lilly and Co, and Biogen Inc, are all large, well-established companies with significant resources. each company is striving to develop the best products and to gain market share. The competition is intense, and each company is working hard to win.

– Gilead Sciences Inc ($NASDAQ:GILD)

Gilead Sciences Inc is a biopharmaceutical company that focuses on the discovery, development, and commercialization of drugs. The company was founded in 1987 and is headquartered in Foster City, California. Gilead Sciences Inc has a market cap of 83.2B as of 2022, a Return on Equity of 24.03%. The company’s key products include HIV/AIDS treatment, hepatitis C treatment, and oncology products. Gilead Sciences Inc also has a pipeline of products in development for various indications, including HIV, hepatitis B, non-alcoholic steatohepatitis, and respiratory syncytial virus.

– Eli Lilly and Co ($NYSE:LLY)

Eli Lilly and Co is a pharmaceutical company headquartered in Indianapolis, Indiana. The company was founded in 1876 by Colonel Eli Lilly. The company develops and markets products in the areas of diabetes, oncology, immunology, neuroscience, and other areas. Lilly has operations in more than 60 countries and sells products in more than 125 countries. Lilly has been one of the world’s leading innovators in the pharmaceutical industry, with products such as Prozac, Zyprexa, and Cialis. The company has a market cap of 316.18B as of 2022 and a Return on Equity of 45.88%.

– Biogen Inc ($NASDAQ:BIIB)

Biogen Inc. is a global biotechnology company. The company is engaged in the discovery, development, manufacturing and commercialization of therapies for the treatment of neurodegenerative diseases, hematologic conditions and autoimmune diseases. Biogen has a market cap of $39.12B as of 2022 and a return on equity of 14.98%. The company’s products include aducanumab, a monoclonal antibody for the treatment of Alzheimer’s disease; SPINRAZA, a therapeutic agent for the treatment of spinal muscular atrophy; and TYSABRI, a monoclonal antibody for the treatment of multiple sclerosis.

Summary

AMGEN Inc. has recently been upgraded by BMO on the basis of an underappreciated opportunity in the obesity/metabolic space. Analysts believe that the company can benefit from its strong portfolio, particularly in biologics, and further exploit opportunities in the biosimilar and generic markets. Investors are encouraged to consider buying AMGEN Inc.’s shares given its potential for growth and strong balance sheet.

Additionally, its efforts in developing new treatments and therapies are expected to provide long-term growth potential. With its pipeline of new products and its focus on cost efficiency and productivity, AMGEN Inc. is well-positioned to take advantage of the opportunities presented in the obese/metabolic space.