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Will Amgen (AMGN) Continue to Tread Growth Path This Year?
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Amgen, Inc.’s (AMGN - Free Report) stock was up 19% in 2017, which compared favorably with a gain of 2.8% recorded by the industry.
Last year’s share price surge was supported by a series of positive news including promising data from several pivotal studies and rapid progress with its pipeline and line extensions.The positive trend is likely to continue this year as well.
What Backed the Stock’s Rally in 2017?
A few new products were approved last year. While the FDA approved Mvasi - Amgen and Allergan’s biosimilar version of Roche’s (RHHBY - Free Report) cancer drug, Avastin - and Parsabiv for secondary hyperparathyroidism (sHPT), EU approved Amgevita, Amgen’s biosimilar version of Humira,
Amgen also gained approval for several line extensions - FDA approval to include a new indication - risk reduction of major cardiovascular events data – on Repatha’s labeland overall survival datafrom the TOWER study on leukemia drug Blincyto’s label; approval for arefined indication for metastatic colorectal cancerdrug Vectibix and EU approval for a pediatric formulation of Mimparafor secondary hyperparathyroidism (sHPT).
The line extensions can expand the eligible patient populations of these drugs and drive their sales higher in future quarters.
In 2017, Amgen made several data presentations from studies evaluating line extensions on key marketed products, Repatha and Kyprolis- both with blockbuster potential - and other studies on its pipeline candidates, tezepelumab(asthma) and Evenity(osteoporosis)
Factors Likely to Support the Stock in 2018
With several pivotal data readouts and regulatory milestones expected in 2018, the bullish run of the stock is likely to continue.
This year, Amgen expects regulatory approval for pipeline candidates, Aimovig/erenumab(prevention of episodic and chronic migraine) and Evenity and label expansion for Prolia and Kyprolis. This month, Amgen already received FDA approval for an expanded patient population for Xgeva - multiple myeloma patients. In the biosimilars portfolio, Amgen expects EU approval for Mvasi and FDA/EU approval for the biosimilar version of Roche’s other cancer drug, Herceptin.
Also, Amgen’s newer drugs – Prolia, Xgeva, Vectibix, Nplate and Sensipar – are performing well, a trend expected to continue next year, which should drive sales. Sales of other newer products like Kyprolis, Repatha and Blincyto are expected to pick up in 2018 as they were approved forlabel expansions last year.
Besides this, Amgen’s restructuring plan is making it leaner and more cost efficient,which should lend support to the bottom line.
Though Amgen faces some challenges, given the presenceof biosimilar competition, slowdown in sales of mature drugs, mainly its blockbuster drug Enbrel, the positives are expected to outweigh the headwinds.
Amgen markets Enbrel in partnership with Pfizer, Inc. (PFE - Free Report)
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Will Amgen (AMGN) Continue to Tread Growth Path This Year?
Amgen, Inc.’s (AMGN - Free Report) stock was up 19% in 2017, which compared favorably with a gain of 2.8% recorded by the industry.
Last year’s share price surge was supported by a series of positive news including promising data from several pivotal studies and rapid progress with its pipeline and line extensions.The positive trend is likely to continue this year as well.
What Backed the Stock’s Rally in 2017?
A few new products were approved last year. While the FDA approved Mvasi - Amgen and Allergan’s biosimilar version of Roche’s (RHHBY - Free Report) cancer drug, Avastin - and Parsabiv for secondary hyperparathyroidism (sHPT), EU approved Amgevita, Amgen’s biosimilar version of Humira,
Amgen also gained approval for several line extensions - FDA approval to include a new indication - risk reduction of major cardiovascular events data – on Repatha’s labeland overall survival datafrom the TOWER study on leukemia drug Blincyto’s label; approval for arefined indication for metastatic colorectal cancerdrug Vectibix and EU approval for a pediatric formulation of Mimparafor secondary hyperparathyroidism (sHPT).
The line extensions can expand the eligible patient populations of these drugs and drive their sales higher in future quarters.
In 2017, Amgen made several data presentations from studies evaluating line extensions on key marketed products, Repatha and Kyprolis- both with blockbuster potential - and other studies on its pipeline candidates, tezepelumab(asthma) and Evenity(osteoporosis)
Factors Likely to Support the Stock in 2018
With several pivotal data readouts and regulatory milestones expected in 2018, the bullish run of the stock is likely to continue.
This year, Amgen expects regulatory approval for pipeline candidates, Aimovig/erenumab(prevention of episodic and chronic migraine) and Evenity and label expansion for Prolia and Kyprolis. This month, Amgen already received FDA approval for an expanded patient population for Xgeva - multiple myeloma patients. In the biosimilars portfolio, Amgen expects EU approval for Mvasi and FDA/EU approval for the biosimilar version of Roche’s other cancer drug, Herceptin.
Also, Amgen’s newer drugs – Prolia, Xgeva, Vectibix, Nplate and Sensipar – are performing well, a trend expected to continue next year, which should drive sales. Sales of other newer products like Kyprolis, Repatha and Blincyto are expected to pick up in 2018 as they were approved forlabel expansions last year.
Besides this, Amgen’s restructuring plan is making it leaner and more cost efficient,which should lend support to the bottom line.
Though Amgen faces some challenges, given the presenceof biosimilar competition, slowdown in sales of mature drugs, mainly its blockbuster drug Enbrel, the positives are expected to outweigh the headwinds.
Amgen markets Enbrel in partnership with Pfizer, Inc. (PFE - Free Report)
Amgen carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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