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Here's How Much a $1000 Investment in Amgen Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Amgen (AMGN - Free Report) ten years ago? It may not have been easy to hold on to AMGN for all that time, but if you did, how much would your investment be worth today?
Amgen's Business In-Depth
With that in mind, let's take a look at Amgen's main business drivers.
Thousand Oaks, CA-based Amgen is one of the biggest biotech companies in the world, with a strong presence in the oncology/hematology, cardiovascular disease, neuroscience, inflammation, bone health and nephrology and neuroscience markets. The company used advances in cellular and molecular biology to develop two of the biotech industry’s earliest and most successful drugs, Epogen (anemia) and Neupogen (white blood cell stimulant). Amgen successfully launched two next-generation products, Aranesp and Neulasta. Meanwhile, the acquisition of Immunex Corporation gave Amgen access to the multi-blockbuster drug, Enbrel. However, all these older drugs are facing declining sales due to biosimilar or branded competition, which is being somewhat offset by its blockbuster growth drugs like Prolia and Xgeva. Other products are Repatha, Blincyto, Vectibix, Nplate, Kyprolis, Evenity, Otezla, Aimovig, Lumakras/Lumykras, Tezspire, Tavneos, Kanjinti, Mvasi and Amgevita biosimilars.
Amgen also has a promising pipeline of cancer drugs. It has one of the strongest cash positions in the biotech sector, which could be used to acquire more pipeline assets that could fuel long-term growth. Biosimilar drugs are also a key part of Amgen’s growth strategy.
In October 2023, Amgen acquired Horizon Therapeutics for $27.8 billion.
Epogen/Aranesp, Neupogen/Neulasta and Enbrel account for around 30% of Amgen’s product revenues in 2022. Enbrel alone accounted for 16.6% of sales. Prolia accounted for 14.6% of product sales in 2022. While Xgeva accounted for 8.1% of sales, Otezla accounted for 9.2% of Amgen’s product sales in 2022.
Amgen derives the bulk of its revenues from the domestic market (71.5% of total product sales in 2022). The company posted global sales of $26.3 billion in 2022, up 1% year over year.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Amgen ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2014 would be worth $2,626.80, or a gain of 162.68%, as of January 4, 2024, and this return excludes dividends but includes price increases.
The S&P 500 rose 156.90% and the price of gold increased 58.55% over the same time frame in comparison.
Going forward, analysts are expecting more upside for AMGN.
Amgen expects strong sales growth of products like Tezspire, Evenity, Repatha, Prolia and Tavneos to be offset by lower revenues from oncology biosimilars and legacy established products such as Enbrel in the future quarters. The addition of Horizon Therapeutics has given Amgen a significant rare disease business. Amgen also has some key pipeline assets in obesity and inflammation, which are indications that can have a large market opportunity. Several data readouts are expected in the next 12 months. However, increased pricing headwinds and competitive pressure are hurting sales of many products, including some biosimilars. Weakness in some key brands like Otezla and Lumakras create potential revenue headwinds. Amgen’s shares have outperformed the industry in the past one year.
Shares have gained 11.64% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Amgen Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Amgen (AMGN - Free Report) ten years ago? It may not have been easy to hold on to AMGN for all that time, but if you did, how much would your investment be worth today?
Amgen's Business In-Depth
With that in mind, let's take a look at Amgen's main business drivers.
Thousand Oaks, CA-based Amgen is one of the biggest biotech companies in the world, with a strong presence in the oncology/hematology, cardiovascular disease, neuroscience, inflammation, bone health and nephrology and neuroscience markets. The company used advances in cellular and molecular biology to develop two of the biotech industry’s earliest and most successful drugs, Epogen (anemia) and Neupogen (white blood cell stimulant). Amgen successfully launched two next-generation products, Aranesp and Neulasta. Meanwhile, the acquisition of Immunex Corporation gave Amgen access to the multi-blockbuster drug, Enbrel. However, all these older drugs are facing declining sales due to biosimilar or branded competition, which is being somewhat offset by its blockbuster growth drugs like Prolia and Xgeva. Other products are Repatha, Blincyto, Vectibix, Nplate, Kyprolis, Evenity, Otezla, Aimovig, Lumakras/Lumykras, Tezspire, Tavneos, Kanjinti, Mvasi and Amgevita biosimilars.
Amgen also has a promising pipeline of cancer drugs. It has one of the strongest cash positions in the biotech sector, which could be used to acquire more pipeline assets that could fuel long-term growth. Biosimilar drugs are also a key part of Amgen’s growth strategy.
In October 2023, Amgen acquired Horizon Therapeutics for $27.8 billion.
Epogen/Aranesp, Neupogen/Neulasta and Enbrel account for around 30% of Amgen’s product revenues in 2022. Enbrel alone accounted for 16.6% of sales. Prolia accounted for 14.6% of product sales in 2022. While Xgeva accounted for 8.1% of sales, Otezla accounted for 9.2% of Amgen’s product sales in 2022.
Amgen derives the bulk of its revenues from the domestic market (71.5% of total product sales in 2022). The company posted global sales of $26.3 billion in 2022, up 1% year over year.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Amgen ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2014 would be worth $2,626.80, or a gain of 162.68%, as of January 4, 2024, and this return excludes dividends but includes price increases.
The S&P 500 rose 156.90% and the price of gold increased 58.55% over the same time frame in comparison.
Going forward, analysts are expecting more upside for AMGN.
Amgen expects strong sales growth of products like Tezspire, Evenity, Repatha, Prolia and Tavneos to be offset by lower revenues from oncology biosimilars and legacy established products such as Enbrel in the future quarters. The addition of Horizon Therapeutics has given Amgen a significant rare disease business. Amgen also has some key pipeline assets in obesity and inflammation, which are indications that can have a large market opportunity. Several data readouts are expected in the next 12 months. However, increased pricing headwinds and competitive pressure are hurting sales of many products, including some biosimilars. Weakness in some key brands like Otezla and Lumakras create potential revenue headwinds. Amgen’s shares have outperformed the industry in the past one year.
Shares have gained 11.64% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.