Amgen Q4 - Mix of Old and New Drugs


Last week our favoured biotech stock, Amgen, released results for the fourth quarter and full year 2018. As we have alluded to before, Amgen is going through a phase where a few of their blockbuster drugs are slowing down because of off-patent competition. At the same time they are pushing new exciting drugs into the market. That is not always as easy as it sounds, even if you assume the drug works really well. You still need to convince the doctors, insurers and hospitals to endorse the product.


Amgen Q3 - Beats expectations


Amgen is another core holding in Vestact US portfolios, and had results out after the bell last night. As you know, it is one of the world's leading biotechnology companies, with a focus on cardiovascular disease, oncology, bone health, neuroscience, nephrology and inflammation.


Amgen invests in Oxford Nanopore


When there is a lot going on in the general news, it's useful to refocus on company specific updates. After all, we invest in actual enterprises which do useful things in the real world, and get paid.


Amgen's new Drugs


Amgen is a core holding in Vestact US portfolios. It is one of the world's leading biotechnology companies, and it closed at a lifetime high of $207.21 last night, giving it a market capitalisation of $134 billion.


Amgen 2Q - strong pipeline


On Thursday the world's largest biotech firm Amgen reported a better-than-expected set of numbers for their second quarter. Amgen raised their full-year forecast, as the company sees more growth stemming from Prolia, an osteoporosis drug, and Repatha, a drug that fights bad cholesterol.


Amgen 1Q numbers - in with the new


We are deep into quarterly US earnings season now, and what an exciting time it is! It's great to get detailed updates from all of our core Vestact portfolio holdings, and to see the market reactions.


Amgen FY numbers - strong line up


Amgen's fourth-quarter results came out late last week. The stock price has done pretty well in the last three months, almost getting to $200 per share. It's at $187 per share now, giving the company a market capitalisation of $135.8 billion.


Amgen 3Q numbers - Beat expectations


On Wednesday we had 3rd quarter results from Amgen. Remember these guys discover, develop and manufacture various human therapeutics. When looking at this company, all focus needs to be on their portfolio of therapies; what they cure, competition, FDA approval, medical aid adoption, doctor adoption, side effects, how the therapy is administered, regulation and many more factors. Fortunately, Amgen has a market cap of $130bn (30% bigger than Naspers) and boasts a portfolio of more than 13 mainstream products with annual sales ranging from $150m to $6bn.


Amgen 2Q numbers - guides higher


Amgen Reported their Q2 2017 results aftermarket yesterday, with both a top-line and a bottom line beat. Earnings per share clocked 3.27 US Dollars (up 15 percent) on revenues of 5.81 billion Dollars (up 2 percent). Whilst there was momentum on their new products, there was a definite slowdown on their older products which obviously face increasing competition over time. It is the nature of the beast. Which is why, when owning a business in this very important space, healthcare, you need to find a business like Amgen, which has multiple lines in the water, so to speak. To illustrate this point, you need to look no further than to the breakdown per therapy:


Amgen 1Q numbers - Reliant on blockbuster drugs


The Amgen share price has been under pressure since Friday the 13th of March this year. Well, let me rephrase that. The Amgen share price took a knock on that day as a result of a fairly innocuous release: Repatha (Evolocumab) Demonstrates Reduced Need For Apheresis In Patients With High LDL Cholesterol In Phase 3 Study. Let us just say that the outcome was not what people expected.


Amgen - Repatha not as effective as hoped


On Friday before the US market opened we had the results from a large scale study on the effectiveness of Amgen's Repatha drug which lowers cholesterol. The results from the drug were positive but not positive enough for traders, the stock fell 6.4% on Friday (Amgen is getting whacked after disappointing study results for its $14,000 cholesterol drug). The big thing to note about this drug is that it costs between $8 000 - $15 000, depending on the dosage required. As you can imagine, insurance companies are not keen to shell out that kind of money without proof that the drug has benefits. The main benefit needed is a reduction in the number of people having heart attacks and needing to be hospitalized, which could cost insurers more than the cost of Repatha.


Amgen 4q & FY numbers - The biggest company you have never heard of


Amgen reported numbers on Thursday evening, after the market closed. I think for the purposes of this 4th quarter update, it is worth publishing a sales table of all of their therapies to explain where the business is right now.


Amgen wins patent court case


It is not often that one has to watch legal judgments with your stocks, you would hope that the companies you own stay out of the courts. That is nigh impossible in the modern era though, there is always much open to interpretation. See the story that concerns one of our stocks - Amgen Wins Ban on Sanofi's Praluent Cholesterol Drug Sales. As you can see from the story, Regeneron and Sanofi will appeal this ruling.


Amgen 3Q numbers - concerns over key drugs


Amgen reported their numbers post the market close last Thursday evening. The stock was completely smoked. By Friday close of trade the stock had lost nearly ten percent, the worst single day loss for 14 years. Why? Was there anything fundamentally wrong with the numbers? At face value the results and guidance looked decent enough. There have been several concerns about their best sellers coming under volume and price threats. Let us be clear when we are talking about these pharma businesses that one is able to invest in, there is a very fine line between the company dedicating in the teens of revenues for research and development (looking for new life changing therapies), billions of Dollars and then the cost to broader society, who essentially pays after the therapy has passed all the regulatory requirements.


Amgen 2Q 2016 numbers - strong pipeline


Amgen reported numbers last week - Second Quarter 2016 Financial Results. It is not as tough to report on a company that has a very focused consumer front facing business, in many cases we use loads of consumer products like Apple (your phone or computer), Google search (or Android phones), Facebook (Instagram and WhatsApp), Amazon (reading your Kindle, ordering online), Nike (go for a run or to gym), JNJ and L'Oreal (shampoos and consumer products), Netflix even, perhaps even Priceline ( Whilst you are wearing your Luxottica (sunglasses) products. Those businesses you know and use, and you are very familiar with.


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