Amgen Q1 - Good increase in volumes

Amgen reported results which were mostly in line with what the market was expecting. The company increased the volume of drugs sold, but due to a strong Dollar and their changing sales mix, revenue dropped 2%.

Amgen was one of our top-performing stocks last year, registering a 15% gain while the overall market was sharply down, but the stock has struggled this year. The shares had an amazing final quarter in 2022 because of a promising weight-loss drug that is currently in trials. The market has since realised that a long journey is still needed to get final approvals.

Amgen is in a transition phase as a few of their current blockbuster drugs are close to patent expiry. To boost growth they recently bought two drug companies with complementary product portfolios, particularly focused on rare diseases. They also have a strong drug pipeline coming through, with some exciting treatments on the way.

We like the company because it adds balance to our more technology-focused portfolios, and it has a strong 3% per annum dividend yield.