AMGN trades at only 15x forward earnings when the rest of the industry is trading at 20 or more. It has a great pipeline and should trade at at least 20x forward earnings. That would put it at $213. I added AMGN to my portfolio for 2016. This is one of the best values in Biopharma.
The rumor mill of mergers and acquisitions that surrounds thepharmaceutical industry has thrown up the names of Johnson & Johnson and Amgen, with the former reportedly poised to launch a takeover bid of the biotechnology firm based in Thousand Oaks, California, USA.
However, skepticism among several analysts as to the likelihood of any such deal is widespread. David Saks at Gruntal dismisses the idea as "sheer poppycock," saying that if there were a takeover of Amgen, it almost definitely would not be by J&J, which has a history of buying mid-sized companies and nurturing their growth. He pointed to J&J's purchase of Cordis in 1996 as a prime example of the company's strategy.
Mr Saks argues that Amgen is too big for J&J's cultural and intellectual approach, adding that it would have to pay a premium for Amgen which would push the price up to around $25 billion. J&J prefers to develop internally rather than spend that amount of money on an acquisition.
J&J/Amgen Not On Good Terms Other analysts believe that if there were to be a takeover bid, it would be a fairly unfriendly one. James Keeney of ABN-AMRO said the two firms have hated each other since the fallout that followed a 1985 agreement between the Ortho Pharmaceutical Division of J&J and Amgen, which licensed Ortho the right to non-dialysis uses of Epogen (epoetin alfa).
Disputes arose over dialysis and non-dialysis use of the treatment (hospitals often stocked either one or the other product) which led to a lengthy spillover sales arbitration case. It was ruled that Amgen owed J&J $200 million, which was partially offset by the latter paying Amgen $100 million in legal fees (Marketletter April 20).
Mr Keeney also suggested that Amgen is still smarting over J&J's decision not to develop two potential drugs - a hepatitis B vaccine and an interleukin-2 - that were licensed as part of the 1985 agreement. This deprived Amgen of potentially large royalties, while other companies seized the opportunit
as you can see....no one is hearing this. More made up #$%$ by some anonymous poster with a name starting with goog. There is a potential law coming, especially if Hillary gets in, that will push the biotech values back down....so why would anyone buy now? Just wait a year. Market always crashes after the end of an 8-year presidential run. You will be able to buy Amgen for $20/share less. That's a lot of coin.
you sound like one of those idiots posting about signing up for some stock market #$%$ with that bold statement and nothing to back it up nor anything anyone really cares about.
Dec 18: "This biotech staple may not inspire too many oohs and ahhs in terms of original stock picks, but there is something going on behind the Amgen Inc. (NASDAQ: AMGN) curtain that makes it a little bit more than a bland large cap allocation for 2016. That is, its focus on biosimilars. Biosimilars are biologics that seek to replace an existing therapy by proving no meaningful clinical difference in efficacy. They are cheaper to develop and already have proven markets.
Amgen has three late stage biosimilars in its pipeline, all in Phase 3 or having already completed it. Two of them seek to compete with Roche blockbusters. One is a biosimilar of Avastin, which sold $6.6 billion last year, and the second looks to replace Herceptin, both cancer treatments. The third, APB 501, already has been filed for approval, having met its Phase 3 endpoints for biosimilarity to Humira. This, combined with Humira’s imminent patent expiration, means Amgen could capitalize well on APB 501 in 2016."