Amgen Inc. (AMGN:NSD) News:
Amgen Inc., a leading biotechnology company based in California, has reported a lower first-quarter profit for 2023. The company’s expenses increased significantly, and revenue from its deal to manufacture COVID-19 antibody treatments for Eli Lilly decreased, offsetting a 2% increase in sales of its own drugs. Despite this, Amgen’s revenue for the quarter was close to analysts’ estimates of $6.17 billion, coming in at $6.11 billion, down 2% from the previous year.
The operating expenses for the first quarter increased by 6%, and research and development costs rose by 12%. Amgen cited a Puerto Rico tax law change as the primary reason for the company’s tax rate to rise 5.6 percentage points. These factors combined to impact the company’s profitability in the first quarter.
Amgen slightly increased its forecast for full-year 2023 revenue, projecting a range of $26.2 billion to $27.3 billion, excluding the impact of its pending acquisition of Horizon Therapeutics. This outlook represents a slight increase from the previous forecast of $26 billion to $27.2 billion, indicating the company’s confidence in its long-term prospects.
Despite the challenges faced by the company in the first quarter, Amgen’s strong position in the biotechnology sector is evident. The company has a robust pipeline of innovative treatments and therapies, including biosimilars and oncology drugs. Amgen’s commitment to research and development is a key driver of its success, with the company investing heavily in this area to continue developing cutting-edge treatments and cures.
The biotechnology industry is a highly competitive and dynamic sector, with companies facing significant challenges such as regulatory hurdles, clinical trial setbacks, and patent expirations. Amgen’s ability to navigate these challenges and maintain a strong position in the market is a testament to its dedication to innovation and its focus on developing high-quality treatments that improve patient outcomes.
Analysts Coverage Change:
Piper Jaffray Co. (RANK #16) maintains an “Overweight” rating for Amgen Inc., indicating that they believe the stock will outperform the overall market.
However, the firm has lowered its price target for the company to $288 from $293, which means that they have decreased their estimate of Amgen’s future stock price. This could be due to a variety of factors, including changes in the broader market, shifts in the biotechnology industry, or developments specific to Amgen.
Amgen Inc Stock Forecast:
According to 21 analysts, the average target price for Amgen Inc over the next 12 months is USD 271.74, and the average analyst rating is Hold. Stock Target Advisor’s analysis of the company is Bullish based on 10 positive signals and 3 negative signals. As of the last closing, Amgen Inc’s stock price was USD 240.34, which is a change of -1.28% over the past week, +1.51% over the past month, and -3.40% over the last year.