Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Amgen, Inc. (AMGN)’s Potential Promise

Last Friday, Zacks released a new report were it reconfirmed its neutral rating for Amgen, Inc. (NASDAQ:AMGN). This company is the world’s largest independent biotechnology firm, dedicated to the discovery, development, manufacturing and delivery of innovative human therapeutics. According to Zacks, Amgen, Inc. (NASDAQ:AMGN) “reported second quarter EPS of $1.88, up 3.3% and 17 cents above the Zacks Consensus Estimate. Revenues increased 5% to $4.7 billion, topping the Zacks Consensus Estimate of $4.5 billion”.

Amgen, Inc. (NASDAQ:AMGN)

At a first glance Amgen, Inc. (NASDAQ:AMGN)’s second quarter might look rather remarkable with the company beating estimates by a huge margin. Nevertheless, Zacks argues that revenues “included a positive Medicaid adjustment impact which boosted the bottom line by 16 cents”. Also, a lower tax rate and share count have benefited the company’s earnings.

On the long term, the company should be able to deliver on its expansion in key markets-based strategy. With new partners such as GlaxoSmithKline and Daiichi Sankyo, the company will be able to expand to Japan, Europe, Australia, New Zealand and Mexico, as well as  China, India, Brazil and Taiwan were the firm does not have a commercial presence. It has also acquired the Turkish firma Mustafa Nevzat Pharmaceuticals, expanding its horizons to Turkey and other rapidly growing markets, as stated by Zacks. All in all, Amgen, Inc. (NASDAQ:AMGN) expects to have a presence in 75 countries by 2015 and to generate more than $1 billion in sales from their presence in this new emerging markets.

The company’s growth also relies on the launch of new manufacturing technologies and on the development of its pipeline. In March 2012 Amgen acquired the biotech company Micromet, Inc. for close to $1.16 billion, which expanded its oncology pipeline. In last August, Amgen, Inc. (NASDAQ:AMGN) entered into a deal to acquire the firm Onyx. This acquisition represents a fresh influx of products into its pipelines that will also help make up for a part of the revenues lost to generic competition. Also it will strengthen the company’s presence in the oncology market.

This last acquisition, altogether with the company’s healthy growing dividend, could make Amgen a solid investment in the long term. Zacks expects the years 2013 and 2014 to be important for the company. They are expected to show results on several key pipeline candidates that –if successful– will continue to make this firm one of the most committed to advancing science to effectively improve the lives of people.

Disclosure: Pamela Gaviño holds no position in any stocks mentioned

Recommended Reading:

Amgen, Inc. (AMGN), Teva Pharmaceutical Industries Ltd (ADR) (TEVA): The Neulasta Question

Amgen, Inc. (AMGN), Impax Laboratories Inc (IPXL): Keryx Biopharmaceuticals (KERX)’s Stifel Conference Presentation

Aegerion Pharmaceuticals, Inc. (AEGR): Cheers and Jeers for Amgen, Inc. (AMGN)’s Pipeline

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.