Better with age
Lastly, Amgen, Inc. (NASDAQ:AMGN), perhaps the performer out of the three is the most established. Shares have return 12% this year, down 15% from the highsseen back in April. Since 1980 Amgen, Inc. (NASDAQ:AMGN) has been a leader in the biotechnology industry. The company has 10 products current on the market including many familiar names such as Embrel. The company, alongside over 100 partners, has developed a great pipeline with 45 drugs participating in Phase 1 through Phase 3 trials. The company announced earlier this month a partnership with Cytokinetics to expands its licensing agreement on the omecamtiv mecarbil drug in Japan. This is one of many deals the company has pursued to grow its presence in the country. Cytokinetics will announce its Phase 2 results in August, if positive, both company’s could see significant price appreciation. Being the elder of the group, the company trades at only 13 times earnings. At these levels, Amgen, Inc. (NASDAQ:AMGN) is a value play, considering 11.5% and 14.5% estimated growth, respectively, over the next two years.
While the market looks to predict Ben’s every move, sit back and get your shopping list ready. I am looking to take advantage of any broad weakness to repurchase my positions in Gilead, Celgene Corporation (NASDAQ:CELG), and Amgen, Inc. (NASDAQ:AMGN). All three companies are well diversified and positioned well for long term growth. Gilead and Celgene Corporation (NASDAQ:CELG) look under-priced at these levels. Both companies trade with PEG ratios below 1, leading me to believe shares are trading at a discount to growth.
The article Biting Into Biotechnology originally appeared on Fool.com and is written by Nathaniel Matherson.
Nathaniel Matherson has no position in any stocks mentioned. The Motley Fool recommends Celgene and Gilead Sciences. Nathaniel is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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