Is AMGN a good stock to buy? We came across a bullish thesis on Amgen Inc. on r/investing_discussion by Variant_Invest. In this article, we will summarize the bulls’ thesis on AMGN. Amgen Inc.’s share was trading at $344.57 as of June 9th. AMGN’s trailing and forward P/E were 23.98 and 15.48 respectively according to Yahoo Finance.
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Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. AMGN is facing a widely acknowledged loss-of-exclusivity (LOE) cliff, with legacy assets such as Enbrel already in decline and Otezla under competitive pressure, yet the market narrative appears to underappreciate the strength and diversification of its replacement engine.
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While consensus frames the upcoming erosion as a structural earnings reset, Amgen’s biosimilars platform has already evolved into a meaningful profit contributor, leveraging decades of biologics manufacturing expertise that creates a durable barrier to entry and positions the company as both incumbent and competitor in the same high-value therapeutic categories. This structural shift meaningfully alters the downside profile of the LOE cycle.
At the same time, the market’s skepticism around Repatha overlooks improving reimbursement dynamics and expanding cardiovascular risk awareness, particularly as GLP-1 therapies elevate the broader cardiometabolic treatment landscape, indirectly reinforcing demand for LDL-lowering therapies with proven outcomes. TEZSPIRE adds another underappreciated growth vector, with severe asthma remaining underpenetrated by biologics and Amgen’s global commercial infrastructure enabling faster adoption than typical emerging peers.
Although the Horizon acquisition has elevated leverage, Amgen’s robust free cash flow generation remains sufficient to comfortably service debt while still funding innovation and shareholder returns. Management’s mid-single-digit revenue growth trajectory through the decade appears conservative relative to pipeline optionality, suggesting embedded upside to consensus expectations.
At current valuation levels, Amgen offers compelling risk-reward profile, combining resilient cash flows, pipeline optionality beyond LOE headwinds, and a biosimilars franchise that monetizes rather than competes against biologic erosion, creating setup where sentiment lags fundamentals and earnings power is being materially underappreciated.
Previously, we covered a bullish thesis on Amgen Inc. (AMGN) by Magnus Ofstad in May 2025, which highlighted strong pipeline assets, biosimilars strength, and resilient earnings despite LOE pressures. AMGN’s stock price has appreciated by approximately 22.52% since our coverage. Variant_Invest shares a similar view but emphasizes biosimilar-driven downside protection and cash flow durability over pipeline-led upside.
Amgen Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held AMGN at the end of the first quarter which was 70 in the previous quarter. While we acknowledge the risk and potential of AMGN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMGN and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
