AMGN & Large Cap Pharma

AMGEN Inc.

Healthcare


Presented:01/29/2020
Price:$227.15
Cap:$134.97B
Current Price:$325.09
Cap:$174.68B

Presented

Date01/29/2020
Price$227.15
Market Cap$134.97B
Ent Value$165.15B
P/E Ratio17.65x
Book Value$16.37
Div Yield2.55%
Shares O/S594.18M
Ave Daily Vol2,270,493
Short Int1.53%

Current

Price$325.09
Market Cap$174.68B
Amgen, Inc. is a biotechnology company, which engages in the discovery, development, manufacture and marketing of human therapeutics. Its products include the following brands: Aranesp, BLINCYTO, Corlanor, ENBREL, EPOGEN, IMLYGIC, KYPROLIS, Neulasta, NEUPOGEN, Nplate, Parsabiv, Prolia, Repatha, Sensipar, Vectibix, and XGEVA. The company was founded by William K. Bowes, Jr., Franklin Pitcher Johnson, Jr., George B. Rathmann and Joseph Rubinfeld on April 8, 1980 and is headquartered in Thousand Oaks, CA.

Publicly traded mentioned companies herein: Abbott Laboratories (ABT), Amgen Inc (AMGN), Regeneron Pharmaceuticals Inc (REGN), Takeda Pharmaceutical Co Ltd (4502:JP)

Highlights

The presenter is short large cap pharma as a group, anticipating the potential for more strict regulation around drug pricing (e.g., President Trump's proposed International Price Index (IPI). Importantly, the IPI (which would base Medicare Part B drug prices on an international average of prices in mostly European countries) does not require congressional support and could take effect through executive action, perhaps later on this year (2020). In the event of the IPI taking effect, drug prices for the top 25 drugs would get reduced in the US. As a result, companies like Amgen could see a 40% cut in earnings. 

Over the last 3 years, the Trump administration has focused on trade imbalances, defense spending and drug pricing reform. 

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Idea Discussion

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