Is Amgen a Stock to Buy?
Revenue growth is slowing at biotech giant Amgen (NASDAQ: AMGN), and yet the shares are trading near a record high. The share price is a reflection of years of revenue, profit, and a portfolio of more than 20 products. In the world of biotech, where many companies are still in the clinical or pre-clinical stage and any revenue source is years down the road, there is value in a portfolio the size of Amgen's. The biotech company has also steadily increased its dividend since 2011. And investors are clearly paying for that. But now the question is: Can the stock move higher from here?
Amgen focuses on diseases that affect large portions of the population, such as asthma, rheumatoid arthritis, and cardiovascular disease, to name a few. The company has about 45 drug candidates in clinical trials, and nearly half of them are in phase 3 studies. Amgen is also working in the up-and-coming area of biosimilars, or drugs that are highly similar to an already approved biological treatment. Amgen has four approved biosimilars and others in the pipeline.
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Source Fool.com
