The biotechnology industry has rightfully received a huge amount of attention from investors this year thanks to the pandemic. For the development of a COVID-19 vaccine or a treatment, record-breaking investments have already been made in this industry by both government and private organizations. In addition…
the demand for new drugs and treatments is increasing due to a renewed focus on the industry.
The SPDR S&P Biotech ETF (XBI), which is an indicator of the performance of biotechnology and stocks, has gained more than 78.8% since hitting its low in mid-March. This compares to the S&P 500’s 39.7% return over the same period.
The industry still has immense growth potential. According to a Fior Markets report, the global biotechnology market is expected to grow at a CAGR of 7.02% from $447.92 billion in 2019 to $ 833.34 billion by 2027.
Amgen, Inc. (AMGN)
AMGN is one of the world’s leading independent biotechnology companies with a focus on developing human therapeutic medication for the treatment of cardiovascular, oncology, and neuroscience related diseases.
On October 8th, AMGN, Cytokinetics (CYTK), and Servier announced positive topline results from GALACTIC-HF, a Phase 3 pivotal clinical trial of omecamtiv mecarbil in patients with heart failure with reduced ejection fraction (HFrEF).
On October 5th, the company announced positive topline Phase 2 results from the CodeBreaK 100 clinical study, evaluating sotorasib (proposed INN for AMG 510) in 126 patients with KRAS G12C-mutant advanced non-small cell lung cancer (NSCLC), who had failed a median of two prior lines of anti-cancer therapies (immunotherapy and/or chemotherapy).
In September 2020, the company had entered into a global antibody manufacturing collaboration with Eli Lilly and Company (LLY) to significantly increase the supply capacity available for Lilly’s potential COVID-19 therapies. This would allow the two companies to generate profits from scaled up production and supply.
AMGN reported a 6% year-over-year increase in total revenues to $6.2 billion for the second quarter ending June 2020. EPS increased 7% from the year-ago value to $4.25, surpassing the consensus estimates by 11.3%.
Analysts expect the company’s revenue to grow 11.6% for the quarter that ended September 2020 and 8.8% in the current year. EPS is expected to grow 2.7% for the last completed quarter and 5.7% in the current year. Also, the market expects the EPS to grow at a rate of 7.2% per annum over the next five years. For the second quarter ending in June, the company had $2.8 million in cash from operations and generated $4.56 million in free cash flow.
AMGN has gained around 35% since hitting its 52-week low in mid-March. The stock hit its 52-week high of $264.97 in July.
How does AMGN stack up for the POWR Ratings?
A for Trade Grade
B for Buy & Hold Grade
A for Peer Grade
B for Overall POWR Rating.
It is also ranked #1 out of 384 stocks in the Biotech industry.
Immunomedics, Inc. (IMMU)
IMMU is a leading biopharmaceutical company developing monoclonal antibody-based products for targeted cancer treatment. It recently transitioned from a research and development organization into a fully-integrated global biopharmaceutical company.
Its pipeline comprises six clinical stage product candidates. In September, Gilead Sciences (GILD) announced that…
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