AMGN Up Almost 14% YTD: Should You Buy, Sell or Hold the Stock?

Core Insights - Amgen's stock has increased by 13.5% year-to-date, outperforming the industry, sector, and S&P 500 Index [1][9][10] Revenue Drivers - Key medicines such as Repatha, Evenity, and Blincyto, along with newer products like Tavneos and Tezspire, are driving sales growth, compensating for declines in oncology biosimilars and mature products like Enbrel [4][7][10] - Revenues increased by 9.4% in the first half of 2025 due to rising patient demand for innovative medicines [6] - Rare disease drugs from the acquisition of Horizon Therapeutics are also contributing to revenue growth [7] Pipeline Developments - Amgen is focusing on the obesity candidate MariTide, which is in phase III studies, and has shown promising results in clinical trials [12][14] - Additional indications for existing drugs like Kyprolis and Uplizna are being evaluated, with potential approvals expected to drive further growth [8][10] Biosimilars Performance - New biosimilars launched in 2025, including Wezlana and Pavblu, generated significant sales, contributing to a total of $1.4 billion from biosimilars in the first half of 2025 [18][20] - Amgen's biosimilars have accumulated nearly $12 billion in sales since their first launch in 2018, enhancing top-line growth [20] Competitive Landscape - Sales of key drugs Prolia and Xgeva are expected to decline due to biosimilar competition following patent expirations [22] - Pricing pressures and competitive challenges are impacting sales of some products, particularly Otezla and Lumakras [23] Valuation and Estimates - Amgen's shares are trading at a price/earnings ratio of 13.53, lower than the industry average of 14.85, indicating reasonable valuation [24] - Consensus estimates for earnings per share have increased for 2025 and 2026, reflecting positive sentiment [27][29]