4 Reasons to Buy Amgen Stock Right Now

Core Viewpoint - Amgen's stock presents an attractive long-term investment opportunity despite recent share price declines and upcoming patent cliffs [1][2]. Group 1: Promising Drug Developments - Amgen is developing MariTide, a weight management drug that has shown a mean weight loss of up to 20% over 52 weeks, with a favorable monthly dosing schedule [4][5]. - The anti-obesity market is rapidly growing, and MariTide could generate sales of up to $3.7 billion by 2030, helping Amgen offset losses from patent expirations [6]. - Amgen has a robust pipeline with several ongoing programs, including bemarituzumab, which has shown promising results in a phase 3 study for metastatic gastric cancer [7][8]. Group 2: Recent Product Launches - Amgen's recent product approvals, such as Imdelltra for lung cancer, Tezspire for asthma, and Uplizna for rare diseases, are expected to contribute to top-line growth [9][10]. Group 3: Financial Strength and Dividends - Amgen has a strong dividend track record, having increased its dividend by 201.3% over the past decade, with a current yield of 3.5% [11][12]. - The company's cash payout ratio of 46.5% provides room for further dividend increases, making it an attractive option for investors seeking income [12][13]. Group 4: Valuation - Amgen's shares are considered reasonably valued, with a forward price-to-earnings ratio of 12.6, lower than the healthcare industry average of 16.4 [14][15]. - The market may be pricing in upcoming patent losses, but long-term investors could benefit from potential revenue and earnings growth as new products are launched [15].