Amgen Inc. is slashing prices of its cholesterol fighting drug Repatha, amidst rising healthcare costs and increased regulatory surveillance to protect patients from exorbitant medicine prices.
The biopharmaceutical company will reduce the U.S. list price of Repatha by -60% - from more than $14,000 a year to $5,850. Repatha is one of the injectable medications that aim to mitigate high cholesterol problems and lower chances of heart attack and stroke. Higher prices have reportedly been hurting demand for such drugs, thereby potentially posing concerns about people’s health. In Q2, revenue from Repatha was $148 million – which beat estimates, was still much lower compared to analysts' previously high expectations about its success. Amgen’s price cut decision also comes amidst U.S. President Donald Trump’s administration’s initiatives to increase transparency on drugs’ pricing and to ease financial constraints faced by U.S. patients.
Talking about its drug price reduction, Murdo Gordon, Amgen’s new executive vice president of global commercial operations said, “The impact we’re trying to have is on high-risk patients, and about 65 percent of those are on a Medicare plan” .
AMGN moved above its 50-day moving average on May 01, 2024 date and that indicates a change from a downward trend to an upward trend. In of 45 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 26, 2024. You may want to consider a long position or call options on AMGN as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for AMGN just turned positive on April 22, 2024. Looking at past instances where AMGN's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMGN advanced for three days, in of 296 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMGN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AMGN broke above its upper Bollinger Band on March 27, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for AMGN entered a downward trend on April 30, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: AMGN's P/B Ratio (24.331) is slightly higher than the industry average of (5.632). P/E Ratio (22.661) is within average values for comparable stocks, (48.974). Projected Growth (PEG Ratio) (2.526) is also within normal values, averaging (3.004). Dividend Yield (0.031) settles around the average of (0.164) among similar stocks. P/S Ratio (5.402) is also within normal values, averaging (3.643).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMGN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of human therapeutic products based on cellular biology
Industry PharmaceuticalsMajor