Amgen Treated Like a Normal Drug Stock

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By Douglas A. McIntyre Published
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Amgen (AMGN-NASDAQ) posted EPS of $0.90, but $0.71 on GAAP EPS.  Revenues were $3.73 Billion versus $3.7 Billion estimates.  Revenues are projected for $15.4 to $16 Billion for 2007 and adjusted EPS put for 2007 at $4.30 to $4.50.  Estimates for the quarter were $0.94 to $0.95 depending on your consensus, but 2007 estimates are $4.43.

The stock closed down 0.4% at $74.85 and is down almost 2% around $73.50 in the initial reaction.  At the mid-point this is only a 17 P/E for 2007, so investors aren’t willing to pay up for Amgen’s earnings based on Congressional scares and potential patent issues in 2008 and beyond.  The valuation isn’t the issue here, because this ons has been cheaper than many Big Pharma stocks for a while.   Its market cap is $87 Billion.

Amgen is no longer treated like a biotech, it’s treated like a plain Jane drug stock.  That might not be fair, but the market sets the rules.

Jon C. Ogg
January 25, 2007

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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