Analyst Stefan Quenneville of Morningstar says Amgen, Inc. (AMGN) is a large-cap biotech name that investors are viewing as lagging in terms of innovation. However, he views Amgen as an operational turnaround story.
“There were quite a few pipeline failures over the years, and a lot of their main products are starting to be vulnerable to biosimilar competition. So people are looking at it negatively, but recently they have announced some cost-cutting measures and have also made some big investments in their manufacturing processes that are really going to bring down some of their costs and improve their overall margins,” Quenneville said.
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
Quenneville also says the market may not be appreciating Amgen’s emerging pipeline.
“We think it’s an operational turnaround story — there is lot of operating leverage in their model — and we also think that their pipeline is going to start producing some hits over the next few years, so it’s a bit of an operational turnaround, emerging pipeline story that is underappreciated. That’s another name that we think has some value in this market,” Quenneville said.
Amgen, Inc. (NASDAQ:AMGN) Has Projected Earnings Growth for 2016
February 19, 2016
J. Jeffrey Auxier, President of Auxier Asset Management, Sees Amgen (NASDAQ:AMGN) and Biogen (NASDAQ:BIIB) as 2018 Stocks to Buy
December 28, 2017
KRAS Inhibitor Development by Mirati (NASDAQ:MRTX) and Amgen (NASDAQ:AMGN) Create Buying Opportunity for Investors
March 25, 2019
Cameron International Corporation (CAM) Remains Underappreciated and Will Recapture Subsea Oil Drilling Market Share
March 07, 2013
Microsoft Corporation’s (MSFT) Enterprise Business Underappreciated
December 03, 2014
