Amgen Goes Very Dull… Dealtime Needed (AMGN)

April 23, 2009 · Filed Under General 

We posted the full earnings analysis of Amgen Inc. (NASDAQ: AMGN), but one thing is becoming very clear at the biotech giant.  This is a really just a troubled drug company that masquerades as a biotech stock.  We have not said this for some time, but it is becoming even more true than when this was a common chant.  It is not growing its top-line, and the company just projected a decrease in 2009 revenues.  See full details at 24/7 Wall Street.

Before you accuse me of being too hard on them, there is some good news.  It has right at $10 billion in cash and it now trades with a forward P/E ratio of right about 10-times earnings.  Drug companies can trade with no growth right now, but investors want to see more from biotech companies.  We can’t be more firm on this notion: AMGEN NEEDS TO MAKE A GAME-CHANGING ACQUISITION.

That deal from almost two-years ago was too much of the same.  It is time to diversify.  It is time for a ‘wow’ factor.

Sometimes saying less is better than saying more.  That’s it.

JON C. OGG

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