Assessing Amgen (AMGN)’s Valuation After FDA Approval of Uplizna for Generalized Myasthenia Gravis
Amgen (AMGN) just picked up a meaningful FDA win, with Uplizna cleared as the first CD19 targeted B cell therapy for certain adults with generalized myasthenia gravis, and markets are reassessing the stock’s long term growth mix.
See our latest analysis for Amgen.
The Uplizna approval lands just after Amgen confirmed another quarterly dividend increase. It comes at a time when the share price, now around $317.74, has delivered a robust year to date share price return of roughly 22% and a one year total shareholder return above 21%, suggesting sentiment is improving even after some recent pullback.
If this kind of steady, clinically driven rerating appeals to you, it could be worth exploring other established names in healthcare stocks that are quietly reshaping their growth stories too.
With earnings still growing faster than revenue and shares trading only a touch below Wall Street targets, is Amgen quietly undervalued on its expanding rare disease portfolio, or is the market already discounting years of future growth?
Most Popular Narrative Narrative: 1.6% Undervalued
With Amgen closing at $317.74 against a narrative fair value of $322.88, the story hinges on modest upside built on durable cash flows.
In order for you to agree with the analyst's consensus, you would need to believe that by 2028, revenues will be $37.4 billion, earnings will be $8.2 billion, and it would be trading on a PE ratio of 25.3x, assuming you use a discount rate of 7.3%.
Want to see what justifies that richer future earnings multiple? The narrative focuses on steady revenue increases, margin improvement and an earnings pattern more often associated with faster growth stories.
Result: Fair Value of $322.88 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, that hinges on Amgen outpacing biosimilar pressure and navigating intensifying drug price reform, both of which could quickly cap multiple expansion.
Find out about the key risks to this Amgen narrative.
Build Your Own Amgen Narrative
If you see the future playing out differently, or simply want to dig into the numbers yourself, you can build a personalized view in just a few minutes: Do it your way.
A great starting point for your Amgen research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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