Market Overview

Amgen Downgraded After Top Products See Sales Slip In Q3

Amgen Downgraded After Top Products See Sales Slip In Q3

Argus downgraded shares of Amgen, Inc. (NASDAQ: AMGN), citing concerns about the secular slowdown in the sales of the company's top three products — namely Enbrel, Neulasta and Aranesp — which together accounted for 55 percent of the total revenues.

As such, the firm downgraded shares of Amgen from Buy to Hold.

Analyst David Toungsees the declines as secular, rather than cyclical, given that these drugs have lost patent protection and face competition from biosimilars. On the other hand, the analyst noted that company's most promising new drugs account for just 14 percent of revenues, which he feels is inadequate to offset the declines of the top three brands.

See also: Attention Biotech Investors: Here Are November PDUFA Catalysts On The Horizon

Argus indicated that the bottom line beat Amgen managed to record in the third quarter came from cost cuts rather than higher sales. On that note, the management said it would manage expenses carefully in 2018, which is a pointer that growth in R&D and marketing activities will trail the revenue growth, the firm added.


"We would consider a more constructive stance on AMGN on signs of stronger contributions from the company's new drug pipeline or from its biosimilars portfolio," the firm said.

"We note, however, that Amgen may not generate commercial revenue from biosimilars until 2019 due to regulatory and legal hurdles."

Latest Ratings for AMGN

Oct 2019ReinstatesNeutral
Sep 2019ReiteratesNeutral
Aug 2019MaintainsNeutral

View More Analyst Ratings for AMGN
View the Latest Analyst Ratings

Posted-In: Argus David ToungAnalyst Color Biotech Downgrades Analyst Ratings General Best of Benzinga


Related Articles (AMGN)

View Comments and Join the Discussion!

Latest Ratings

WDAYSociete GeneraleUpgrades
BKUDA DavidsonInitiates Coverage On39.0
JDVertical GroupInitiates Coverage On
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

The Case Of PetroChina, The Worst Stock Slump Ever

11 Technical Levels Discussed On Wednesday's PreMarket Prep