AMGN

Amgen Inc.

Health Care · Biotechnology
1
/5
Very Low
BOTTOM LINE

Amgen's biologic drugs treat diseases rooted in human biology - AGI cannot cure cancer with software, and AI actually accelerates Amgen's drug discovery capabilities.

BUSINESS OVERVIEW

Amgen is one of the world's largest biotechnology companies, focused on discovering, developing, manufacturing, and commercializing innovative human therapeutics. The company has a broad portfolio of medicines treating serious diseases including oncology, cardiovascular disease, bone health, inflammation, and rare diseases. Amgen is a pioneer in biologics manufacturing and has expanded into biosimilars. The 2023 acquisition of Horizon Therapeutics for $28 billion added rare disease and inflammation drugs to its portfolio.

REVENUE SOURCES
Enbrel (etanercept) - autoimmune/inflammatory diseasesProlia/XGEVA (denosumab) - bone health/oncologyRepatha (evolocumab) - cardiovascular (LDL cholesterol)LUMAKRAS (sotorasib) - oncology (KRAS G12C)BLINCYTO (blinatumomab) - oncology (ALL)Otezla (apremilast) - psoriasis/psoriatic arthritisTEZSPIRE (tezepelumab, with AstraZeneca) - severe asthmaTEPEZZA (teprotumumab, from Horizon) - thyroid eye diseaseKRYSTEXXA (pegloticase, from Horizon) - goutUPLIZNA (inebilizumab, from Horizon) - rare diseaseBiosimilars portfolio (AMJEVITA, MVASI, KANJINTI, others)MariTide (maridebart cafraglutide) - obesity (in development)
PRIMARY CUSTOMERS

Amgen sells its products to wholesale distributors (AmerisourceBergen, McKesson, Cardinal Health account for a large share), hospitals, pharmacies, and healthcare providers. End users are patients with serious chronic and acute diseases. Amgen also partners with other pharmaceutical companies on co-development (e.g., AstraZeneca for TEZSPIRE). Government payers (Medicare, Medicaid) and commercial insurers are key payers.

AGI EXPOSURE ANALYSIS

Amgen develops and manufactures biologic drugs - large, complex protein-based medicines for serious diseases including cancer, cardiovascular disease, bone disorders, and inflammation. AGI cannot replace physical drug molecules. Products like Repatha, Prolia/Xgeva, Enbrel, Lumakras, and MariTide are physical therapeutics that must be manufactured in bioreactors and administered to patients. Amgen's customers are patients with serious diseases, hospitals, healthcare systems, and pharmacies. Sick patients need medicine regardless of AGI. The healthcare system serves biological needs that AI cannot eliminate.

RISK FACTORS
  • AGI-accelerated drug discovery could help competitors develop rival drugs faster
  • AI could enable smaller biotech companies to compete more effectively with Amgen's R&D scale advantage
  • AI-driven drug repurposing could find cheaper alternatives to some Amgen drugs
  • AGI in clinical trials could surface safety signals faster, potentially affecting some products
RESILIENCE FACTORS
  • Physical drug products are immune to digital disruption
  • Massive biologics manufacturing infrastructure (bioreactors) is extremely hard to replicate
  • Patent protection and regulatory exclusivity provide years of competitive protection
  • Decades of protein engineering expertise amplified by AI, not replaced
  • FDA approval process creates 10+ year barriers to entry
  • Diversified across oncology, cardiovascular, bone health, inflammation, obesity, rare diseases
  • Biosimilar business provides additional growth vector
  • AI accelerates Amgen's own drug discovery pipeline
  • MariTide (obesity) addresses massive unmet market need