Amgen

Methodology

Amgen's mature biotech portfolio provides stable earnings though patent expirations and biosimilar competition create headwinds. The mix of established franchises and newer products attempting to offset losses creates moderate predictability. This works reasonably as mature large-cap biotech, though investors must assess pipeline success and biosimilar impact timing for accuracy.

Methodology

Amgen's PEG often appears attractive compared to growth biotechs but reflects mature products facing biosimilar erosion. Limited organic growth and dependence on acquisitions or pipeline breakthroughs justify lower multiples than innovative biotechs. Low PEG may signal value if confident in pipeline, or appropriately reflect challenges of replacing mature blockbuster revenue.

Methodology

Amgen's substantial dividend makes yield-adjusted metrics particularly important for valuing this mature biotech as total return proposition. Strong cash generation from established products supports dividends and significant buybacks despite biosimilar pressures. PEGY better captures appeal as defensive healthcare holding with income characteristics where capital returns matter as much as modest new product growth.