Amgen Inc. has acquired U.K.-based Dark Blue Therapeutics for approximately $840 million, a strategic move aimed at bolstering its oncology pipeline amid looming patent expirations and heightened competition. This acquisition introduces a targeted small-molecule degrader for acute myeloid leukemia, enhancing Amgen's capabilities in treating challenging cancers. Following the announcement, Amgen's stock surged over 3%, aided by a price target upgrade from UBS to $380, reflecting increased investor confidence in the company's growth prospects.
“Our Discounted Cash Flow (DCF) analysis suggests Amgen is undervalued by 49.4%.”
“Amgen currently trades on a P/E of 25.07x. That sits above the Biotechs industry average P/E of 21.41x.”
“Comparing the Fair Ratio of 27.26x with the current P/E of 25.07x indicates that Amgen is trading at a level that the model treats as undervalued on this metric.”
“For Amgen however we will make it really easy for you with previews of two leading Amgen Narratives: Bull Case Fair value in this bullish narrative: US$327.74 per share...”
“Bear Case Fair value in this bearish narrative: US$218.89 per share...”
“The bearish view focuses on reliance on aging therapies, upcoming patent expiries and biosimilar competition, which could put pressure on both revenue and margins over time. Drug pricing reforms, value based care, potential government price controls and higher R&D and acquisition related costs are described as headwinds for earnings and free cash flow.”
“The deal gives Amgen access to a differentiated surfaceome-targeting engine that can inform bispecific antibody-drug conjugates and T-cell engagers, potentially broadening its oncology toolkit against hard-to-treat tumors like small cell lung cancer and microsatellite-stable colorectal cancer.”
“Amgen's narrative projects $37.4 billion revenue and $8.2 billion earnings by 2028.”
“Biotech Amgen (AMGN, 2.9% yield) did just about everything it could to get out of the doghouse in 2025, gaining 30% across the year.”
“That said, one potential catalyst is an early-stage drug in a pretty crowded space: obesity. Any positive developments from its MariTide monthly injectable for obesity could further propel shares.”
“On that day, Amgen is projected to report earnings of $4.74 per share, which would represent a year-over-year decline of 10.73%.”
“Simultaneously, our latest consensus estimate expects the revenue to be $9.47 billion, showing a 4.2% escalation compared to the year-ago quarter.”
