What Happened?
Shares of biotech company Amgen (NASDAQ:AMGN) jumped 6.4% in the afternoon session after the company announced a $650 million investment to expand its US manufacturing network. The investment is aimed at increasing drug production at its biologics facility in Juncos and is expected to create nearly 750 new jobs, including highly skilled manufacturing roles. According to CEO Robert A. Bradway, the expansion highlights Amgen's commitment to US biomanufacturing and strengthening its global supply chain. In other news, the company reached a settlement with Biocon Biologics. The agreement resolves pending patent litigation and allows Biocon to launch biosimilar versions of Amgen's drug, denosumab, in the U.S. starting October 1, 2025.
The shares closed the day at $298.50, up 5.8% from previous close.
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What Is The Market Telling Us
Amgen’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 3.8% on the news that reports revealed a potential drug-pricing agreement between the White House and the pharmaceutical industry. The Trump administration is advancing its “Most Favored Nation” initiative, which aims to lower prescription drug costs for Americans. This policy would tie the prices of medications in the U.S. to the lowest costs paid by other wealthy nations. As part of this push, Pfizer has reportedly entered into an agreement to voluntarily sell its medications through Medicaid at these reduced prices. The move comes as the administration intensifies pressure on drugmakers to make prices more affordable. While pricing controls can often be a headwind, the market's positive reaction suggests that investors may see this voluntary agreement as a way to resolve regulatory uncertainty, providing a clearer path forward for the industry.
Amgen is up 15.1% since the beginning of the year, but at $298.50 per share, it is still trading 9.1% below its 52-week high of $328.35 from October 2024. Investors who bought $1,000 worth of Amgen’s shares 5 years ago would now be looking at an investment worth $1,169.
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