Amgen Inc. (NASDAQ:AMGN) began life in 1980 in a small suite of offices in Thousand Oaks, California, under the name Applied Molecular Genetics, at a time when recombinant-DNA science was still in its infancy and Silicon Valley venture capital was just discovering biotech. From the outset, the company’s founders pursued a hybrid strategy of deep academic collaboration and aggressive in-house process engineering that paid off quickly with the launch of the first commercially successful recombinant human proteins for anemia and neutropenia. Those early blockbusters—Epogen and Neupogen—not only saved countless lives but also generated the cash that allowed Amgen to keep its R&D engine running through the 1990s tech bust and into the modern biologics era.
A decisive turning point came in 2002 with the $16 billion acquisition of Immunex, which brought the anti-TNF biologic Enbrel into Amgen’s portfolio and instantly vaulted the company into the front rank of global immunology franchises. The deal also accelerated Amgen’s manufacturing prowess, leading to one of the world’s largest vertically integrated biologics supply chains and setting the template for future growth by acquisition. Over the next two decades the company layered on more therapeutic pillars—oncology, bone health, cardiovascular disease, and hematology—while expanding its geographic footprint to more than 100 countries and establishing research hubs in Cambridge, South San Francisco, and Munich.
Amgen never lost its appetite for scale-shifting transactions. In late 2023 it closed the $27.8 billion takeover of Horizon Therapeutics, instantly adding Tepezza and Krystexxa to an already diverse basket of high-margin rare-disease assets and reinforcing the company’s reputation for disciplined, accretive deal-making. Meanwhile, internal discovery kept humming: the in-house biologics and small-molecule platforms delivered Repatha for hyperlipidemia, Evenity for osteoporosis, and Lumakras for KRAS-mutant lung cancer, proving that Amgen could still innovate at Big Pharma scale. At the same time, the company built one of the industry’s largest biosimilar businesses, hedging patent-expiry risk while leveraging its manufacturing edge.
Today Amgen pairs a mature cash-generating portfolio with a pipeline positioned for breakout growth. Weight-loss candidate MariTide, now in late-stage development, has shown double-digit percentage body-weight reductions with more convenient quarterly dosing, offering a potential multibillion-dollar foothold in the booming obesity market. On the oncology front, first-in-class FGFR2b antibody bemarituzumab just met its Phase 3 primary endpoint in gastric cancer, clearing a path toward regulatory filings and opening a sizeable precision-medicine opportunity in a tumor type that desperately needs new options. These pipeline wins ride on top of a balance sheet that routinely throws off more than $10 billion in annual free cash flow and underwrites a dividend yield north of three percent—rare financial firepower in biotech.
Four and a half decades after its founding, Amgen is no longer merely one of the original biotech pioneers; it is a fully diversified biopharmaceutical powerhouse combining blue-chip cash flows with venture-style upside. Its track record of operational excellence, shrewd capital allocation, and relentless scientific advancement positions the company to keep compounding value for patients and shareholders alike as it enters its next phase of growth.
Powerful Q1 2025 Earnings Set the Stage for Further Momentum
Amgen started the year strong, reporting first-quarter 2025 financial results that exceeded Wall Street’s expectations across all major metrics. Total revenue grew 9% year-over-year to $8.1 billion, reflecting strength across 14 different products with double-digit growth. The company delivered adjusted earnings per share of $4.90, beating consensus forecasts of $4.29 and showcasing its efficient operating leverage. Even more notably, Amgen generated over $1 billion in free cash flow for the quarter, further reinforcing its position as a cash-rich, high-margin business with ample capital for R&D, shareholder returns, and acquisitions.
Flagship drugs like Repatha and Evenity led the charge, with sales increasing 27% and 29% respectively, highlighting continued uptake in cardiovascular and bone health markets. Amgen’s biosimilar segment also posted a solid 35% revenue gain, underscoring the company’s ability to compete effectively in both branded and competitive biologic markets. While mature products like Enbrel have seen some erosion, particularly from pricing pressures, newer assets and pipeline catalysts have more than offset the decline.
CHECK THIS OUT: Exact Sciences (EXAS) Just Made Cancer Detection 100x Easier! and Soleno Therapeutics (SLNO): The Biotech Company That Could Make You Rich.
Bemarituzumab Phase 3 Success Reinforces Amgen’s Precision Oncology Credentials
A major catalyst for Amgen’s bullish outlook emerged on June 30, 2025, when the company announced positive topline results for its Phase 3 FORTITUDE-101 study of Bemarituzumab. The investigational therapy met its primary endpoint, demonstrating a statistically significant and clinically meaningful improvement in overall survival when combined with chemotherapy in patients with unresectable locally advanced or metastatic gastric or gastroesophageal junction cancer that overexpresses FGFR2b and is HER2-negative.
This achievement is a landmark development not only for Amgen but for the field of gastric cancer therapeutics as a whole. Gastric cancer remains the fifth leading cause of cancer-related deaths globally, with nearly one million new cases and over 650,000 deaths each year. Bemarituzumab, a first-in-class Fc-optimized monoclonal antibody targeting FGFR2b, offers a novel and much-needed therapeutic approach for a patient population with limited treatment options.
With detailed results expected at future medical conferences and another ongoing Phase 3 trial of Bemarituzumab in combination with chemotherapy and nivolumab slated to report results in late 2025, the program could be a multi-billion-dollar commercial opportunity. Investors should also note that this pipeline success further enhances Amgen’s reputation in the precision oncology space, supporting its strategic expansion beyond traditional inflammatory diseases and into tumor-specific biologics.
MariTide Could Be a Game-Changer in the $100 Billion+ Obesity Market
While Bemarituzumab represents a near-term revenue driver, Amgen’s pipeline also includes high-profile long-term assets such as MariTide, its experimental obesity drug. In a market currently dominated by Eli Lilly’s Zepbound and Novo Nordisk’s Wegovy, MariTide has shown competitive weight loss efficacy (~20%) and a compelling quarterly dosing profile that could drive significant patient preference and market share.
Analysts believe that MariTide could achieve peak annual sales exceeding $10 billion if it succeeds in upcoming late-stage trials. With Phase 3 data expected in 2027, Amgen’s obesity franchise could meaningfully reshape its revenue mix and inject long-term growth into a company already known for commercial success. The obesity market itself is projected to exceed $100 billion globally by 2030, and Amgen is one of the few Big Pharma players with a pipeline candidate that could disrupt the status quo.
Horizon Therapeutics Acquisition Strengthens Rare Disease Portfolio
In addition to internal R&D, Amgen has aggressively deployed capital to acquire promising assets. One of the most significant recent deals was its $27.8 billion acquisition of Horizon Therapeutics, completed in December 2023. The acquisition brought a range of rare disease assets into Amgen’s portfolio, including Tepezza for thyroid eye disease and Krystexxa for chronic refractory gout. These high-margin, high-growth assets are already contributing meaningfully to revenue and help diversify Amgen’s risk profile by reducing reliance on older franchises like Enbrel.
The Horizon deal also reinforces Amgen’s ability to identify strategic bolt-on acquisitions that immediately enhance its top-line while expanding into adjacent therapeutic markets. This acquisition is a strong endorsement of management’s capital allocation acumen and long-term vision.
Solid Financial Base Supports Growth and Shareholder Returns
Amgen’s balance sheet remains a strength, with manageable debt, over $12 billion in annual free cash flow, and a forward P/E ratio near 14—well below the sector average for a company with its level of commercial success and pipeline optionality. The company has consistently returned capital to shareholders through a growing dividend and opportunistic share repurchases. With a yield above 3% and decades of dividend growth, Amgen offers not only capital appreciation potential but also steady income for long-term investors.
Wall Street has taken notice. Recent price targets from analysts range from $308 to $383 per share, implying double-digit upside from current levels near $298. Sentiment has shifted bullish, with several firms naming Amgen among the top “buy-the-dip” stocks for 2025, thanks to its defensive fundamentals and breakout potential in obesity and oncology.
Conclusion: A Rare Blend of Stability, Innovation, and Undervaluation
Amgen Inc. is entering a transformative phase in its nearly 45-year history. With a commercially successful portfolio, a proven management team, and a clinical pipeline brimming with high-impact opportunities—particularly Bemarituzumab and MariTide—the company stands out as one of the most attractive large-cap biotech investments in the market today. Its strong financial performance, attractive valuation, and diversification into fast-growing therapeutic areas offer both near-term resilience and long-term growth. For investors seeking a large-cap biotech with real catalysts, a proven business model, and significant upside, Amgen deserves a top spot on the watchlist in 2025 and beyond.
READ ALSO: Johnson & Johnson (JNJ) can be the Next Trillion-Dollar Stock and Boston Scientific (BSX) Just Signed a $45M Deal—Here’s What It Means for Investors.
