Amgen's Goldman Sachs Presentation: A Pivotal Moment for Biotech Leadership

Amgen (NASDAQ: AMGN) stands at a critical crossroads as it prepares to present at the Goldman Sachs 46th Annual Global Healthcare Conference on June 10, 2025. The event, featuring CFO Peter Griffith and R&D Head James Bradner, offers investors a deep dive into the company's pipeline advancements, financial discipline, and strategic positioning in oncology and cardiovascular markets. With a robust pipeline and a track record of innovation, Amgen's webcast could catalyze a valuation re-rating for its stock, currently trading at an undemanding 13.9x forward P/E.

Pipeline Progress: A Catalyst for Growth

Bradner's updates highlight Amgen's strength in oncology and cardiovascular therapies, two markets with significant unmet needs.

Oncology:
- IMDELLTRA®: The FDA-approved DLL3-targeted therapy for small cell lung cancer (SCLC) has shown a 40% reduction in mortality risk compared to chemotherapy. With Japan's launch in April 2025 and trials in earlier SCLC lines underway, IMDELLTRA could redefine standards of care.
- Zaluritamab: A novel T-cell engager for advanced prostate cancer, expanding the platform's reach.
- Bema rituximab: Phase III data in gastric cancer expected in 2025, offering a new option for hard-to-treat cancers.

Cardiovascular:
- Repatha®: Q1 revenue rose 27% to $656M, driven by strong adoption in high cholesterol management. The VESALIUS-CV trial, expected to report in H2 2025, could validate its use in primary prevention, broadening its addressable market.
- Olpasiran (AMG 890): A first-in-class siRNA targeting lipoprotein(a) (Lp(a)), which reduces cardiovascular risk. With a 95% reduction in Lp(a) levels and quarterly dosing, Olpasiran could outperform competitors like Novartis' inclisiran. Phase III outcomes data in 2026 will be pivotal.

Emerging Therapies:
- Meritide: A GLP-1/GIP dual agonist for chronic weight management, showing promise in Phase II trials with reduced LDL-C and blood pressure. With a potential launch in 2026, Meritide could capitalize on the growing obesity and cardiometabolic market.

Financial Strategy: Balancing Growth and Discipline

Griffith's presentation will likely emphasize Amgen's operational efficiency and capital allocation priorities:

1. Strong Q1 2025 Results:
2. Revenue rose 9% YoY to $8.15B, with biosimilars contributing $735M (up 35% YoY).

3. Non-GAAP EPS increased 14% to $4.90, exceeding estimates.

4. Margin and Dividend Focus:

5. Operating margin target: ~46% for 2025, achievable through cost discipline and R&D efficiency.

6. Dividend yield: 3.38%, one of the highest in biotech, signaling financial strength.

7. Capital Allocation:

8. R&D investments: Shifted to Q2 for Phase III trials (e.g., Meritide, Olpasiran). Griffith expects low-teens OpEx growth, prioritizing high-impact programs.
9. Manufacturing: $1.9B invested in U.S. facilities to support Meritide and biosimilar growth.

Market Positioning: Navigating Competition and Policy

Amgen faces headwinds from biosimilar competition (e.g., denosumab generics) and global pricing pressures. However, its diversified portfolio and first-in-class assets provide resilience:

• Biosimilars: While biosimilars like Sandoz's Prolia generic pose risks, Amgen's deep commercial expertise and focus on high-growth therapies (e.g., Repatha, Meritide) mitigate downside.
• Policy Advocacy: Griffith's engagement with policymakers aims to balance innovation incentives with access, crucial in markets like the U.S. and EU.

Webcast Implications: A Stock Catalyst

Investors should watch the June 10 webcast closely for three reasons:

1. Pipeline Clarity: Bradner's updates on Repatha's VESALIUS-CV data timeline and Olpasiran's trial enrollment status could reduce execution risk.
2. Financial Guidance: Griffith may reaffirm 2025 targets or provide 2026 outlooks, boosting confidence in Amgen's ability to grow through biosimilar headwinds.
3. Valuation Re-Rating: With a forward P/E of 13.9x and EV/EBITDA of 12.76x—below peers like BMY and JNJ—Amgen's stock is undervalued relative to its pipeline potential. Positive updates could push the stock toward $350 (20% upside).

Investment Takeaway

Amgen's presentation is a must-watch event for biotech investors. With a strong oncology/cardiovascular pipeline, robust financials, and disciplined capital allocation, the company is well-positioned to deliver long-term growth. Investors seeking exposure to innovation in chronic and oncologic therapies should consider accumulating shares ahead of the webcast. A buy rating is warranted, especially if the presentation clarifies catalyst timelines and reinforces Amgen's leadership in high-value markets.

Stay tuned to the live webcast at 9:20 a.m. PT on June 10 (archived at
amgen.com), and prepare for a potential market-moving update.