Amgen Stock Plummets 4.99% Amid Profitability Concerns Despite FDA Approval
1min read Amgen Inc. (AMGN) has caught the attention of investors recently with significant fluctuations in its stock performance. Notably, on April 4, the company's stock price fell by 4.99%, hitting a new low since 2025. This volatility raises the question of what underlying factors are causing such dramatic price movements for the biotech giant.
On April 3, 2025, Amgen announced the approval of its drug Uplizna (Inebilizumab) by the U.S. Food and Drug Administration (FDA) for treating IgG4-related disease (IgG4-RD). This development is a positive one, considering IgG4-RD is a chronic, debilitating immunologically mediated inflammatory disease with a high unmet clinical need. The drug promises to substantially improve patient quality of life. However, financial records indicate that while Amgen's 2024 revenue grew to $33.42 billion, marking an 18.57% increase, its net income for shareholders decreased significantly by 39.11%, to just $4.09 billion. Such a decline in profitability may cause investors to question its future performance.
Amgen has long been committed to innovation in the biotech sector, aiming to address unmet medical needs through new pharmaceuticals. Despite focusing on innovation, the company is challenged by profitability pressures. These stem from substantial R&D expenses and fierce competition within the biotech industry. In light of these challenges, investors may approach Amgen's long-term strategy with caution.
Additionally, Amgen is set to release its first-quarter financial results on May 1, 2025. This upcoming report is eagerly anticipated, as it will provide further insights into the effectiveness of the company's new drug development and market expansion efforts, as well as its strategies in coping with industry competition. For investors, this pivotal disclosure could aid in assessing the company's future trajectory.
Investors considering Amgen should focus on several aspects: firstly, the company’s competitive strength in a dynamic industry environment and its new drug's market acceptance. Secondly, they should closely monitor the forthcoming financial report data, which will shed more light on Amgen's potential for profitability in the future. Lastly, given the nature of the biotechnology sector, investors must remain vigilant about market volatility and be prepared to adjust their portfolios as necessary to mitigate risk.
