Why Amgen Stock Dropped 10.4% in January
Shares of Amgen (NASDAQ: AMGN) fell 10.4% in January, according to data provided by S&P Global Market Intelligence, after the stock rose 24% last year and reached an all-time high in December.
This isn't simply a case of locking in profits. Investors may be concerned about a slowdown at the biotech giant as older drugs lose patent protection. In the third-quarter presentation in October, Amgen reported declines in sales of bone marrow stimulants Neulasta and Neupogen, citing biosimilar competition. Both drugs help the body make white blood cells after cancer treatments.
Biosimilars are highly similar to an already approved biological treatment. Sales of Neulasta fell 32% in the quarter to $711 million, while Neupogen declined 36% to $54 million. Just a year earlier, quarterly revenue of Neulasta topped $1 billion.
Source Fool.com
