A:

Biotech giant Amgen Inc (AMGN) bills itself as one of the first biotechnology firms. It was founded in 1980 and has grown into a firm with 20,000 employees, a market capitalization of nearly $100 billion, and approximately $20 billion in annual sales. Below is an overview of its main rivals.

Product Rivals

Any pharmaceutical or biotech firm is technically a rival to Amgen, though there is a smaller subset of rivals that sell similar drugs to Amgen. For instance, Johnson & Johnson (JNJ) sells Procrit, which is a competitor to Aranesp and Amgen’s stable of anemia treatments. Teva Pharmaceutical (TEVA) also sells an increasing array of biosimilar drugs to Aranesp Amgen’s Enbrel helps treat arthritis, which competes with AbbVie’s (ABBV) popular Humira drug. Celgene (CELG) sells Revlimid to treat myeloma and Amgen is in the process of getting into the field with the acquisition of Onyx and its Kyprolis drug, also for the treatment of myeloma.

Biotech Competition

In general, Amgen competes with other large biotech firms. Biogen Idec (BIIB) sells a number of drugs to help treat multiple sclerosis and is seeing success with the launch of a couple of drugs to treat hemophilia. Celgene sells drugs that help treat cancer and immune-inflammatory diseases. Gilead Sciences (GILD) offers a number of drugs that help patients suffering from HIV and recently released Solvadi, which has had great success in helping patients with hepatitis C infections.

The Bottom Line

A number of firms continue to muscle into Amgen’s core businesses of treating anemia, arthritis, and myeloma. Generic versions will also continue to be introduced as Amgen’s drug patents expire over time. Most investment bankers and analysts, however, still project Amgen will remain profitable over time.

At the time of writing, Ryan C. Fuhrmann is long shares of Amgen and Gilead but did not own shares in any of the other companies mentioned in this article.

RELATED FAQS
  1. What factors make the drug sector good for value investing?

    The drugs sector is a good choice for value investing because it always has demand and a competitive moat. This simplifies ... Read Full Answer >>
  2. What annual return could an investor expect on average from the drug sector?

    The drugs sector consists of a diverse group of companies of different sizes in terms of market cap, revenues, profitability ... Read Full Answer >>
  3. What are the primary factors that drive share prices in the drugs sector?

    The primary factors that drive share prices in the drugs sector are mergers and acquisitions activity, spending on health ... Read Full Answer >>
  4. How does the profit margin compare for a generic drug versus a brand name drug?

    Profit margins are higher for generic drugs compared to brand-name drugs. However, total profits on brand-name drugs are ... Read Full Answer >>
  5. What level of return on equity is average for a company in the drugs sector?

    The drugs sector provides a variety of investing opportunities ranging from major drug manufacturing companies to generic ... Read Full Answer >>
  6. What is the average price-to-book ratio for companies in the drugs sector?

    Companies in the drug manufacturers - major industry sector are included under the health-care sector. Investors could use ... Read Full Answer >>
Related Articles
  1. Stock Analysis

    How Gilead Sciences Became A Big Name In Biotech

    How does a company start with an unfortunate bout of dengue fever and grow to be a multibillion dollar corporation?
  2. Mutual Funds & ETFs

    Buyout Cycle Boosts Biotech ETFs

    The 230% single day gain that IDIX experienced as a result of the buyout had a huge impact on the SPDR Biotechnology ETF (XBI), which rose more than 6% that day
  3. Stock Analysis

    What Are The Best Bets In Biotech?

    The NASDAQ Biotechnology Index is off nearly 20% as its components busy themselves with hostile bids and frenzied buying and selling of business units. Where should you be when the smoke clears? ...
  4. Investing

    Pharmaceutical Vs. Biotech Investing: Is It Worth The Risk?

    Investopedia explains: Both pharma and biotech stocks are faced with a costly process that, when successful, can produce extremely profitable products. However, the process is unpredictable.
  5. Markets

    A Primer On The Biotech Sector

    Investing in the biotech sector can involve both huge losses and major gains.
  6. Active Trading

    The Ups And Downs Of Biotechnology

    This volatile sector can provide huges gains, but there's also lots of downside.
  7. Mutual Funds & ETFs

    ETF Analysis: ProShares Ultra Nasdaq Biotechnology

    Find out information about the ProShares Ultra Nasdaq Biotechnology exchange-traded fund, and learn detailed analysis of its characteristics and suitability.
  8. Insurance

    Top 6 Car Insurance Companies in New York

    Read about the top private auto insurers licensed to operate in New York, and learn about recent trends in market share among these companies.
  9. Mutual Funds & ETFs

    ETF Analysis: Direxion Daily S&P Biotech Bull 3X

    Learn more about the Direxion Daily S&P Biotech Bull 3x exchange-traded fund, a new triple-leveraged ETF tracking biotechnology equities.
  10. Mutual Funds & ETFs

    ETF Analysis: First Trust Health Care AlphaDEX

    Learn more about the First Trust Health Care AlphaDEX exchange-traded fund, an indexed fund that uses an advanced stock selection methodology.
RELATED TERMS
  1. Fractal Markets Hypothesis (FMH)

    An alternative investment theory to Efficient Market Hypothesis ...
  2. Phenotype

    An organism’s observable characteristics or traits.
  3. Pharmacology

    The study of how drugs affect people. More formally, pharmacology ...
  4. Molecular Biology

    The study of biology and biological processes at the fundamental ...
  5. Genomics

    The study of the genome, which is the complete set of the genetic ...
  6. Genetic Engineering

    The artificial modification of an organism’s genetic composition. ...

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!