Amgen (AMGN): Someone Else's Setback and Our Own Math

Amgen is one of the companies that helped found the biotechnology industry and is a component of the Dow Jones Index: it produces drugs for the heart, bones, rare diseases, and cancer, and has a drug in development that could enter the obesity treatment market. This year, the market rediscovered this story. But in September, another company’s clinical setback revealed just how much of the valuation is based not on sales but on expectations. We’ll break down what’s already priced in, how patents and regulations are transforming the company’s traditional core business, and which levels on the daily chart are currently important.