Amgen inc.

    Amgen inc. SWOT & PESTLE

    • Report

    • ID: 529447
    • 15 Pages
    • April 2025
    • Region: North America
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    About Amgen inc.

    Amgen Inc. is an American biopharmaceutical MNC founded in 1980. It was formerly known as Applied Molecular Genetics (1980-1983) till its initial public offering in 1983. Its headquarters are located in Thousand Oaks, California, US. Amgen’s products caters to specific niche medical needs and endeavors to accomplish solutions which improve health and transform people’s lives. This American Biotech pioneer has expanded to become one of the world’s leading independent biotechnology firms, has touched the lives of millions of patients across the world and researching on a string of disruptive medicines with transformative potential. It has its presence in approximately 100 countries with almost 21,000 staff members as of early 2019.

    Amgen’s mission statement reads “To Serve Patients”. Amgen’s USP lies in being one of the world’s largest pharmaceutical companies in terms of revenue and has a market cap of over $120 billion.

    Business Sector

    Pharmaceuticals

    Operating Geography

    United States, North America, Global

    Revenue

    US $23.70 billion – (FY ended 31st Dec 2018) (year-on year decrease of 4%)

    US $22.80 billion – (FY ended 31st Dec 2017) (year-on year decrease of -1%)

    US $22.99 billion – (FY ended 31st Dec 2016)

    SWOT

    SWOT Matrix for Amgen

    Strength

    Weakness
    1. Regularly innovating and developing new products
    2. Biology-first approach
    3. World’s largest independent biotechnology firm
    4. Robust economic earnings
    5. Well positioned oncology/hematology portfolio
    1. Huge Cost incurred for research and development of new products
    2. Battling flat sales growth

    Opportunity

    Threat
    1. Potential long term catalysts – biosimilars
    2. There are still many life threatening diseases with no cure which can be developed
    3. Expansion global commercial reach to developing countries
    1. Sales affected by third party payer like government and US legislation
    2. Protection provided by patents is limited and can be challenged by competitors
    3. Competition from biosimilars and pricing power denting market profitability

    Detailed SWOT Analysis of Amgen

    The detailed SWOT analysis for Amgen inc. is presented below:

    Strength

    1. Regularly innovating and developing new products: The Company focuses on the development of innovative medicines to address important unmet needs in patients with serious illness. These needs, guide the company to relocate the resources across Amgen’s best internal as well as the external programs accessible to them within 6 core therapeutic areas they deal with. Different approach aims to increase the likelihood of success and also reduce the development timeliness and lower cost of developing the newly developed medicines availability to patients. The company has developed and applied for 20 new drugs of which 70% are based on a new mechanism of action making them first class drugs. During the transformation process, the R&D department developed nine approved and launched products of which two are in new therapeutic areas. These are Repatha for cardiovascular diseases and Aimovig for neuroscience launched in 2015 and 2018 respectively. 2018 also saw the launch of Parsabiv, a new treatment for secondary hyperparathyroidism.

    2. Biology–first approach: Amgen has pursued the ideology of “biology-first” approach for discovery of the drugs. So, in a way it strives hard to choose a drug target based on a deep understanding of biology of the disease. After that, it selects the drug modality, or structural template which is the best possible solution for the target. This helps in creating the differentiate Amgen from other competitors in the market.

    Weakness

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    Opportunity

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    Threat

    This section is available only in the 'Complete Report' on purchase

    PESTLE

    PESTLE Matrix for Amgen

    Political

    Economic
    1. Risk of impact due to trade wars and Brexit
    2. Pricing regulation mecha
    3. Favourable tax reform policies in the US
    1. Non-GAAP financial measures

    Social

    Technological
    1. Aging Baby Boomer population in US
    2. Lifestyle changes
    1. Single-use technology
    2. Advancing bio manufacturing process

    Legal

    ENVIRONMENTAL
    1. Legal wars against competitors
    1. Amgen’s 2020 Environmental sustainability Plan

    Detailed PESTLE Analysis of Amgen

    The detailed PESTLE analysis for Amgen inc. is presented below:

    POLITICAL

    1. Risk of impact due to trade wars and Brexit: Recently, tension between the China has increased. And as a result trade war like situation has come up which will definitely affect the working of Amgen. Political instability in UK due to Brexit may lead to fluctuation in sales. US has better opportunity for biotechnology industry but due to war, situation may not be in favour of Amgen as subsidies provided by the government might be affected.

    2. Pricing Regulation Mechanism: As Amgen works for cure of diseases which are severe for human beings, government often regulate the prices of medicines. So, the margin is compromised due to this. The healthcare sector need lots of investment due to research and development of the cures. So, in return if Amgen does not get proper margin then business may suffer decrease in revenues.

    ECONOMIC

    This section is available only in the 'Complete Report' on purchase

    SOCIAL

    This section is available only in the 'Complete Report' on purchase

    TECHNOLOGICAL

    This section is available only in the 'Complete Report' on purchase

    LEGAL

    This section is available only in the 'Complete Report' on purchase

    ENVIRONMENTAL

    1. Amgen’s 2020 Environmental sustainability Plan: Amgen's 2020 Environmental sustainability plan, had been set up since 2008, covers the complete scope of our business, permitting US to realize a far better understanding of our overall environmental impact and integrate property into our merchandise and processes. The Council, which incorporates illustration by leaders from a large cross section of company functions, provides steerage on the implementation of our environmental property set up. Additionally, our government leadership reports our environmental property reach the company Responsibility and Compliance Committee (CRCC) of our Board of administrators. Amgen's environmental property performance toward this set up is ruled through facility- and corporate-level management reviews. One key element of Amgen's corporate-level governance of environmental property is that the property Council.

    Table of Contents

    • Company Overview
      • 1.1 About the Company
      • 1.2 Business Sector
      • 1.3 Operating Geography
      • 1.4 Revenue
    • SWOT Analysis
      • 2.1 SWOT Table/ SWOT Matrix
      • 2.2 Detailed SWOT Analysis
      • 2.3 Strength, Weakness, Opportunity and Threat
    • PESTLE Analysis
      • 3.1 PESTLE Table/ PESTLE Matrix
      • 3.2 Detailed PESTLE Analysis
      • 3.3 Political, Economic, Social, Technological, Legal and Environmental
    • Appendix
      • 4.1 Major Competitors
      • 4.2 Business Sectors / Diversification
      • 4.3 References used to prepare this reports
    • Conclusion
      • 5.1 Closing thoughts
      • 5.2 Methodology used to prepare this report
      • 5.3 Copyrights and Disclaimer

      References and Copyright

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