COMPANY PROFILE -Amgen
Business Sector :Pharmaceutical
Operating Geography :United States, North America, Global
About Amgen :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. Amgen has acquired more than 16 companies since its existence. Its headquarters are located in Thousand Oaks, California, US. As per recent data, it has at least 12 approved drugs or therapeutic of biologicals for 17 conditions. It has its presence in approximately 100 countries with almost 19,200 employees as of Dec 2016.
Amgen Revenue :22.99 Billion US $ – FY Dec 2016
Competitive Analysis of Amgen
|1. Regularly innovating and developing new products |
2. Biology-first approach
3. World’s largest independent biotechnology firm
|1. Huge Cost incurred for research and development of new products
2. Sales of some most popular products are falling
|1. There are still many life threatening diseases exist with no cure which can be developed |
2. Expansion to developing nations
|1. Sales affected due to third party payers including government and US legislation
2. Protection provided by patents is limited and can be challenged by competitors
USD 9.52 Great quality, Affordable pricing.
Detailed SWOT Analysis of Amgen
1. Huge cost incurred for research and development of new products: Amgen categorizes all its research and development activities into three categories Discovery research and translational science, later stage clinical program, marketed products. And as per 2016 data, all three stages costed around 1039, 1054 and 1747 million dollars. So, total cost amounts to be 3840 million dollars. Although, many Amgen products are benefitted from the subsidy by the federal research subsidies but these can not overcome the overall cost incurred.
2. Sale of some most popular products are falling: As per financial report of 2016, the sale of major products are seen to be declining. Products names and details are as follows – Neulasta sales decreased by 3% for fourth quarter and 1% for whole financial year, Epogen sales decreased by 8% for fourth quarter and 31% in the complete financial year, Neupogen sales decreased by 34% for fourth quarter and 27% for whole financial year. These products were once high selling and being in demand products. But, these are decreasing in demand which is a big concern for the company.
1. There are still many life threatening diseases exist with no cure which can be developed: There are many diseases for which cure is not available. Various kinds of diseases are spreading due to human deeds which includes population increase, pollution etc. Those diseases include Asthama, Diabetes, Ebola virus, HIV – for these diseases, no any cure is available so that the patient can be 100% safe. Although, it is possible that some of them can be stopped/paused In their preliminary stage. Being one of top pharmaceutical company Amgen can surely look for opportunities by developing the live saving medicines.
2. Expansion to developing countries: currently Amgen is having business mostly in North America and south America, Europe and China when we talk about bulk. But still Asian African countries are not yet tapped. This can be seen as plethora of opportunity as these two continents have larger population and will require more cure for diseases than those places where population is low. So, seeing this, Amgen needs to establish its branches or subsidiaries in these countries. This will help in getting better margins as well as catering to more number of population in these developing nations.
USD 9.52 Great quality, Affordable pricing.
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Amgen SWOT and PESTLE analysis has been conducted by Harsh Vaibhav and reviewed by senior analysts from Barakaat Consulting.
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