Amgen (AMGN) Stock Falls On Positive Clinical Data: Here’s Why


Amgen, Inc. (NASDAQ: AMGN)

Amgen is having an incredibly rough day in the market today. After releasing overwhelmingly positive clinical results, the stock started to fall. So, why is it taking a dive? Well, we’ll talk about that below. In fact, we’ll discuss what we’re seeing from AMGN, why, and what we’ll be watching for with regard to the stock ahead.

What We’re Seeing From AMGN

As mentioned above, Amgen isn’t having the best of days in the market today. At the opening bell, the stock was trading dramatically low as the result of horrible pre-market activity. While the stock has seen some ups and downs since then, it is still trading on rough losses. At the moment (10:22), AMGN is trading at $168.89 per share after a loss of $11.22 per share (6.23%) thus far today.

Why The Stock Is Falling

Before we get into the details here, it’s important that we give credit where credit is due. Our partners at Trade Ideas were the first to inform us of the dive that AMGN took early this morning. As soon as we received the alert, we started working to see why the stock was falling. This one took some putting together, as the only news released by the company was positive.

You see, early this morning, Amgen released data with regard to Repatha, its clinical phase treatment. The PCSK9 inhibitor is proven to drastically reduce cholesterol in patients with high risk of heart attack or stroke. The data released showed that there was a significant reduction in both heart attack and stroke in patients that are using the treatment. So, what’s the downside? Why is the stock falling apart?

Well that all goes into something we’ve seen quite a bit in the biotech space as of late – concerns with regard to pricing. You see, AMGN has spent over $1 billion producing this treatment, and it hasn’t hit the commercial stage just yet. As a result, the company has set a price on the treatment of more than $14,000 per year. With continued pricing pressure in the biotech space, that is proving to concern investors.

My Gripe

I usually don’t do this, but I have to gripe a bit here. You people need to realize that it costs massive amounts of money to continue the medical innovation we’re seeing today. AMGN has worked hard to create a treatment that will undoubtedly save lives! To create that treatment, they’ve already spent over a billion dollars and will continue to spend more. Who pays that? Well, the patients that need the treatment!

You see, lately, the United States has been so focused on the consumer, that they are forgetting what is keeping the consumer alive – the biotech companies. Without Amgen’s innovation in the medical space, this treatment wouldn’t exist! We need to stop bashing prices and start looking into why those prices are high. Is staying alive worth $14,000 a year to you? It is to me!!! The bottom line here is that if we keep attacking companies like AMGN, who are literally making the world a better place, medical innovation will start going backwards! I get hating on the price gougers, but there is a damn good reason for a high price here; this is not gouging!

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on AMGN. In particular, we’re watching for further details with regard to the ongoing work on Repatha. We’ll continue to watch the story closely and bring the news to you as it breaks!

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[Image Courtesy of Wikimedia]


  1. Curious why you talk down to the reader? Exactly what do you accomplish addressing people as “YOU PEOPLE?” One may agree with the message but you need learn composition.
    [sent constructively]

    • I appreciate your response. I should have thought of that… should have said that the people driving biotech into the ground with criticism and without understanding need to understand. I do like that the message comes across strongly enough to be the topic of conversation. Thanks for your comment!


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