3 Amgen Biologics Facing Generic Competition

Amgen  (NASDAQ: AMGN  )  is pouring billions of dollars into biosimilar development in an attempt to capture lucrative markets enjoyed by several widely successful biologic drugs that are due to come off patent in the next several years. Ironically, the company knows how it feels to lose out to generic competition, with three successful biologics coming off patent in major markets. There are millions of dollars at stake, so investors need to watch both sides of the biosimilar equation. In the following video, Fool contributor Maxx Chatsko goes over the immediate generic threats facing Amgen's Aranesp, Epogen, and Neupogen. 

Luckily for innovator biologics, generic development is a lengthy and costly process. It can take up to eight years and $250 million to develop a biosimilar, compared to just three years and $3 million for small molecule generics. This limits the number of companies that can get in on the action and also insulates revenue streams of innovator drugs. That hasn't kept an onslaught of competition from taking place, so biotech investors need to become familiar with market development. 

While you can certainly make huge gains in biotech and pharmaceuticals, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2459172, ~/Articles/ArticleHandler.aspx, 10/30/2014 9:23:47 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement