Amgen's cancer drug is a potential blockbuster

Bloomberg posted an interesting article today about Amgen’s (AMGN) experimental drug denosumab. One of the biggest reasons that we like Amgen is our expectations for this potential blockbuster – a drug that generates $1 billion in annual sales – which we expect to be a key growth driver.

Amgen is currently seeking U.S. approval to sell denosumab for osteoporosis, but studies have shown that the drug can also halt cancer’s spread in bones. According to some estimates, denosumab could generate $1.8 billion a year for halting prostate tumors and an added $1.2 billion for breast malignancies.

Amgen’s currently has five blockbuster drugs, which helped push global sales to $15 billion in 2008. Still, a potential blockbuster like denosumab could really help take the pressure off Amgen’s other drugs, which are facing higher scrutiny from the FDA as well as increased competition from both branded and biosimilar (generic biologic).

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Peter J. Lazaroff