We’re Bullish on Wide-Moat Amgen

Amgen has its roots in providing supportive-care products to kidney disease and cancer patients, and free cash flow as a percentage of sales hovers near 40% as the company undertakes massive cost-cutting and improves manufacturing. Strong newer blockbusters like Prolia/Xgeva and future blockbuster Repatha should defend Amgen’s wide economic moat from erosion caused by biosimilar and branded competition.