Amgen closed the first business day (1-4-10) at $57.72. As of this post (9:17 am, 12-30-2010), the price is about $55.60. That means we lost ground holding this stock since the beginning of the year. Where do you think the company is headed when it can't even grow in value? Denosumab is are only hope for growth and even that is off to a slow start. EPO/Aranesp are declining in sales and Enbrel is barely holding on. And one poster has asked what the Xgeva bonus will be. I don't see anything to write home about. I predict more layoffs and overhead chopping.
What good is it when the company gives you share bonuses and it's under water? How do we benefit if the company won't give us dividends? Instead they buy back shares which have had no positive impact on the price! But it sure has on the downside. Put more money in and get less back.
But just wait and see what the BOD gets for bonuses. I can't wait to see the spin on how thsy exceeded thier goals this year.
You can bet that they will be put in a light that looks like we couldn't have done it without their wisdom and positive actions. Makes me VERY sick! The immediate worry should be the possibility of Amgen buying another loser company that will take years to pay down. Don't say, "remember the Alamo". Instead, "remember Immunex"!
The problem with the Immunex acquisition wasn't related to value added but rather stemmed from the structure of the deal. Enbrel sales have exceeded expectations, but Amgen hasn't reaped a proportional benefit. And the proportion of the current pipeline derived from Immunex/AWA research is larger on a per-FTE basis than that of any other research site including ATO!
I know that deal backward and forward. Any way you cut it, Amgen lost and will continue to lose as the break even won't take place for years. The prospectus reads 17 billion dollars to purchase and part of that went to a cash payment of $4.50 a share. That's dilutive. The actual net for Enbrel sales is about ten percent. Remember, the deal went down with Amgen splitting the take 50/50 for the U.S. and Canada. The rest (the world) went to Wyeth. Very poor deal!
Clean out the management (top ones to bottom ones), and get some good stewardship. We can't afford more Immunex disasters. Maybe we have a viral infection.
Onyx is a bust? What for $10 billion?? That's why all the layoffs, Bob Brataway goofed and now jobs pay the price.
California Socialism is better. Get a VW CamperVan and hangout out @ Brochard and 101, collect SUI. Life is good!