Amgen Outperforms Market Turmoil With Life-Saving Drugs and Strong Pipeline
Amgen has demonstrated its ability to withstand economic downturns by consistently delivering solid financial results during periods of market turmoil. The company's defensive capabilities are rooted in its portfolio of life-saving drugs, which patients rely on regardless of economic conditions.
In the Great Recession, Amgen outperformed the broader market, with its stock price declining less than the S&P 500 index. Even in 2008, when many large-cap stocks suffered significant losses, Amgen posted a gain that year.
Similarly, during the 2022 bear market, Amgen's share price rose significantly, setting it apart from other large-cap stocks. This resilience is attributed to several factors, including its deep research and development pipeline, which contains multiple attractive drug candidates.
One such candidate is MariTide, an investigational long-acting weight-loss drug being tested for obesity and related diseases. Amgen's portfolio of life-saving medicines also includes denosumab, a drug that accounted for nearly 20% of the company's total revenue in 2024 but still achieved revenue growth after losing patent exclusivity.
Amgen is also an excellent dividend stock, with a payout history dating back to 2011 and a current dividend yield of 2.6%, far above the S&P 500 average of 1.1%. This makes Amgen an attractive option for investors seeking to prepare for market downturns.