Amgen Inc.
AMGN
position
long
Bill Nygren, Harris Associates
Thesis
Amgen's heavy R&D spending is currently depressing its earnings, making it appear expensive relative to the pharmaceutical industry. However, when considering enterprise value to EBITDA plus R&D, Amgen looks much cheaper and has better growth prospects due to longer patent protection.
Did it work?
inconclusive
confidence: low
Without specific price performance data or a defined time horizon for the thesis, it's difficult to assess whether the investment thesis has played out. The argument regarding Amgen's R&D spending and its potential future benefits remains valid, but without further information, we cannot determine the outcome of the pitch.
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