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Prescriptions & Pipelines: Amgen & Energy Transfer Partners

Amgen: A Powerhouse Of The Biotechnology Industry

Summary

  • Repatha's success could single-handedly drive Amgen higher.
  • Outside of Repatha, Amgen has a number of exciting and intriguing pipeline drugs.
  • I believe Amgen has everything it takes to become a leading biosimilar company.
  • Amgen's dividends are sustainable.

By S. Hasan Abid

Amgen has drugs in the pipeline that could benefit the company and its shareholders going forward.

Amgen (NASDAQ:AMGN), a powerhouse of the biotechnology industry, discovers, manufactures and distributes human therapeutics globally. 2015 was a fantastic, almost historic year for Amgen as it delivered solid financial results. Surprisingly though, at least right now, the market doesn't seem too interested. My thesis is that Amgen is undervalued and represents a compelling investment opportunity.

Success in the biopharmaceutical industry depends heavily on the robustness of a company's pipeline. Amgen, with no less than 11 compounds in Phase 3 trials, has an innovative and distinguished pipeline capable of fueling the company's growth in coming years. In 2015, Amgen launched four innovative products in oncology and two in cardiovascular disease, including the potentially blockbuster, cholesterol lowering PCSK-9 inhibitor, Repatha. Prescribers seem to be showing genuine interest in Repatha since its launch last summer, and I expect it to compete well with Praluent, a joint initiative of Regeneron (REGN) and Sanofi (NYSE:SNY). Hitherto, Repatha's sales haven't hit the roof, possibly due to the hefty $14,000/year price tag, but this shouldn't be taken as a sign of things to come... CONTINUE READING



Is Energy Transfer Partners A Buy?

Summary

  • First, let’s get the Williams merger issues off the table.
  • Valuing MLPs is less straightforward than valuing a public corporation.
  • The Energy Transfer family has lots of relatives.
  • To me, the fundamentals look good and point to higher prices.
  • The great tax-advantaged yield makes this a good total return vehicle.

By Tony Termini

In this article, I will discuss the reasons why investors looking for a combination of both income and capital appreciation should consider buying Energy Transfer Partners, L.P. (NYSE:ETP). Before I do, I want to discuss recent news about the potential merger of ETP's general partner, Energy Transfer Equity, L.P. (NYSE:ETE) with Williams Companies, Inc. (NYSE:WMB).

The planned merger between ETE and WMB has gotten messy and the two companies are headed to court on June 27th. It is my opinion that there are only two possible outcomes here, whether they actually make it into the courthouse or not. Either they'll merge or they won't. The bigger issue boils down to how much money one or the other party is going to be out of pocket if the deal falls through.

So, for purposes of this article, I want to focus all the attention on ETP. When I write the next article in this series about ETE, I'll go into more detail about the merger, if it isn't already resolved by then. So, now I'll get to why ETP makes sense for total return investors... CONTINUE READING

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