I was in New York (which is now even more expensive and crowded) when the Federal Reserve surprised many investors by cutting short-term interest rates by half a percentage point. Meanwhile, pharmaceutical giant and current holding Amgen Inc. (AMGN) is launching new drugs to replace its old legacy drugs, notes Mark Skousen, editor of Forecasts & Strategies.
Fed chair Jay Powell wants to anticipate and avoid the coming recession, which we have been predicting for some time, and felt he could do so now that price inflation is waning. All 13 of our stocks, mutual funds, and commodities soared on the news and now enjoy double-digit-percentage gains for the year. The market continues to rally.
(Editor’s Note: Mark Skousen is speaking at the 2024 MoneyShow Orlando, which runs Oct. 17-19. Click HERE to register)
Amgen Inc. (AMGN)
As for AMGN, it recently launched the cancer drug Lumakras, with hopes that it will do better now that the Covid pandemic is behind us. Last year, Amgen acquired Tepezza, a treatment for thyroid eye disease (TED). Tepezza is the first and only TED treatment approved by the Food and Drug Administration. It is expected to do well, especially in foreign markets.
Finally, the giant drug company is involved in the fast-growing weight loss market, the hottest therapeutic area in the industry. MariTide is in a phase two study. Patients were able to keep the weight off for up to 150 days after the end of the treatment period.
MariTide may also be able to treat diabetes. Motley Fool says that MariTide “has blockbuster potential if you believe in analyst projections, generating a possible $2.1 billion in revenue by 2030. So, it could be the most important launch for Amgen in the next five years.”
Beyond MariTide, Amgen has a rich pipeline with more than 30 phase 3 programs.
Recommended Action: Buy AMGN.
