WEBVTT 00:00:00.000 --> 00:00:02.180 Welcome back to the deep dive where we take complex 00:00:02.180 --> 00:00:04.860 source material on corporate giants and groundbreaking 00:00:04.860 --> 00:00:07.259 science and give you the comprehensive shortcut 00:00:07.259 --> 00:00:10.099 to understanding what really matters. And today 00:00:10.099 --> 00:00:13.919 we are really cracking open the vault on a true 00:00:13.919 --> 00:00:16.699 biotech behemoth. We really are a company whose 00:00:16.699 --> 00:00:19.300 entire history is basically synonymous with the 00:00:19.300 --> 00:00:22.550 rise of modern medicine itself. Amgen Inc. And 00:00:22.550 --> 00:00:24.370 when we call it foundational, I mean, we are 00:00:24.370 --> 00:00:26.609 talking about a company that has been there since 00:00:26.609 --> 00:00:29.629 the very, very first waves of biotechnology. 00:00:30.390 --> 00:00:33.590 Amgen's work is just. It's woven into the fabric 00:00:33.590 --> 00:00:36.810 of treatments for chronic kidney disease, severe 00:00:36.810 --> 00:00:40.289 anemia, supportive care for cancer. Yeah. They 00:00:40.289 --> 00:00:42.689 aren't just a major player. Yeah. In a lot of 00:00:42.689 --> 00:00:44.369 ways, they define the game in several of these 00:00:44.369 --> 00:00:46.450 therapeutic areas. Absolutely. The company started 00:00:46.450 --> 00:00:49.609 way back in 1980 with a name that, well. It perfectly 00:00:49.609 --> 00:00:52.030 captured its audacious goal. It was founded as 00:00:52.030 --> 00:00:55.329 Applied Molecular Genetics. AMGen. AMGen, exactly. 00:00:55.409 --> 00:00:57.630 It's the perfect portmanteau for a company built 00:00:57.630 --> 00:01:00.950 entirely on translating the promise of recombinant 00:01:00.950 --> 00:01:04.030 DNA technology into actual, reliable pharmaceutical 00:01:04.030 --> 00:01:07.390 products. And that combination of basic science, 00:01:07.549 --> 00:01:11.170 the molecular genetics part, and the commercial 00:01:11.170 --> 00:01:13.790 focus, the applied part, that really defined 00:01:13.790 --> 00:01:16.530 their trajectory from day one. Right. It signaled 00:01:16.530 --> 00:01:18.939 an intent to rapidly move forward. discovery 00:01:18.939 --> 00:01:21.920 out of the lab and into the clinic exactly so 00:01:21.920 --> 00:01:24.280 our mission today is driven by the sources you've 00:01:24.280 --> 00:01:26.620 shared with us we're going to give you a comprehensive 00:01:26.620 --> 00:01:29.519 shortcut to understanding Amgen's full story 00:01:29.950 --> 00:01:33.269 Their staggering modern scale, the history of 00:01:33.269 --> 00:01:35.989 their first blockbuster drugs, their core therapeutic 00:01:35.989 --> 00:01:38.730 focus, which now generates tens of billions a 00:01:38.730 --> 00:01:42.370 year, and the operational complexity of a company 00:01:42.370 --> 00:01:44.989 this big. Which includes both stunning innovation 00:01:44.989 --> 00:01:47.769 in their pipeline and some high -stakes legal 00:01:47.769 --> 00:01:50.310 challenges in the courtroom. For sure. And to 00:01:50.310 --> 00:01:52.450 set the scene, this isn't just a large company. 00:01:52.469 --> 00:01:55.090 This is a component of the financial and scientific 00:01:55.090 --> 00:01:57.530 infrastructure of the world. Amgen is ranked 00:01:57.530 --> 00:02:00.250 as the 18th largest biomedical company by revenue. 00:02:00.450 --> 00:02:03.230 Its economic standing is immense. It's a component 00:02:03.230 --> 00:02:05.870 of the NASDAQ 100, the S &P 100, the S &P 500, 00:02:06.030 --> 00:02:09.030 and, critically, the Dow Jones Industrial Average. 00:02:09.250 --> 00:02:11.650 When you understand Amgen, you really understand 00:02:11.650 --> 00:02:14.129 how foundational biotechnology operates on a 00:02:14.129 --> 00:02:16.860 global scale. Okay, let's unpack this. Starting 00:02:16.860 --> 00:02:19.599 immediately with the sheer undeniable scale of 00:02:19.599 --> 00:02:22.340 this company, just using the 2024 data to truly 00:02:22.340 --> 00:02:25.300 grasp the weight they carry in the economy. So 00:02:25.300 --> 00:02:28.580 looking at the 2024 financial snapshot, the numbers 00:02:28.580 --> 00:02:30.819 are, I mean, they're simply staggering. It really 00:02:30.819 --> 00:02:32.539 validates its place on all those indices you 00:02:32.539 --> 00:02:35.080 just mentioned. The total revenue figure sits 00:02:35.080 --> 00:02:39.740 at U .S. $33 .4 billion. That's the kind of revenue 00:02:39.740 --> 00:02:42.159 that dictates research directions for like entire 00:02:42.159 --> 00:02:43.919 sectors. For the whole industry. And it's not 00:02:43.919 --> 00:02:45.740 just the sales volume, the profitability demonstrated. 00:02:45.900 --> 00:02:48.599 some serious operational maturity. We see operating 00:02:48.599 --> 00:02:51.240 income at, what, $7 .26 billion and net income 00:02:51.240 --> 00:02:54.740 at $4 .09 billion. Right. In an industry that 00:02:54.740 --> 00:02:57.800 is just defined by massive R &D failure rates 00:02:57.800 --> 00:03:00.740 and patent cliffs, maintaining consistent multi 00:03:00.740 --> 00:03:03.280 -billion dollar profits, it shows they've truly 00:03:03.280 --> 00:03:05.500 mastered that transition from discovery to efficient 00:03:05.500 --> 00:03:08.419 mass production. They also have this colossal 00:03:08.419 --> 00:03:12.139 physical footprint and a huge balance sheet with 00:03:12.139 --> 00:03:16.759 total assets reported at US $91 .8 billion. Right. 00:03:17.210 --> 00:03:19.750 That scale of assets, you know, the specialized 00:03:19.750 --> 00:03:22.349 bioreactors, the clean rooms, the complex supply 00:03:22.349 --> 00:03:24.449 chain infrastructure and all that extensive intellectual 00:03:24.449 --> 00:03:28.169 property, it acts as a massive barrier to entry 00:03:28.169 --> 00:03:30.750 for any smaller competitors. And that specialized 00:03:30.750 --> 00:03:33.030 infrastructure, it requires specialized talent. 00:03:33.270 --> 00:03:36.550 Their employee count worldwide sits at 28 ,000 00:03:36.550 --> 00:03:39.330 people. 28 ,000. And these aren't just staff. 00:03:39.409 --> 00:03:41.610 These are highly trained scientists, quality 00:03:41.610 --> 00:03:44.590 control experts, logistics professionals. all 00:03:44.590 --> 00:03:46.689 necessary to manufacture and distribute these 00:03:46.689 --> 00:03:49.530 complex biologic drugs all over the world. Speaking 00:03:49.530 --> 00:03:51.129 of their blueprint, let's just ground ourselves 00:03:51.129 --> 00:03:53.009 geographically and historically for a second. 00:03:53.150 --> 00:03:55.789 The company officially launched on April 8, 1980, 00:03:56.090 --> 00:03:58.550 and its headquarters is still in Thousand Oaks, 00:03:58.629 --> 00:04:00.689 California. Which is a crucial hub for the American 00:04:00.689 --> 00:04:03.090 biotech industry. Absolutely. And the leadership 00:04:03.090 --> 00:04:05.710 maintains a certain stability and a clear direction. 00:04:06.729 --> 00:04:09.009 Robert A. Bradway is the chairman, president, 00:04:09.150 --> 00:04:12.849 and CEO, while Howard Y. Chang is the chief scientific 00:04:12.849 --> 00:04:16.209 officer. The experience they've accumulated over 00:04:16.209 --> 00:04:18.990 four decades, particularly in managing the unique 00:04:18.990 --> 00:04:21.629 challenges of biologic drug development, that 00:04:21.629 --> 00:04:24.579 gives them a real operational edge. Now, here's 00:04:24.579 --> 00:04:26.899 a corporate detail that is just absolutely critical 00:04:26.899 --> 00:04:29.800 for understanding Amgen's operational risk and 00:04:29.800 --> 00:04:32.540 their commercial strategy. And that's the extreme 00:04:32.540 --> 00:04:35.019 supply chain concentration in the U .S. distribution 00:04:35.019 --> 00:04:38.240 system. Ah, yes. We learned that Amgen receives 00:04:38.240 --> 00:04:40.800 approximately 80 percent of its total revenues 00:04:40.800 --> 00:04:44.759 from sales to just three large U .S. drug wholesalers. 00:04:44.800 --> 00:04:47.120 80 percent. That is a massive centralization 00:04:47.120 --> 00:04:49.639 of sales power. It creates a fascinating strategic 00:04:49.639 --> 00:04:52.360 tension. Those three essential companies are 00:04:52.360 --> 00:04:54.379 McKesson Corporation, Sincora, which used to 00:04:54.379 --> 00:04:56.639 be AmerisourceBergen, and Cardinal Health. Right. 00:04:56.759 --> 00:04:59.339 These wholesalers, they control the last mile 00:04:59.339 --> 00:05:01.120 distribution network across the whole country. 00:05:01.220 --> 00:05:03.000 They move drugs from the manufacturing plant 00:05:03.000 --> 00:05:05.379 to nearly every pharmacy, clinic, and hospital. 00:05:05.680 --> 00:05:08.759 So the implication of having 80 % of your revenue 00:05:08.759 --> 00:05:11.300 concentrated with just three partners has to 00:05:11.300 --> 00:05:14.259 be double -edged, right? On one hand, it drastically 00:05:14.259 --> 00:05:16.139 simplifies commercial negotiations. You have 00:05:16.139 --> 00:05:18.779 three massive contracts that determine most of 00:05:18.779 --> 00:05:20.839 your yearly cash flow. But on the other hand, 00:05:20.839 --> 00:05:23.879 it creates a massive dependency. Does that concentration 00:05:23.879 --> 00:05:26.399 mean they're trading reliability for massive 00:05:26.399 --> 00:05:28.779 market leverage against them? Well, it creates 00:05:28.779 --> 00:05:31.579 leverage, yes, but for the wholesalers, not necessarily 00:05:31.579 --> 00:05:34.819 for Amgen. Amgen must employ highly sophisticated 00:05:34.819 --> 00:05:37.939 strategic countermeasures to manage this risk. 00:05:38.019 --> 00:05:40.720 I'll bet. I mean, they are likely engaged in 00:05:40.720 --> 00:05:44.519 these extraordinarily complex volume based contracts 00:05:44.519 --> 00:05:47.079 that include guarantees, specific payment terms, 00:05:47.240 --> 00:05:49.319 inventory sharing arrangements. Their logistics 00:05:49.319 --> 00:05:51.600 teams are probably dedicated solely to optimizing 00:05:51.600 --> 00:05:54.620 flows with just those three partners. It also 00:05:54.620 --> 00:05:56.259 tells you something really profound about the 00:05:56.259 --> 00:05:58.459 power structure of the American health care ecosystem. 00:05:59.019 --> 00:06:02.240 Amgen can spend billions on R &D to create a 00:06:02.240 --> 00:06:04.360 groundbreaking drug. But if just one of those 00:06:04.360 --> 00:06:07.720 three wholesalers changes its terms or, you know, 00:06:07.720 --> 00:06:10.300 faces. is a major logistical challenge. Amgen's 00:06:10.300 --> 00:06:14.420 revenue stream is immediately at risk. They have 00:06:14.420 --> 00:06:16.839 to prioritize the health of those three relationships 00:06:16.839 --> 00:06:19.199 above almost everything else in their commercial 00:06:19.199 --> 00:06:22.139 operations. Wow. Precisely. It's a structural 00:06:22.139 --> 00:06:24.980 feature of the U .S. market, but that 80 % figure, 00:06:25.100 --> 00:06:28.310 it's a loud warning signal. about the intensity 00:06:28.310 --> 00:06:30.930 of that commercial dependency. Yeah. It really 00:06:30.930 --> 00:06:33.170 underscores why Amgen is constantly investing 00:06:33.170 --> 00:06:35.769 in supply chain resiliency and expanding its 00:06:35.769 --> 00:06:38.990 own global manufacturing footprint, sort of hedging 00:06:38.990 --> 00:06:42.370 against potential disruption in that core U .S. 00:06:42.370 --> 00:06:44.410 distribution channel. And just to reiterate the 00:06:44.410 --> 00:06:46.569 global context of the scale, Amgen's economic 00:06:46.569 --> 00:06:50.069 power places it 134th on the Fortune 500 list 00:06:50.069 --> 00:06:53.569 and 22nd on the Forbes Global 2000. It's a company 00:06:53.569 --> 00:06:56.269 that has moved far, far beyond the initial ambitious 00:06:56.269 --> 00:06:58.949 science. project it started as in 1980. No kidding. 00:06:59.170 --> 00:07:01.269 They are a top -tier enterprise, but to understand 00:07:01.269 --> 00:07:03.910 how they actually achieved this status, we have 00:07:03.910 --> 00:07:06.009 to look back at those first crucial scientific 00:07:06.009 --> 00:07:08.009 and commercial leaps they made. Which brings 00:07:08.009 --> 00:07:10.290 us perfectly to how they did it, those foundational 00:07:10.290 --> 00:07:13.110 scientific breakthroughs of the 1980s and 90s. 00:07:13.310 --> 00:07:16.110 So the launch of applied molecular genetics in 00:07:16.110 --> 00:07:20.519 April 1980 was... It was less a sure bet and 00:07:20.519 --> 00:07:22.779 more a testament to scientific optimism, really. 00:07:22.879 --> 00:07:25.300 It was backed by venture capitalists who were 00:07:25.300 --> 00:07:28.939 betting big on this nascent, relatively unproven 00:07:28.939 --> 00:07:32.279 field of recombinant DNA technology. And their 00:07:32.279 --> 00:07:34.959 initial focus wasn't even the eventual blockbusters. 00:07:35.040 --> 00:07:37.540 They were apparently interested in recombinant 00:07:37.540 --> 00:07:40.139 human insulin first. And that focus shows you 00:07:40.139 --> 00:07:41.959 exactly where the scientific momentum was at 00:07:41.959 --> 00:07:44.759 the time, solving the problem of reliable, mass 00:07:44.759 --> 00:07:47.579 -produced human proteins. This required immense 00:07:47.579 --> 00:07:49.720 scientific... faith in investment, bringing together 00:07:49.720 --> 00:07:52.540 a really heavy hitting initial scientific advisory 00:07:52.540 --> 00:07:55.139 board featuring giants like Leroy Hood. Right. 00:07:55.220 --> 00:07:56.920 They were essentially creating the playbook for 00:07:56.920 --> 00:07:58.819 the modern biotech company as they went along. 00:07:59.000 --> 00:08:01.339 And that early faith was pretty quickly rewarded 00:08:01.339 --> 00:08:05.540 with capital. By June 17th, 1983, Amgen executed 00:08:05.540 --> 00:08:08.379 a successful initial public offering. They raised 00:08:08.379 --> 00:08:11.139 nearly $40 million by selling 2 million common 00:08:11.139 --> 00:08:15.620 shares. And $40 million in 1983 for a company 00:08:15.620 --> 00:08:18.269 that had Virtually no commercial products yet. 00:08:18.430 --> 00:08:21.089 That was a huge declaration of market confidence 00:08:21.089 --> 00:08:23.250 in the science itself. For sure. That successful 00:08:23.250 --> 00:08:26.870 IPO provided the essential war chest to bridge 00:08:26.870 --> 00:08:30.009 that chasm between pure lab research and the 00:08:30.009 --> 00:08:33.289 lengthy, expensive clinical trials and manufacturing 00:08:33.289 --> 00:08:36.269 scale -up that would follow. That money was the 00:08:36.269 --> 00:08:38.929 fuel for their next massive discovery. Speaking 00:08:38.929 --> 00:08:42.070 of massive discovery, let's turn to the Erythropoietin 00:08:42.070 --> 00:08:44.590 revolution, the birth of Epogen. I mean, this 00:08:44.590 --> 00:08:47.289 is truly the scientific achievement that cemented 00:08:47.289 --> 00:08:49.470 Amgen's future. This was happening right around 00:08:49.470 --> 00:08:52.840 the time of the IPO. In 1983, a research team 00:08:52.840 --> 00:08:55.860 led by Fu Kun Lin achieved this seminal feat. 00:08:55.980 --> 00:08:58.059 They successfully cloned the erythropoietin gene. 00:08:58.259 --> 00:09:00.019 Can you break down the biology quickly for the 00:09:00.019 --> 00:09:03.460 listener? What is erythropoietin or EPO and what 00:09:03.460 --> 00:09:05.700 problem did its scarcity create for patients? 00:09:06.019 --> 00:09:08.419 Sure. So erythropoietin is a hormone that's primarily 00:09:08.419 --> 00:09:10.820 produced in the kidneys. It serves one vital 00:09:10.820 --> 00:09:13.159 function. It signals the bone marrow to produce 00:09:13.159 --> 00:09:15.320 red blood cells. So patients with chronic kidney 00:09:15.320 --> 00:09:18.200 failure, especially those on dialysis, they suffer 00:09:18.200 --> 00:09:20.659 from severe anemia because they're damaged kidneys 00:09:20.659 --> 00:09:24.000 can't produce enough natural EPO. So before Amgen, 00:09:24.080 --> 00:09:26.340 what did they do? Well, before Amgen's breakthrough, 00:09:26.639 --> 00:09:29.440 these patients often had to rely on really difficult 00:09:29.440 --> 00:09:31.960 blood transfusions, which were far from ideal 00:09:31.960 --> 00:09:34.600 and carried a lot of risks. So by cloning the 00:09:34.600 --> 00:09:37.080 gene, they could use these specialized cell lines 00:09:37.080 --> 00:09:39.519 to act as tiny factories, basically, producing 00:09:39.519 --> 00:09:43.080 safe, reliable, and massive quantities of human 00:09:43.080 --> 00:09:46.480 EPO protein. Exactly. This recombinant process 00:09:46.480 --> 00:09:50.000 led directly to epigen, or epoetin alpha, which 00:09:50.000 --> 00:09:53.309 received FDA approval in 1989. And this wasn't 00:09:53.309 --> 00:09:55.289 just a new drug. It created a whole new standard 00:09:55.289 --> 00:09:57.529 of care. Right. It essentially solved the anemia 00:09:57.529 --> 00:09:59.909 crisis for millions of dialysis and kidney disease 00:09:59.909 --> 00:10:02.590 patients worldwide and immediately established 00:10:02.590 --> 00:10:05.289 Amgen as a leading therapeutic company. The timeline 00:10:05.289 --> 00:10:08.049 is so impressive. Founded in 1980, they clone 00:10:08.049 --> 00:10:10.309 the gene in 83 and then have FDA approval by 00:10:10.309 --> 00:10:12.909 1989. And they were thinking globally right away. 00:10:13.090 --> 00:10:15.789 In 1984, they formed a joint venture with Kirin. 00:10:16.009 --> 00:10:19.700 Yes. granting Karen the rights to Epogen in Japan, 00:10:20.019 --> 00:10:23.159 securing a strategic foothold in a massive Asian 00:10:23.159 --> 00:10:25.340 market really early on. That deal must have been 00:10:25.340 --> 00:10:28.000 critical. Oh, it was. It not only secured capital, 00:10:28.059 --> 00:10:30.919 but also demonstrated an understanding that these 00:10:30.919 --> 00:10:33.419 breakthroughs needed global commercialization, 00:10:33.539 --> 00:10:36.340 not just a U .S. market focus. But the breakthroughs 00:10:36.340 --> 00:10:38.679 didn't stop there. Their second major development 00:10:38.679 --> 00:10:42.480 tackled a different but an equally critical aspect 00:10:42.480 --> 00:10:45.620 of blood disorders, neutropenia treatment with 00:10:45.620 --> 00:10:48.350 Neupogen. Just a year after the Kiran deal, in 00:10:48.350 --> 00:10:52.490 1985, another key Amgen team, this one led by 00:10:52.490 --> 00:10:55.529 Larry Souza, cloned Granulocyte Colony Stimulating 00:10:55.529 --> 00:10:58.710 Factor, or GCSF. And GCSF is sort of the white 00:10:58.710 --> 00:11:01.350 blood cell equivalent of EPO, correct? Precisely. 00:11:01.710 --> 00:11:04.029 GCSF stimulates the production of granulocytes, 00:11:04.149 --> 00:11:06.129 which are white blood cells that are essential 00:11:06.129 --> 00:11:08.269 for fighting off bacterial infections. And the 00:11:08.269 --> 00:11:10.269 immediate target population was chemotherapy 00:11:10.269 --> 00:11:13.210 patients. Right. Chemotherapy is, well, it's 00:11:13.210 --> 00:11:15.409 a blunt instrument. It kills cancer cells, but 00:11:15.409 --> 00:11:17.850 it also... destroys rapidly dividing immune cells. 00:11:17.990 --> 00:11:20.970 This leads to a severely suppressed immune system, 00:11:21.070 --> 00:11:23.269 a condition called neutropenia. Which leaves 00:11:23.269 --> 00:11:25.750 patients highly vulnerable to life -threatening 00:11:25.750 --> 00:11:29.470 infections. Exactly. And Neupogen, or filgrastim, 00:11:29.570 --> 00:11:32.190 provided the essential support. So how did it 00:11:32.190 --> 00:11:34.889 do that? Well, it was approved by the FDA in 00:11:34.889 --> 00:11:38.190 1991, and Neupogen allowed patients to continue 00:11:38.190 --> 00:11:40.750 their chemotherapy regimens with much greater 00:11:40.750 --> 00:11:43.860 safety. Where Epigen addressed red blood cell 00:11:43.860 --> 00:11:46.080 deficiency, Neupogen addressed white blood cell 00:11:46.080 --> 00:11:48.580 deficiencies. And both from the same core tech. 00:11:48.860 --> 00:11:52.360 These two drugs, both arrived from the same foundational 00:11:52.360 --> 00:11:55.860 recombinant DNA technology, established Amgen 00:11:55.860 --> 00:11:58.320 as an absolute powerhouse in supportive care 00:11:58.320 --> 00:12:01.820 for two major chronic diseases, kidney failure 00:12:01.820 --> 00:12:04.769 and cancer. And the company was scaling its operations 00:12:04.769 --> 00:12:07.590 to match that scientific output. We see Gordon 00:12:07.590 --> 00:12:10.169 Binder succeeding George Rathman as CEO in late 00:12:10.169 --> 00:12:12.509 1988, which was right before the Ipigen launch. 00:12:12.730 --> 00:12:14.850 Yeah. And operationally, they made huge investments. 00:12:14.990 --> 00:12:17.350 In March 1993, they opened their facility in 00:12:17.350 --> 00:12:19.450 Puerto Rico, which rapidly became their flagship 00:12:19.450 --> 00:12:22.110 manufacturing site. You can't produce complex, 00:12:22.250 --> 00:12:24.809 high -volume biologics like these without massive, 00:12:24.950 --> 00:12:27.850 dedicated, specialized infrastructure. And the 00:12:27.850 --> 00:12:30.210 quality of their work was recognized at the highest 00:12:30.210 --> 00:12:34.049 level. In 1994, Amgen was only the fifth company 00:12:34.049 --> 00:12:36.529 ever to receive the National Medal of Technology 00:12:36.529 --> 00:12:39.700 and Innovation. Which is incredible. Yeah, specifically 00:12:39.700 --> 00:12:42.539 for improving the quality of life for kidney 00:12:42.539 --> 00:12:44.980 and cancer patients through these revolutionary 00:12:44.980 --> 00:12:48.440 medicines. That is a phenomenal historical marker. 00:12:48.559 --> 00:12:50.960 It just confirms the transformative societal 00:12:50.960 --> 00:12:54.100 impact of their initial products. Yet the innovation 00:12:54.100 --> 00:12:57.519 didn't stop once they had the drug. They immediately 00:12:57.519 --> 00:13:00.909 began optimizing the drug delivery itself. Which 00:13:00.909 --> 00:13:04.690 brings us to RNFs, or Darbopoietin Alpha. Developed 00:13:04.690 --> 00:13:07.450 by Steve Elliott's team in the mid -1990s. Right. 00:13:07.549 --> 00:13:10.070 And this is a beautiful example of chemical ingenuity 00:13:10.070 --> 00:13:12.840 applied to a blockbuster molecule. Elliott's 00:13:12.840 --> 00:13:15.080 team figured out how to use N -glycosylation, 00:13:15.220 --> 00:13:17.299 which is essentially attaching more sugar molecules 00:13:17.299 --> 00:13:20.080 to the original erythropoietin structure. Why 00:13:20.080 --> 00:13:22.039 do that? I mean, it sounds like a subtle change, 00:13:22.200 --> 00:13:24.179 but it had massive implications for patients. 00:13:24.620 --> 00:13:27.440 It absolutely did. In biological terms, adding 00:13:27.440 --> 00:13:29.899 those sugar molecules dramatically increased 00:13:29.899 --> 00:13:31.940 the half -life of the protein in the bloodstream. 00:13:32.559 --> 00:13:35.039 The original epigen required pretty frequent 00:13:35.039 --> 00:13:37.279 injections, which is a real burden for chronic 00:13:37.279 --> 00:13:40.759 patients. So, Aranesp. ARNS, by lasting significantly 00:13:40.759 --> 00:13:43.960 longer, meant patients needed injections much 00:13:43.960 --> 00:13:47.200 less often, maybe weekly or even biweekly instead 00:13:47.200 --> 00:13:50.299 of multiple times a week. That's a massive improvement 00:13:50.299 --> 00:13:53.679 in patient convenience and compliance. It takes 00:13:53.679 --> 00:13:56.019 a successful, life -saving drug and makes it 00:13:56.019 --> 00:13:58.740 dramatically more manageable for the user. It 00:13:58.740 --> 00:14:01.559 ensures compliance stays high and maximizes its 00:14:01.559 --> 00:14:03.720 commercial lifespan. It illustrates that continuous 00:14:03.720 --> 00:14:06.600 optimization and formulation science is just 00:14:06.600 --> 00:14:09.500 as vital as the initial discovery. Aranesp, as 00:14:09.500 --> 00:14:11.759 we'll see, is still a major revenue driver two 00:14:11.759 --> 00:14:14.139 decades later because of that early optimization 00:14:14.139 --> 00:14:16.950 effort. Okay, that gives us the historical bedrock, 00:14:17.029 --> 00:14:19.529 that moment they established their identity through 00:14:19.529 --> 00:14:22.529 recombinant DNA. Now, let's fast forward and 00:14:22.529 --> 00:14:24.870 examine what the modern Amgen portfolio looks 00:14:24.870 --> 00:14:27.210 like, especially the drugs driving over $20 billion 00:14:27.210 --> 00:14:30.679 in annual revenue today. Here's where it gets 00:14:30.679 --> 00:14:32.879 really interesting, looking at the therapeutic 00:14:32.879 --> 00:14:35.460 areas that are generating those massive 2024 00:14:35.460 --> 00:14:39.080 revenue figures. I mean, while Epigen and Neupogen 00:14:39.080 --> 00:14:41.399 built the house, today's financial engine is 00:14:41.399 --> 00:14:43.500 focused heavily on bone health, inflammation, 00:14:43.600 --> 00:14:48.120 and sophisticated targeted oncology. Let's begin 00:14:48.120 --> 00:14:50.860 with their sheer dominance in bone health. Their 00:14:50.860 --> 00:14:53.879 paired products, Prolia and Extiva, which both 00:14:53.879 --> 00:14:57.120 use the molecule dinosumab, are absolutely essential 00:14:57.120 --> 00:14:59.080 to the company's financials. Essential is the 00:14:59.080 --> 00:15:02.120 word. Their combined 2024 revenues hit $6 .7 00:15:02.120 --> 00:15:05.000 billion. That's a powerful concentration of revenue 00:15:05.000 --> 00:15:07.259 stemming from a single versatile mechanism. Prolia 00:15:07.259 --> 00:15:09.879 specifically targets osteoporosis, and the clinical 00:15:09.879 --> 00:15:12.440 data supporting its use is just stellar. Trials 00:15:12.440 --> 00:15:14.480 showed it reduced the rate of vertebral fractures 00:15:14.480 --> 00:15:17.519 by 61 % and the risk of hip fractures by 40%. 00:15:17.519 --> 00:15:19.279 That was for postmenopausal women. It was approved 00:15:19.279 --> 00:15:22.049 back in... 2010. Right. And that reduction in 00:15:22.049 --> 00:15:24.409 hip fracture risk is a defining characteristic. 00:15:24.929 --> 00:15:27.870 A hip fracture is a massive morbidity and mortality 00:15:27.870 --> 00:15:30.210 driver in the elderly population. It really is. 00:15:30.309 --> 00:15:33.490 But what sets Dinosumab apart from the older 00:15:33.490 --> 00:15:36.009 treatments, like bisphosphonates, which really 00:15:36.009 --> 00:15:38.129 dominated the market before it? That's a crucial 00:15:38.129 --> 00:15:40.909 point. Dinosumab operates differently. It's a 00:15:40.909 --> 00:15:43.470 monoclonal antibody that specifically blocks 00:15:43.470 --> 00:15:46.850 something called the rank ligand, or ang -ankale. 00:15:47.009 --> 00:15:51.269 Okay. By stopping rancale from Activating osteoclasts, 00:15:51.269 --> 00:15:53.309 those are the cells that break down bone. It 00:15:53.309 --> 00:15:55.629 prevents bone loss and increases bone density. 00:15:56.560 --> 00:15:59.200 Older bisphosphonates work by inducing osteoclast 00:15:59.200 --> 00:16:01.539 suicide, which is a much less targeted mechanism. 00:16:02.340 --> 00:16:04.799 Dinosumab offers a more precise, high -efficacy 00:16:04.799 --> 00:16:07.279 solution. Which justifies its market dominance. 00:16:07.500 --> 00:16:09.419 Exactly. And the commercial brilliance is the 00:16:09.419 --> 00:16:11.899 dual application. Xgeva, approved the same year, 00:16:11.980 --> 00:16:14.620 uses the exact same mechanism, dinosumab, but 00:16:14.620 --> 00:16:16.720 it's targeted at cancer patients. Right, to prevent 00:16:16.720 --> 00:16:19.259 skeletal -related events in patients whose solid 00:16:19.259 --> 00:16:22.960 tumors have metastasized to the bone. Same science, 00:16:23.100 --> 00:16:26.059 different patient population. Prolia helps prevent 00:16:26.059 --> 00:16:29.159 general age -related bone loss, and Xgeva helps 00:16:29.159 --> 00:16:31.399 cancer patients avoid pathological fractures, 00:16:31.419 --> 00:16:33.779 spinal compression, or the need for radiation 00:16:33.779 --> 00:16:36.960 to the bone. That strategic versatility just 00:16:36.960 --> 00:16:39.720 maximizes the return on the dinosumab discovery. 00:16:40.490 --> 00:16:42.250 And they really cemented this market leadership 00:16:42.250 --> 00:16:46.649 with Evinity or Romasozumab. It's another osteoporosis 00:16:46.649 --> 00:16:49.809 treatment approved in 2019. It generated $1 .5 00:16:49.809 --> 00:16:52.850 billion in 2024. So they're not resting. No. 00:16:52.889 --> 00:16:55.250 This shows they are constantly innovating within 00:16:55.250 --> 00:16:57.799 their strongest therapeutic areas. Moving into 00:16:57.799 --> 00:17:00.500 the autoimmune and inflammation portfolio, we 00:17:00.500 --> 00:17:03.740 find another massive historic blockbuster, Enbrel 00:17:03.740 --> 00:17:06.480 or Etanercept. This drug is a legacy product 00:17:06.480 --> 00:17:09.259 from their 2002 Immunix acquisition. And despite 00:17:09.259 --> 00:17:11.720 its age and all the competition, it still generated 00:17:11.720 --> 00:17:15.200 $3 .3 billion in 2024 for various forms of arthritis 00:17:15.200 --> 00:17:18.230 and chronic inflammatory diseases. Wow. And Brill 00:17:18.230 --> 00:17:20.430 remains a flagship biologic for rheumatoid arthritis. 00:17:20.789 --> 00:17:22.849 Its longevity really underscores the clinical 00:17:22.849 --> 00:17:25.490 value of targeting TNF -alpha, a key inflammatory 00:17:25.490 --> 00:17:27.849 molecule. But maintaining that revenue has to 00:17:27.849 --> 00:17:30.759 be challenging. Oh, incredibly. They face constant 00:17:30.759 --> 00:17:33.140 pressure from biosimilars. These are lower -cost 00:17:33.140 --> 00:17:35.940 approved versions of the original biologic, which 00:17:35.940 --> 00:17:38.819 necessitates aggressive commercial defenses and 00:17:38.819 --> 00:17:40.960 specialized patient support programs. That's 00:17:40.960 --> 00:17:43.519 the definition of a mature market fighter. Then 00:17:43.519 --> 00:17:46.799 we have Otezla, or Apremilast, generating $2 00:17:46.799 --> 00:17:52.180 .1 billion in 2024 revenues. Otezla is used primarily 00:17:52.180 --> 00:17:55.579 for psoriasis and psoriatic arthritis, and it's 00:17:55.579 --> 00:17:57.880 a key oral treatment, which contrasts with all 00:17:57.880 --> 00:18:00.500 the injectable biologics. oral dosing form gives 00:18:00.500 --> 00:18:03.319 it a major advantage. A huge advantage for patients 00:18:03.319 --> 00:18:06.119 hesitant to start injectable biologics. It often 00:18:06.119 --> 00:18:08.680 serves as a highly effective earlier line treatment. 00:18:09.119 --> 00:18:12.240 And critically, Amgen has continuously expanded 00:18:12.240 --> 00:18:14.640 its addressable market. They secured approval 00:18:14.640 --> 00:18:17.740 in 2021 for adults with plaque psoriasis of any 00:18:17.740 --> 00:18:19.940 severity level. Which massively increased the 00:18:19.940 --> 00:18:22.380 pool of potential users. Absolutely. And we must 00:18:22.380 --> 00:18:25.339 not overlook tepetza or tepertumumab. This was 00:18:25.339 --> 00:18:27.539 acquired via the Horizon Deal, and it's a highly 00:18:27.539 --> 00:18:29.740 specialized drug used for Graves' ophthalmopathy, 00:18:29.859 --> 00:18:31.779 a debilitating condition affecting the eyes. 00:18:32.039 --> 00:18:35.359 And it contributed $1 .8 billion in 2024 revenues. 00:18:35.680 --> 00:18:38.440 This showcases their move toward ultra -specialty, 00:18:38.500 --> 00:18:41.359 high -price, low -volume drugs, a strategic theme 00:18:41.359 --> 00:18:43.579 we'll definitely return to. That move feels very 00:18:43.579 --> 00:18:46.059 deliberate. Oh, it is. High -value rear - disease 00:18:46.059 --> 00:18:48.119 treatments often have more predictable revenue 00:18:48.119 --> 00:18:50.700 streams and are less susceptible to the intense 00:18:50.700 --> 00:18:52.759 price pressure faced by the high volume drugs. 00:18:53.039 --> 00:18:55.700 Let's pivot to cardiovascular and metabolism, 00:18:55.839 --> 00:18:58.880 a growing and highly competitive sector. Their 00:18:58.880 --> 00:19:02.579 major play here is Repatha or Evolucumab. Repatha 00:19:02.579 --> 00:19:05.599 is a treatment for hyperlipidemia or high cholesterol 00:19:05.599 --> 00:19:09.299 approved back in 2015. It brought in $2 .3 billion 00:19:09.299 --> 00:19:13.890 in 2024. It belongs to the PCSK9 inhibitor class, 00:19:14.150 --> 00:19:17.190 which works by dramatically lowering LDL or bad 00:19:17.190 --> 00:19:19.990 cholesterol. Which significantly reduces cardiovascular 00:19:19.990 --> 00:19:22.990 risk. But that $2 .3 billion market position 00:19:22.990 --> 00:19:25.650 is intensely contested, isn't it? Oh, fiercely. 00:19:25.809 --> 00:19:28.569 They're fighting rivals like Regeneron's Proluin 00:19:28.569 --> 00:19:30.970 and increasingly innovative RNA -based drugs 00:19:30.970 --> 00:19:33.789 like Novartis' Lecio. The competition in the 00:19:33.789 --> 00:19:36.730 PCSK9 space is just brutal, making Repatha's 00:19:36.730 --> 00:19:38.670 revenue stability a significant achievement. 00:19:39.150 --> 00:19:41.569 And that market tension is so high that it spills 00:19:41.569 --> 00:19:44.170 directly into the courtroom, a point that, as 00:19:44.170 --> 00:19:45.910 you mentioned, is crucial to understanding the 00:19:45.910 --> 00:19:48.230 company's operational risks later in our discussion. 00:19:48.430 --> 00:19:50.930 Absolutely. Finally, let's look at their core 00:19:50.930 --> 00:19:53.869 oncology and blood disorders portfolio, which 00:19:53.869 --> 00:19:56.670 builds directly on that epogen -nupogen heritage. 00:19:58.009 --> 00:20:01.130 Keprolis, a treatment for multiple myeloma, generated 00:20:01.130 --> 00:20:06.069 $1 .5 billion in 2024. Keprolis, or carfilzomib, 00:20:06.779 --> 00:20:10.339 is a proteasome inhibitor, a really key drug 00:20:10.339 --> 00:20:13.339 in that specific cancer treatment pathway. And 00:20:13.339 --> 00:20:16.579 Enplate, or Romiplastim, regulates platelet production, 00:20:16.859 --> 00:20:19.720 generating $1 .4 billion. Which relates directly 00:20:19.720 --> 00:20:22.400 back to their legacy in stimulating blood cell 00:20:22.400 --> 00:20:24.119 growth, just focusing on different components 00:20:24.119 --> 00:20:26.579 of the blood system. Exactly. And Aranesp, the 00:20:26.579 --> 00:20:29.500 second -generation EPO drug, is still a significant 00:20:29.500 --> 00:20:33.180 earner at $1 .3 billion in 2024, demonstrating 00:20:33.180 --> 00:20:35.740 the extreme longevity of a well -engineered biologic. 00:20:35.819 --> 00:20:37.829 This is amazing. And to compete across the entire 00:20:37.829 --> 00:20:40.990 market, Amgen employs this smart dual strategy, 00:20:41.210 --> 00:20:43.509 developing original blockbusters and manufacturing 00:20:43.509 --> 00:20:46.410 biosimilars. Their biosimilars, like Mivasi, 00:20:46.549 --> 00:20:49.269 Congenti, and Ryabni, they allow them to capture 00:20:49.269 --> 00:20:51.650 market share from other biologics whose patents 00:20:51.650 --> 00:20:54.690 have expired, providing lower -cost options and 00:20:54.690 --> 00:20:56.650 ensuring they have products spanning all price 00:20:56.650 --> 00:20:59.450 points. So in summary, Amgen's current financial 00:20:59.450 --> 00:21:03.269 engine is fueled by established high -value chronic 00:21:03.269 --> 00:21:06.009 disease management with Prolia and Enbrel, a 00:21:06.009 --> 00:21:08.369 strong presence in complex blood and cancer treatments, 00:21:08.609 --> 00:21:11.410 and a shrewd pivot toward high -growth, high 00:21:11.410 --> 00:21:14.009 -value, rare disease markets. It's a portfolio 00:21:14.009 --> 00:21:16.549 that demands continuous, aggressive, strategic 00:21:16.549 --> 00:21:19.349 maneuvers to maintain that size and profitability. 00:21:19.930 --> 00:21:22.170 The focus now is less on discovering the next 00:21:22.170 --> 00:21:25.509 EPO and more on strategically buying and building 00:21:25.509 --> 00:21:27.650 the next generation of specialized revenue streams. 00:21:27.910 --> 00:21:29.670 Which is the perfect transition into how they 00:21:29.670 --> 00:21:31.710 fuel that growth engine. Strategic acquisitions 00:21:31.710 --> 00:21:33.750 and infrastructure build out. Amgen's history 00:21:33.750 --> 00:21:37.029 confirms that internal R &D is really only half 00:21:37.029 --> 00:21:39.349 the story. Strategic acquisition has always been 00:21:39.349 --> 00:21:41.430 a core growth engine for them, allowing them 00:21:41.430 --> 00:21:44.049 to rapidly gain market access and bolster their 00:21:44.049 --> 00:21:46.789 pipeline. Historically, their moves were transformative. 00:21:47.420 --> 00:21:50.339 The 2002 acquisition of Immunix Corporation was 00:21:50.339 --> 00:21:54.279 just. It was epoch -making. It instantly brought 00:21:54.279 --> 00:21:56.839 them the blockbuster embryo and cemented their 00:21:56.839 --> 00:21:58.960 role in the inflammation market. And later, the 00:21:58.960 --> 00:22:01.880 Onyx Pharmaceuticals deal. Right. The 2013 acquisition 00:22:01.880 --> 00:22:05.039 of Onyx secured major oncology assets. But if 00:22:05.039 --> 00:22:07.180 we look at their recent activity. There's a distinct 00:22:07.180 --> 00:22:10.119 high -stakes shift. How so? The strategy is hyper 00:22:10.119 --> 00:22:12.980 -focused on securing specialized assets, often 00:22:12.980 --> 00:22:16.319 for rare or highly complex diseases. This helps 00:22:16.319 --> 00:22:19.319 diversify their risk and, crucially, provides 00:22:19.319 --> 00:22:21.619 some insulation from payer and pharmacy benefit 00:22:21.619 --> 00:22:24.759 manager or PBM pressure that often targets those 00:22:24.759 --> 00:22:27.019 high -volume chronic drugs. And the recent deals 00:22:27.019 --> 00:22:29.180 are just massive. They're very telling of this 00:22:29.180 --> 00:22:31.799 strategic pivot. Take Chemocentrics in 2022, 00:22:32.099 --> 00:22:35.299 acquired for $3 .7 billion cash. This was purely 00:22:35.299 --> 00:22:38.240 focused on rare diseases, adding Tavneos or Evacopin. 00:22:38.440 --> 00:22:41.200 It's a drug to treat antineutrophil cytoplasmic 00:22:41.200 --> 00:22:44.279 autoantibody -associated vasculitis. A mouthful, 00:22:44.279 --> 00:22:46.180 I know, but a very serious, specific autoimmune 00:22:46.180 --> 00:22:49.970 condition. Paying $3 .7 billion for a drug that 00:22:49.970 --> 00:22:54.309 treats such a specific, rare disease really demonstrates 00:22:54.309 --> 00:22:56.789 the economic calculus at play, doesn't it? Absolutely. 00:22:57.029 --> 00:22:59.130 These treatments, while having fewer patients, 00:22:59.349 --> 00:23:01.710 command extremely high prices, leading to more 00:23:01.710 --> 00:23:03.430 predictable revenues that are less threatened 00:23:03.430 --> 00:23:06.049 by generics or broad PBM exclusion lists. And 00:23:06.049 --> 00:23:08.839 then the absolute monster of a deal. Horizon 00:23:08.839 --> 00:23:12.880 Therapeutics acquired in 2023 for $27 .8 billion. 00:23:13.420 --> 00:23:16.440 Yeah. Horizon specializes entirely in rare diseases, 00:23:16.720 --> 00:23:19.420 bringing into PETSA, that Graves' ophthalmopathy 00:23:19.420 --> 00:23:21.220 drug, and several other specialty treatments. 00:23:21.400 --> 00:23:23.220 And it's crucial to pause on Horizon's corporate 00:23:23.220 --> 00:23:26.049 structure here. as noted in the sources horizon 00:23:26.049 --> 00:23:28.170 was originally incorporated in ireland back in 00:23:28.170 --> 00:23:30.990 2014 through a tax inversion so by acquiring 00:23:30.990 --> 00:23:33.309 a company structured that way amgen is willing 00:23:33.309 --> 00:23:35.710 to navigate some pretty complex international 00:23:35.710 --> 00:23:38.549 corporate and tax frameworks to secure these 00:23:38.549 --> 00:23:41.450 highly valuable rare disease assets the 27 .8 00:23:41.450 --> 00:23:43.789 billion dollar price tag confirms that specialized 00:23:43.789 --> 00:23:46.430 market access is now their highest priority growth 00:23:46.430 --> 00:23:48.730 factor we also saw the acquisition of five prime 00:23:48.730 --> 00:23:51.630 therapeutics in 2021 for 1 .9 billion dollars 00:23:51.630 --> 00:23:54.180 right and this was a very targeted acquisition 00:23:54.180 --> 00:23:57.500 specifically aimed at enhancing their Asia -Pacific 00:23:57.500 --> 00:24:00.500 oncology market share. It added the lead candidate, 00:24:00.640 --> 00:24:03.420 B. marituzumab. So it shows a simultaneous focus 00:24:03.420 --> 00:24:06.000 on rare disease consolidation in the West and 00:24:06.000 --> 00:24:08.539 targeted pipeline expansion in high growth international 00:24:08.539 --> 00:24:11.180 regions. The acquisition strategy is layered. 00:24:11.559 --> 00:24:14.480 Domestic rare disease consolidation, massive 00:24:14.480 --> 00:24:17.039 international rare disease expansion, and targeted 00:24:17.039 --> 00:24:19.940 geographic pipeline boosts. But growth isn't 00:24:19.940 --> 00:24:22.950 just about buying. Amgen actively builds. They 00:24:22.950 --> 00:24:25.450 are continuously expanding their high -tech manufacturing 00:24:25.450 --> 00:24:28.329 and R &D facilities all over the globe. Which 00:24:28.329 --> 00:24:30.430 shows a deep commitment to controlling the complex 00:24:30.430 --> 00:24:33.250 production process for biologics end -to -end. 00:24:33.369 --> 00:24:36.009 Their global footprint is robust. They completed 00:24:36.009 --> 00:24:38.289 a next -generation biomanufacturing facility 00:24:38.289 --> 00:24:41.599 in Singapore in 2014. and expanded infrastructure 00:24:41.599 --> 00:24:44.039 in West Greenwich, Rhode Island, starting in 00:24:44.039 --> 00:24:46.980 2018. More recently, we see this massive commitment 00:24:46.980 --> 00:24:49.339 to domestic manufacturing and security and supply 00:24:49.339 --> 00:24:52.480 chain resiliency, particularly post -COVID. They 00:24:52.480 --> 00:24:54.380 broke ground on a new high -tech facility in 00:24:54.380 --> 00:24:57.180 Holly Springs, North Carolina, in 2022. And the 00:24:57.180 --> 00:24:59.700 future investment figures are telling. In April 00:24:59.700 --> 00:25:02.720 2025, they announced a $900 million expansion 00:25:02.720 --> 00:25:05.579 of their facility in New Albany, Ohio. Which 00:25:05.579 --> 00:25:08.079 is expected to nearly double job creation there. 00:25:08.200 --> 00:25:11.009 And they aren't neglecting their roots. In September 00:25:11.009 --> 00:25:14.190 2025, plans were announced for a $600 million 00:25:14.190 --> 00:25:16.589 research center in Thousand Oaks, California. 00:25:16.869 --> 00:25:20.029 And why spend $1 .5 billion combined on Ohio 00:25:20.029 --> 00:25:22.910 manufacturing and California research? Because 00:25:22.910 --> 00:25:25.849 manufacturing biologics is intensely complex 00:25:25.849 --> 00:25:29.059 and specialized. This spending ensures they have 00:25:29.059 --> 00:25:31.680 redundant, specialized capacity for new product 00:25:31.680 --> 00:25:34.000 launches. It secures their supply chain against 00:25:34.000 --> 00:25:36.960 global geopolitical instability, and it reinvests 00:25:36.960 --> 00:25:38.880 in the pure discovery engine right at headquarters. 00:25:39.240 --> 00:25:41.400 That kind of internal spending really underscores 00:25:41.400 --> 00:25:43.599 that acquisitions are necessary, but they still 00:25:43.599 --> 00:25:45.480 view controlling, cutting edge manufacturing 00:25:45.480 --> 00:25:48.640 and internal discovery as non -negotiable strategic 00:25:48.640 --> 00:25:50.420 pillars. And their global commercial commitment 00:25:50.420 --> 00:25:53.099 is cemented by affiliate expansion in key markets. 00:25:53.359 --> 00:25:55.880 They opened their China affiliate in 2013 and 00:25:55.880 --> 00:25:58.940 established Amgen. KK as a wholly owned affiliate 00:25:58.940 --> 00:26:02.259 in Japan in April 2020. Taking full control of 00:26:02.259 --> 00:26:05.609 their Japanese presence. Exactly. Asia is clearly 00:26:05.609 --> 00:26:08.390 baked in to their long -term growth forecast. 00:26:08.670 --> 00:26:10.630 So this whole strategic growth section paints 00:26:10.630 --> 00:26:13.289 a picture of a dynamic, aggressive, and highly 00:26:13.289 --> 00:26:16.329 capitalized company that uses both its checkbook 00:26:16.329 --> 00:26:19.150 and its construction crews to secure its future 00:26:19.150 --> 00:26:21.390 position. They buy the best assets, and they 00:26:21.390 --> 00:26:23.589 ensure they have the physical specialized capacity 00:26:23.589 --> 00:26:26.650 worldwide to produce and distribute them efficiently. 00:26:26.950 --> 00:26:29.250 Now let's turn our attention to the cutting edge. 00:26:29.740 --> 00:26:31.759 What are they betting on for the next generation 00:26:31.759 --> 00:26:34.740 of blockbusters? And what new science are they 00:26:34.740 --> 00:26:38.180 chasing? When we talk about future bets, we first 00:26:38.180 --> 00:26:41.400 need to just grasp the sheer scope of their current 00:26:41.400 --> 00:26:44.480 research pipeline. They currently have 17 clinical 00:26:44.480 --> 00:26:47.180 programs in phase three. Eight in phase two and 00:26:47.180 --> 00:26:50.359 19 in phase one. That volume 44 active programs 00:26:50.359 --> 00:26:53.200 across all phases, that's the cost of doing business 00:26:53.200 --> 00:26:55.700 in biopharma. It provides the necessary diversification 00:26:55.700 --> 00:26:58.119 to hedge against the high attrition rate that's 00:26:58.119 --> 00:27:00.119 just inherent in clinical development. They're 00:27:00.119 --> 00:27:02.740 casting a wide multi -billion dollar net. Let's 00:27:02.740 --> 00:27:04.940 zoom in on a few specific programs, starting 00:27:04.940 --> 00:27:06.940 with a breakthrough that defined Imgen the capacity 00:27:06.940 --> 00:27:10.480 to solve historically undruggable problems. The 00:27:10.480 --> 00:27:14.950 KRAS -G12C breakthrough with Lumacras or So Torsib? 00:27:15.150 --> 00:27:18.410 This development is arguably one of those exciting 00:27:18.410 --> 00:27:21.670 recent milestones in targeted oncology. The KRAS 00:27:21.670 --> 00:27:24.049 protein is mutated in a massive percentage of 00:27:24.049 --> 00:27:26.650 human cancers. And for the last 40 years, it 00:27:26.650 --> 00:27:29.150 was considered a holy grail. It was untouchable 00:27:29.150 --> 00:27:31.569 by traditional small molecules. Why was it considered 00:27:31.569 --> 00:27:33.730 impossible to drug? Well, it was a technical 00:27:33.730 --> 00:27:36.769 hurdle. KRAS is structurally very smooth. It 00:27:36.769 --> 00:27:39.470 lacks a suitable deep binding pocket where a 00:27:39.470 --> 00:27:41.609 traditional small molecule drug could latch on 00:27:41.609 --> 00:27:43.349 and interfere with its function. It's like trying 00:27:43.349 --> 00:27:45.390 to grab a billiard ball. Exactly. It's like trying 00:27:45.390 --> 00:27:47.789 to stop a billiard ball with a tiny key. You 00:27:47.789 --> 00:27:50.369 need a very specific, unique mechanism. Amgen 00:27:50.369 --> 00:27:52.809 Sotorizib found a temporary transient pocket 00:27:52.809 --> 00:27:55.990 specific to the G12C mutation, and that effectively 00:27:55.990 --> 00:27:58.569 drugged the undruggable. And Sotorizib broke 00:27:58.569 --> 00:28:01.130 that barrier. It was granted fast -track designation 00:28:01.130 --> 00:28:04.039 in 2019 and received accelerated FD... approval 00:28:04.039 --> 00:28:07.420 in May 2021 for NSCLC patients with that specific 00:28:07.420 --> 00:28:10.660 KRAS mutation. Which was the first approved targeted 00:28:10.660 --> 00:28:14.099 therapy for any KRAS mutation. That first -in 00:28:14.099 --> 00:28:16.640 -class status is a major scientific validation. 00:28:17.039 --> 00:28:19.819 And the clinical outcomes followed. A September 00:28:19.819 --> 00:28:23.000 2022 late -stage study showed that Lumacra has 00:28:23.000 --> 00:28:25.420 actually beat standard chemotherapy in trials, 00:28:25.559 --> 00:28:28.059 which is the gold standard proof of efficacy 00:28:28.059 --> 00:28:30.569 in cancer treatment. It provides a superior, 00:28:30.730 --> 00:28:32.769 more targeted option for a patient population 00:28:32.769 --> 00:28:35.809 that previously had very few choices. And reflecting 00:28:35.809 --> 00:28:38.250 that complexity and innovation, the list price 00:28:38.250 --> 00:28:41.910 was noted at $17 ,900 per month upon approval. 00:28:42.150 --> 00:28:44.930 Yeah, which underscores the high investment required 00:28:44.930 --> 00:28:48.069 to solve problems that decades of research just 00:28:48.069 --> 00:28:50.369 couldn't crack. Okay, moving on, let's look at 00:28:50.369 --> 00:28:53.210 their collaboration with AstraZeneca on Tespire, 00:28:53.329 --> 00:28:55.809 or tezopilumab, which is focused on severe asthma 00:28:55.809 --> 00:28:58.900 and sinusitis. TestBio received FDA approval 00:28:58.900 --> 00:29:02.900 in December 2021 for severe asthma. It's a mechanism 00:29:02.900 --> 00:29:05.960 that targets the TSLP pathway, which sits upstream 00:29:05.960 --> 00:29:08.380 of many other inflammation pathways. Which means 00:29:08.380 --> 00:29:10.339 it potentially addresses a wider range of the 00:29:10.339 --> 00:29:12.640 underlying causes of severe asthma than existing 00:29:12.640 --> 00:29:15.299 biologics. Exactly. And its market potential 00:29:15.299 --> 00:29:18.009 is expanding rapidly beyond asthma. Positive 00:29:18.009 --> 00:29:21.109 data from March 2025 showed best -in -class results 00:29:21.109 --> 00:29:24.309 for treating chronic rhinosinusitis with nasal 00:29:24.309 --> 00:29:27.170 polyps. So it could establish a best -in -disease 00:29:27.170 --> 00:29:29.869 profile across multiple inflammatory diseases 00:29:29.869 --> 00:29:32.230 of the airway. Potentially turning it into a 00:29:32.230 --> 00:29:34.960 multi -indication platform drug. That versatility 00:29:34.960 --> 00:29:37.680 is crucial for fueling billion -dollar growth. 00:29:38.079 --> 00:29:40.319 But if we're talking about market potential and 00:29:40.319 --> 00:29:43.660 headlines, we have to talk about Meritide, the 00:29:43.660 --> 00:29:46.500 high -stakes anti -obesity candidate. The race 00:29:46.500 --> 00:29:48.839 in the cardiometabolic and anti -obesity market 00:29:48.839 --> 00:29:51.460 is the single biggest narrative in biopharma 00:29:51.460 --> 00:29:54.640 right now. And Amgen is fielding a highly differentiated 00:29:54.640 --> 00:29:57.799 contender with Meritide. Their focus is on differentiating 00:29:57.799 --> 00:30:00.220 on convenience and efficacy. And the key differentiator 00:30:00.220 --> 00:30:02.299 for Meritide is the dosing schedule, right? It's 00:30:02.299 --> 00:30:04.380 administered once per month. by injection. Which 00:30:04.380 --> 00:30:06.700 is a massive convenience advantage compared to 00:30:06.700 --> 00:30:08.420 the current market leaders that require weekly 00:30:08.420 --> 00:30:11.059 injections. Late -stage trials began in March 00:30:11.059 --> 00:30:13.980 2025, putting Amgen in a strong competitive position. 00:30:14.299 --> 00:30:17.019 However, this therapeutic area is notorious for 00:30:17.019 --> 00:30:19.359 side effects, and Amgen hit that wall early. 00:30:19.789 --> 00:30:23.950 Yes, the dosage challenge. In June 2025, they 00:30:23.950 --> 00:30:26.049 announced they had to reduce the dosage of the 00:30:26.049 --> 00:30:29.329 drug in ongoing trials to limit gastrointestinal 00:30:29.329 --> 00:30:32.109 side effects, predominantly vomiting. Which is 00:30:32.109 --> 00:30:34.230 the primary hurdle for patient retention in the 00:30:34.230 --> 00:30:36.750 whole GLP -1 class. But here's a critical data 00:30:36.750 --> 00:30:39.029 point that keeps the market incredibly excited. 00:30:39.660 --> 00:30:42.339 Despite requiring a dosage reduction, patients 00:30:42.339 --> 00:30:45.000 who continued taking the drug still lost approximately 00:30:45.000 --> 00:30:47.680 20 % of their body weight. Which puts Meritide 00:30:47.680 --> 00:30:50.519 squarely in that highly competitive 15 % to 22 00:30:50.519 --> 00:30:53.799 % weight loss range achieved by the current injectable 00:30:53.799 --> 00:30:56.599 market leaders. So if Amgen can finalize a monthly 00:30:56.599 --> 00:30:59.079 dose that manages the side effects while retaining 00:30:59.079 --> 00:31:01.900 that 20 % efficacy... The convenience factor 00:31:01.900 --> 00:31:05.240 alone. could make Meritide a dominant force and 00:31:05.240 --> 00:31:07.700 easily a multi -billion dollar product. That 00:31:07.700 --> 00:31:10.519 potential is absolutely transformative. Finally, 00:31:10.559 --> 00:31:12.519 let's look at their innovative R &D collaborations. 00:31:13.019 --> 00:31:15.480 These show they are actively pursuing the next 00:31:15.480 --> 00:31:18.019 three major waves of drug discovery outside of 00:31:18.019 --> 00:31:20.519 their traditional recombinant platform. The integration 00:31:20.519 --> 00:31:23.190 of artificial intelligence is key. The November 00:31:23.190 --> 00:31:26.369 2023 partnership with Amazon Web Services, AWS, 00:31:26.829 --> 00:31:29.410 is important because they're using generative 00:31:29.410 --> 00:31:32.289 AI and machine learning, not just for discovering 00:31:32.289 --> 00:31:35.490 new drug candidates. But also critically for 00:31:35.490 --> 00:31:38.130 optimizing their highly specialized biologic 00:31:38.130 --> 00:31:40.430 manufacturing process. And that manufacturing 00:31:40.430 --> 00:31:43.420 optimization is often overlooked. AI can help 00:31:43.420 --> 00:31:46.279 predict yields, reduce batch failures, and optimize 00:31:46.279 --> 00:31:48.940 complex purification steps, leading to significant 00:31:48.940 --> 00:31:51.660 cost savings and improved supply reliability 00:31:51.660 --> 00:31:55.740 for these $33 billion in revenue products. Beyond 00:31:55.740 --> 00:31:58.599 AI, they are deeply invested in next -generation 00:31:58.599 --> 00:32:00.720 therapeutics. They have a massive collaboration 00:32:00.720 --> 00:32:03.359 with Generate Biomedicines, potentially worth 00:32:03.359 --> 00:32:06.500 up to $1 .9 billion. Focused on multispecific 00:32:06.500 --> 00:32:09.099 drugs. What are those? Multispecifics are molecules, 00:32:09.440 --> 00:32:11.880 often large proteins, designed to simultaneously... 00:32:11.880 --> 00:32:13.640 bind to and influence two or more biological 00:32:13.640 --> 00:32:15.980 targets. Instead of a drug hitting target A, 00:32:16.079 --> 00:32:17.839 you have one drug hitting target A and target 00:32:17.839 --> 00:32:20.440 B. Potentially creating a much more powerful 00:32:20.440 --> 00:32:22.920 synergistic effect and reducing the likelihood 00:32:22.920 --> 00:32:26.000 of resistance. Exactly. And they are exploring 00:32:26.000 --> 00:32:28.640 other novel targeting methods. Collaborations 00:32:28.640 --> 00:32:30.720 with Arrakis Therapeutics for novel targeted 00:32:30.720 --> 00:32:34.000 RNA degrader therapeutics and Plexium for targeted 00:32:34.000 --> 00:32:36.099 protein degradation therapies. These are the 00:32:36.099 --> 00:32:38.900 bleeding edge of science. Oh, absolutely. RNA 00:32:38.900 --> 00:32:42.279 degraders aim to destroy the messenger RNA, the 00:32:42.279 --> 00:32:44.960 mRNA that carries the instructions for making 00:32:44.960 --> 00:32:47.680 a harmful protein. It's like preventing the factory 00:32:47.680 --> 00:32:49.940 from ever receiving the blueprint. And targeted 00:32:49.940 --> 00:32:52.400 protein degradation. That uses the cell's own 00:32:52.400 --> 00:32:55.259 internal waste disposal machinery to label and 00:32:55.259 --> 00:32:57.700 destroy disease -causing proteins that have already 00:32:57.700 --> 00:33:00.680 been made. So Amgen is not resting on its history 00:33:00.680 --> 00:33:03.680 of cloning DNA. They are actively pursuing AI 00:33:03.680 --> 00:33:06.660 -driven design, multi -target drugs, and sophisticated 00:33:06.660 --> 00:33:09.579 internal destruction pathways, the technologies 00:33:09.579 --> 00:33:12.160 that will define biopharma for the next few decades. 00:33:12.460 --> 00:33:15.519 That robust pipeline strategy confirms they intend 00:33:15.519 --> 00:33:17.460 to remain a cutting -edge scientific leader. 00:33:17.789 --> 00:33:19.829 Now let's shift gears and look at the company's 00:33:19.829 --> 00:33:22.250 broader corporate responsibilities, including 00:33:22.250 --> 00:33:24.970 their significant philanthropic work and the 00:33:24.970 --> 00:33:27.809 inevitable and costly legal scrutiny that comes 00:33:27.809 --> 00:33:31.089 with operating at this staggering scale. A company 00:33:31.089 --> 00:33:33.769 of Amgen's stature has a huge societal impact 00:33:33.769 --> 00:33:36.769 that extends far beyond drug sales, particularly 00:33:36.769 --> 00:33:39.349 through the Amgen Foundation, which has a very 00:33:39.349 --> 00:33:41.910 targeted focus on science education. That focus 00:33:41.910 --> 00:33:43.930 makes perfect sense given their history as a 00:33:43.930 --> 00:33:46.099 science -first company. They see investing in 00:33:46.099 --> 00:33:48.460 the next generation of scientists as a core part 00:33:48.460 --> 00:33:50.960 of their mission. Right. They pledged $3 million 00:33:50.960 --> 00:33:55.359 in 2017 and another $3 million in 2020 to Khan 00:33:55.359 --> 00:33:57.880 Academy specifically to support the development 00:33:57.880 --> 00:34:01.259 of free online biology lessons, promoting educational 00:34:01.259 --> 00:34:03.759 equity globally. That's a direct investment in 00:34:03.759 --> 00:34:05.740 global scientific literacy. They also partnered 00:34:05.740 --> 00:34:08.559 with Harvard University in January 2020 to debut 00:34:08.559 --> 00:34:11.320 LabExchange. A free online science education 00:34:11.320 --> 00:34:14.239 platform offering virtual labs and complex simulations. 00:34:14.320 --> 00:34:17.059 These programs are crucial because they democratize 00:34:17.059 --> 00:34:19.719 access to high quality science education, which 00:34:19.719 --> 00:34:22.139 is otherwise often restricted by geography or 00:34:22.139 --> 00:34:25.019 cost. And the foundation also demonstrated rapid 00:34:25.019 --> 00:34:27.079 responsiveness during the COVID -19 pandemic. 00:34:27.460 --> 00:34:30.840 Committing up to $12 .5 million for relief efforts 00:34:30.840 --> 00:34:33.659 in March 2020. And in terms of patient advocacy, 00:34:34.099 --> 00:34:37.300 they provided a $2 million grant to the CDC Foundation 00:34:37.300 --> 00:34:40.480 in 2021 to launch the Empowered Health Program. 00:34:40.780 --> 00:34:42.920 Which focuses on promoting patient engagement 00:34:42.920 --> 00:34:45.949 in cancer. treatment decision -making. That demonstrates 00:34:45.949 --> 00:34:48.210 a recognition of the importance of informed consent 00:34:48.210 --> 00:34:51.269 and patient autonomy in these complex care pathways. 00:34:51.510 --> 00:34:53.630 Beyond the foundation, they engage in typical 00:34:53.630 --> 00:34:56.110 corporate branding efforts, like securing the 00:34:56.110 --> 00:34:58.130 title sponsorship of the Irish Open in golf, 00:34:58.389 --> 00:35:01.849 rebranding it the Amgen Irish Open in late 2023. 00:35:02.349 --> 00:35:04.510 Maintaining global visibility across different 00:35:04.510 --> 00:35:06.550 demographics. Now let's address their political 00:35:06.550 --> 00:35:09.349 engagement. Lobbying is, I mean, it's an absolute 00:35:09.349 --> 00:35:11.630 necessity for any company operating in a highly 00:35:11.630 --> 00:35:14.289 regulated, high -stakes sector like biopharma. 00:35:14.380 --> 00:35:16.519 Our sources indicate that Amgen spends approximately 00:35:16.519 --> 00:35:19.480 $10 million per year on lobbying in the United 00:35:19.480 --> 00:35:22.280 States. That figure reflects the intense and 00:35:22.280 --> 00:35:24.480 continuous nature of legislative and regulatory 00:35:24.480 --> 00:35:27.039 battles, particularly concerning drug pricing, 00:35:27.239 --> 00:35:28.920 reimbursement, and of course, patent protection. 00:35:29.519 --> 00:35:32.500 And maintaining strict impartiality here, we 00:35:32.500 --> 00:35:34.219 just note that their political contributions 00:35:34.219 --> 00:35:36.480 have been mostly directed toward individuals 00:35:36.480 --> 00:35:38.559 and organizations associated with the Democratic 00:35:38.559 --> 00:35:41.420 Party. This is simply a reporting of the data 00:35:41.420 --> 00:35:44.179 available on their political activities. It demonstrates 00:35:44.179 --> 00:35:47.440 their necessity to engage across the political 00:35:47.440 --> 00:35:50.699 landscape to manage regulatory risk. For sure. 00:35:50.860 --> 00:35:53.960 But the complexity of their operation is never 00:35:53.960 --> 00:35:56.599 clearer than when we juxtapose their scientific 00:35:56.599 --> 00:36:00.460 achievements with their corporate. It's jarring, 00:36:00.480 --> 00:36:03.079 isn't it? To see a company spending nearly $28 00:36:03.079 --> 00:36:06.719 billion to acquire assets and investing hundreds 00:36:06.719 --> 00:36:09.280 of millions in groundbreaking research while 00:36:09.280 --> 00:36:11.900 simultaneously paying huge fines for illegal 00:36:11.900 --> 00:36:14.579 marketing tactics. How do we reconcile that complexity? 00:36:15.019 --> 00:36:16.820 It's the tension between the scientific mission 00:36:16.820 --> 00:36:19.059 and the commercial imperative, and the legal 00:36:19.059 --> 00:36:22.179 system often steps in when the latter overrides 00:36:22.179 --> 00:36:24.820 the former. And we have two significant legal 00:36:24.820 --> 00:36:27.360 issues we must detail. Let's start with the older 00:36:27.360 --> 00:36:30.320 but very serious case involving Aronisp, that 00:36:30.320 --> 00:36:33.599 second -generation EPO drug. In December 2012, 00:36:34.019 --> 00:36:36.320 Amgen pleaded guilty and agreed to a massive 00:36:36.320 --> 00:36:38.840 settlement for improper marketing. The settlement 00:36:38.840 --> 00:36:43.320 was staggering, $762 million. It was broken down 00:36:43.320 --> 00:36:47.179 into a $150 million criminal penalty and a $612 00:36:47.179 --> 00:36:50.369 million civil resolution. But what's crucial 00:36:50.369 --> 00:36:53.230 here is how the improper marketing occurred and 00:36:53.230 --> 00:36:55.719 why it was so problematic. The source material 00:36:55.719 --> 00:36:59.400 indicates that the case resolved 11 related whistleblower 00:36:59.400 --> 00:37:01.880 complaints. According to the Department of Justice, 00:37:02.260 --> 00:37:04.639 Amgen was promoting and selling the drug for 00:37:04.639 --> 00:37:07.739 off -label uses, so uses not approved by the 00:37:07.739 --> 00:37:11.519 FDA, at dosages that the FDA had explicitly rejected 00:37:11.519 --> 00:37:14.760 or never approved. And that detail is the critical 00:37:14.760 --> 00:37:17.320 lesson in corporate governance. When a company 00:37:17.320 --> 00:37:19.360 promotes dosages that regulatory bodies have 00:37:19.360 --> 00:37:22.059 deemed unsafe or ineffective, or attempts to 00:37:22.059 --> 00:37:24.340 expand indications outside of what has been clinical, 00:37:24.360 --> 00:37:26.920 proven, they cross a major ethical and legal 00:37:26.920 --> 00:37:28.739 line. And the whistleblowers brought it to light. 00:37:28.840 --> 00:37:30.639 Right, who were often company insiders. They 00:37:30.639 --> 00:37:32.800 brought this serious misconduct to light, which 00:37:32.800 --> 00:37:34.679 led to that massive financial accountability. 00:37:35.039 --> 00:37:37.659 That's a stark reminder that even the most scientifically 00:37:37.659 --> 00:37:40.460 advanced companies are subject to, well, human 00:37:40.460 --> 00:37:42.599 greed and ethical failures in the pursuit of 00:37:42.599 --> 00:37:44.980 revenue maximization. And the legal challenges 00:37:44.980 --> 00:37:47.840 continue in the modern era, shifting from marketing 00:37:47.840 --> 00:37:51.900 practices to intense antitrust issues. This brings 00:37:51.900 --> 00:37:54.639 us right back to Repatha, their $2 .3 billion 00:37:54.639 --> 00:37:57.599 cholesterol drug. This issue is very recent. 00:37:57.719 --> 00:38:01.659 In May 2025, a jury ruled that Amgen owes Regeneron 00:38:01.659 --> 00:38:05.800 $406 million. Why? For engaging in anti -competitive 00:38:05.800 --> 00:38:08.539 practices to increase sales of Repatha at the 00:38:08.539 --> 00:38:11.460 expense of Regeneron's competing drug, Proliment. 00:38:11.659 --> 00:38:13.980 And this antitrust ruling is highly instructive 00:38:13.980 --> 00:38:16.800 about market conduct. It is. The issue centered 00:38:16.800 --> 00:38:18.980 on whether Amgen used its dominant position, 00:38:19.260 --> 00:38:22.019 likely through exclusionary contracts or rebates 00:38:22.019 --> 00:38:24.300 with the major U .S. distribution channels, perhaps 00:38:24.300 --> 00:38:26.159 even those three wholesalers we discussed earlier, 00:38:26.340 --> 00:38:28.619 to essentially block Perluent from competing 00:38:28.619 --> 00:38:30.769 effectively in the market. So the argument is 00:38:30.769 --> 00:38:33.369 that Amgen's commercial tactics went beyond normal 00:38:33.369 --> 00:38:35.710 competition and actively stifled the market, 00:38:35.809 --> 00:38:38.530 resulting in a huge financial penalty. It demonstrates 00:38:38.530 --> 00:38:41.110 that maintaining market dominance requires constant 00:38:41.110 --> 00:38:43.409 vigilance against monopolistic behavior charges. 00:38:43.650 --> 00:38:45.929 The narrative of Amgen is therefore defined by 00:38:45.929 --> 00:38:48.230 high achievement and high accountability. They're 00:38:48.230 --> 00:38:50.510 solving undruggable cancers and funding vast 00:38:50.510 --> 00:38:53.250 educational resources, but you're also paying 00:38:53.250 --> 00:38:56.190 hundreds of millions in penalties for both marketing 00:38:56.190 --> 00:38:58.909 misuse and anti -competitive market tactics. 00:38:59.239 --> 00:39:02.280 highly lucrative arenas. That complexity, the 00:39:02.280 --> 00:39:04.800 high highs and the low lows, is the enduring 00:39:04.800 --> 00:39:08.750 reality of being a modern biotech giant. If we 00:39:08.750 --> 00:39:11.010 synthesize this journey, we have traveled from 00:39:11.010 --> 00:39:13.750 Amgen, starting as the small venture -backed 00:39:13.750 --> 00:39:16.670 startup in 1980, dedicated to cloning the DNA 00:39:16.670 --> 00:39:20.150 of complex human proteins, to a global multi 00:39:20.150 --> 00:39:22.829 -trillion dollar market participant defined by 00:39:22.829 --> 00:39:25.190 scale and strategic aggression. They define the 00:39:25.190 --> 00:39:27.650 entire early life cycle of biotechnology with 00:39:27.650 --> 00:39:30.210 foundational blockbusters like Apigen and Neupogen, 00:39:30.429 --> 00:39:33.010 built massive market dominance in chronic care 00:39:33.010 --> 00:39:35.630 with products like Prolia and Embrel, and are 00:39:35.630 --> 00:39:37.610 now pivoting strategically into the rare disease. 00:39:37.769 --> 00:39:40.670 market with acquisitions like that $27 .8 billion 00:39:40.670 --> 00:39:43.510 purchase of Horizon Therapeutics. And they are 00:39:43.510 --> 00:39:45.769 betting massive sums on the future, too, with 00:39:45.769 --> 00:39:47.929 candidates like Maritide in the high -stakes 00:39:47.929 --> 00:39:50.449 anti -obesity markets and pioneering the integration 00:39:50.449 --> 00:39:53.769 of generative AI into both drug discovery and 00:39:53.769 --> 00:39:56.269 manufacturing optimization. Amgen's operational 00:39:56.269 --> 00:39:59.289 identity is ultimately defined by a dynamic balance. 00:40:00.170 --> 00:40:02.809 unmatched scientific achievement, aggressive 00:40:02.809 --> 00:40:05.849 commercial growth, and this continuous navigation 00:40:05.849 --> 00:40:08.230 of high -stakes legal and ethical environments, 00:40:08.489 --> 00:40:11.210 illustrated so vividly by both the Ernest Marketing 00:40:11.210 --> 00:40:14.269 Settlement and the recent Repatha antitrust ruling. 00:40:14.670 --> 00:40:16.969 Their history is synonymous with the entire evolution 00:40:16.969 --> 00:40:19.409 of the biotech industry. So what does this all 00:40:19.409 --> 00:40:21.489 mean for you, the listener? We've seen Amgen 00:40:21.489 --> 00:40:23.389 achieve its first and most enduring successes 00:40:23.389 --> 00:40:25.949 through the revolutionary science of recombinant 00:40:25.949 --> 00:40:29.949 DNA, the genetic cloning of EPO and GCSF. They 00:40:29.949 --> 00:40:32.329 are now investing heavily in AI integration and 00:40:32.329 --> 00:40:34.570 new modalities like targeted protein degradation 00:40:34.570 --> 00:40:37.329 and RNA degraders. Which raises an important 00:40:37.329 --> 00:40:39.269 and I think a provocative question for you to 00:40:39.269 --> 00:40:43.449 mull over. Given that Amgen defined its first 00:40:43.449 --> 00:40:46.369 era on DNA and is now chasing the future with 00:40:46.369 --> 00:40:49.429 AI and degradation technology, what technological 00:40:49.429 --> 00:40:52.010 foundation will it be AI -driven design, the 00:40:52.010 --> 00:40:54.409 specificity of targeted degradation, or maybe 00:40:54.409 --> 00:40:56.510 even just the monthly convenience of a drug like 00:40:56.510 --> 00:40:59.289 Maritide? What will be responsible for defining 00:40:59.289 --> 00:41:02.030 the next $10 billion blockbuster drug in the 00:41:02.030 --> 00:41:03.929 biopharma industry? Something to think about 00:41:03.929 --> 00:41:06.090 long after we sign off. Thank you for joining 00:41:06.090 --> 00:41:08.030 us for this deep dive into Amgen, Inc. We hope 00:41:08.030 --> 00:41:10.070 you feel thoroughly informed. Until next time.