Amgen recently announced a significant $900 million expansion in its Ohio manufacturing facility, aiming to strengthen its biomanufacturing capabilities. This investment is part of a strategic focus on enhancing U.S. manufacturing, alongside its $1 billion commitment to a new plant in North Carolina. Over the past quarter, Amgen's stock price moved by 2%, while the broader market increased by 8%. Although the company's investment plans signal long-term growth, this moderate movement in its share price suggests these developments added weight against broader market trends buoying returns.

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Amgen's recent US$900 million expansion in Ohio and the ongoing US$1 billion project in North Carolina could influence Amgen's global manufacturing strategy, potentially leading to enhanced biomanufacturing capabilities. Over the past five years, Amgen's total return, including dividends, was 41.78% despite recent challenges with drug pricing and patent expirations. In the past year, however, Amgen underperformed the broader U.S. market, which saw a 7.7% increase.

This expansion could bolster revenue and earnings, aligning with Amgen's focus on biopharmaceutical growth. However, the expected decline in Repatha pricing and potential revenue pressure from loss of patent exclusivity present hurdles. Amgen's current share price shows a slight discount, approximately 12% below consensus analyst price targets, creating a framework for potential future gains if operational improvements materialize. While the current price of US$291.09 is below various analyst expectations, the market continues to evaluate the company's growth prospects against broader industry trends.

Gain insights into Amgen's past trends and performance with our report on the company's historical track record.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:AMGN.

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