An increasing number of businesses are turning to Amazon Web Services (AWS) for a range of features that help them accomplish many tasks. It’s no different for biotech stock Amgen (NASDAQ:AMGN), which recently brought in AWS to help develop a range of new treatments. The move was sufficient to give investors a bit of extra confidence, and they sent Amgen shares up fractionally in Tuesday afternoon’s trading.
The new partnership calls for Amgen to put AWS’ infrastructure tools—as well as its technical support—to use for advanced assembly and final product packaging at a facility in the Columbus, Ohio, area. That facility deals with several Amgen developments, including Enbrel, an arthritis treatment, and Repatha, a cholesterol-lowering medication. Amgen already saw revenue growth of 4% in its latest quarterly report, and it hopes that bringing in AWS will help spur further development. Indeed, AWS Vice President of Technology Matt Wood pointed out that the “…potential of generative AI…” is fueling gains throughout the “…care continuum.”
Amgen’s Pipeline Might be About to Expand Significantly
This deal comes at a good time for Amgen. Amgen recently saw massive growth in its patent filings, which were up 98% in August. It also saw a huge increase in grant filings, up 130% in September. That combination of factors suggests that Amgen’s pipeline of available treatments may be about to expand significantly. That would likely mean a lot more production going through that Columbus plant, and in turn, made calling in AWS a good plan overall.
Is Amgen a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AMGN stock based on 12 Buys, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 2.53% loss in its share price over the past year, the average AMGN price target of $283.86 per share implies 7.09% upside potential.