Amgen AMGN and Bristol Myers Squibb BMY are among the largest global biotechnology companies with broad and diverse portfolios.

Amgen boasts one of the largest portfolios in the biotech industry with a strong presence in the oncology, cardiovascular disease, inflammation, bone health and rare disease markets.

Bristol Myers is focused on discovering, developing and delivering transformational drugs for oncology, hematology, immunology, cardiovascular, neuroscience and other diseases.

Both of these biotech giants have established strong footholds in their respective target markets, delivering consistent returns to shareholders. In such a scenario, choosing one stock over another can be challenging. Let us delve into their fundamentals, potential growth prospects, challenges and valuation levels to make a prudent choice.

The Case for AMGN

With a vast global footprint, Amgen’s diverse portfolio has positioned it well in the evolving biotech industry.

Growth products like Prolia, Xgeva, Evenity, Vectibix, Nplate and Kyprolis and Blincyto have performed well on consistent label expansions. Robust growth from these products has stabilized the company’s revenue base in the face of declining sales from legacy drugs.

However, increased pricing headwinds and competitive pressure are negatively impacting the sales of many products. Sales of best-selling drugs, Prolia and Xgeva, are expected to decline in 2025, mainly from the second half, due to biosimilar competition.

Nonetheless, Repatha, a key drug in Amgen’s arsenal, is driving the growth trajectory. The approval of Tezspire/tezepelumab to treat severe asthma has also strengthened the company’s portfolio.

Amgen has promising candidates in its pipeline, which represent significant commercial potential. Amgen plans to conduct a broad phase III program on MariTide across obesity, obesity-related conditions and type-II diabetes. Amgen expects data readouts from the ongoing phase II study in type II diabetes and part II of the ongoing phase II study in obesity in the second half of 2025.

Amgen also boasts a strong biosimilars portfolio. Approvals of Wezlana and Pavblu have strengthened this portfolio.

With a robust cash balance, Amgen is continually seeking strategic deals to expand its business. The acquisition of Horizon Therapeutics has significantly expanded Amgen's rare disease business by adding several rare disease drugs, including Tepezza, Krystexxa and Uplizna, to its portfolio.

The Case for BMY

BMY’s Growth Portfolio, comprising drugs like Reblozyl, Breyanzi, Camzyos and Opdualag, has stabilized its revenue base amid generic competition for its legacy drugs. Thalassemia drug Reblozyl has put up a stellar performance since its approval, with strong growth in the United States and international markets. The drug is expected to contribute significantly in the coming decade.

Story Continues

Sales of its oncology drug, Opdualag, have also been robust, fueling the top line. Strong growth in the U.S. market and encouraging uptake in newly launched markets have boosted sales. Strong momentum in Camzyos should further drive growth.

Opdivo continues to maintain momentum on consistent label expansions. The FDA approval of Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use should help extend the impact of its immuno-oncology franchise to patients into the next decade. Other drugs like Zeposia and Krazati should also contribute to top-line growth.

The company has made strategic acquisitions to broaden its portfolio and drive top-line growth. The recent FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia in adults, was approved under the brand name Cobenfy. The approval of Cobenfy for schizophrenia broadens BMY’s portfolio and validates the acquisition of Karuna Therapeutics.

While the newer drugs boost sales, generic competition for legacy drugs, which account for the majority of total revenues, is a significant headwind and will affect top-line growth in the near term. Legacy Portfolio revenues declined 20% in the first quarter due to continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane, as well as the U.S. Medicare Part D redesign effect.

Nonetheless, BMY is looking to boost its bottom line through cost-cutting initiatives.

While BMY’s strategy of acquiring companies with promising drugs and candidates is encouraging, this has resulted in substantial debt to finance these acquisitions. As of March 31, 2025, the company had cash and equivalents of $12.1 billion and a long-term debt of $46.1 billion.

A Look at Estimates: AMGN versus BMY

The Zacks Consensus Estimate for AMGN’s 2025 sales implies a year-over-year increase of 5.31%, and that for earnings per share (EPS) suggests a year-over-year improvement of 4.79%.  EPS estimates for 2025 have moved north in the past 60 days. However, the metric for 2026 has moved south during the same time frame.

AMGN’s Estimate MovementZacks Investment Research

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The Zacks Consensus Estimate for BMY’s 2025 sales implies a year-over-year decrease of 4.10% while that for EPS suggests a year-over-year increase of 499.13%. EPS estimates for 2025 have moved north in the past 60 days, but the same for 2026 has remained unchanged during the said timeframe.

BMY’s Estimate MovementZacks Investment Research

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Price Performance and Valuation of AMGN and BMY

From a price-performance perspective, AMGN has fetched better returns than BMY so far this year. Shares of AMGN have gained 6.2%, while those of BMY have lost 15.5%. The industry has declined 6.2% in the said period.Zacks Investment Research

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From a valuation standpoint, as the biotech industry has very few players with approved drugs, we use the P/E ratio of the large-cap pharma industry to compare these companies. Going by the same, AMGN is more expensive than BMY. AMGN’s shares currently trade at 13X forward earnings, higher than 7.10 for BMY.Zacks Investment Research

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AMGN and BMY’s attractive dividend yield is a strong positive for investors. However, BMY’s dividend yield of 5.30% is higher than AMGN’s 3.49%.

Which Stock is a Better Pick for Now?

Large biotech companies are generally considered safe havens for investors interested in this sector. However, with both AMGN and BMY currently carrying a Zacks Rank #3 (Hold), choosing one stock over the other is a complex task. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMGN’s strong and diverse portfolio should enable it to maintain growth. Key drugs like Evenity and Repatha, as well as newer drugs like Tavneos and Tezspire, continue to drive growth and offset the revenue decline from oncology biosimilars and legacy drugs like Enbrel.

BMY’s efforts to revive the top line in the face of generic challenges for key drugs are commendable. However, we believe there is still time before the efforts reap a harvest for the company. The outlook for 2025 indicates challenges as of now.

Hence, AMGN is a better pick at present (despite its pricey valuation) as we believe there is room for growth buoyed by solid fundamentals and recent positive estimate revisions.

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This article originally published on Zacks Investment Research (zacks.com).

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