Pharmaceutical giant Amgen (AMGN) is looking to invest $200 million in its brand new site in India, CEO Robert Bradway said at the inauguration of the Hyderabad site on Monday, as the threat of U.S. tariffs hangs over an industry gathering in the city this week.
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According to Reuters, Bradway also pledged to “make additional significant investments in future years.” Amgen announced the plans last year for a site in India to harness AI and data science to support development of new medicines.
Hyderabad is due to host the BioAsia conference this week, which will feature speakers from drugmakers including Amgen, Eli Lilly (LLY) Novartis (NVS), and Medtronic (MDT), as well as many from India’s huge pharma industry.
Pharma Tariffs in Focus
Hanging over the conference, U.S. President Donald Trump said last week he will impose levies of at least 25% on pharmaceutical imports, a move that could disproportionately impact India’s drugmaking industry.
Indian generic drugmakers such as Dr Reddy’s Laboratories (RDY) and Sun Pharmaceutical (IN:SUNPHARMA) count the U.S. as their largest market, with exports reaching $8.7 billion in 2024, about a third of the industry’s overall exports, according to the trade body Pharmaceuticals Export Promotion Council of India (Pharmexcil).
Generic drugs, which can be made by other companies after the original developer of a medicine has lost exclusivity, are a key part of the pharmaceutical supply chain and saved the U.S. healthcare system $408 billion last year, according to research firm IQVIA.
However, the sector can be hopeful after India and the U.S. agreed this month to accelerate trade talks. Trump also agreed with India’s Prime Minister Modi on an initiative to collaborate on emerging technologies. Amgen’s site in India is being viewed as a good example of this kind of cooperation.
Amgen is known for its osteoporosis medicine Prolia and arthritis pain relief drug Enbrel. Recently its early-stage obesity asset AMG 513 was placed on clinical hold by the U.S. Food and Drug Administration, though Bradway said this was not related to the drug itself. Amgen logged $9.1 billion in total revenues in its Fiscal fourth quarter, an 11% year-on-year increase.
Is AMGN a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on AMGN stock, based on 11 Buys, seven Holds and one Sell. The average AMGN price target of $328.75 implies about 8% upside, with the stock up 17% this year.
