What Happened?
Shares of biotech company Amgen (NASDAQ: AMGN) jumped 3.1% in the afternoon session after the company received a favorable court ruling that blocked a first-of-its-kind state price cap on its blockbuster drug, Enbrel.
A federal judge in Colorado granted a preliminary injunction, halting the state's plan to impose a 70% price cap on the autoimmune drug. The judge sided with Amgen's argument that the cap could cause significant "economic injury" and is likely preempted by federal law. The ruling eases a major pricing threat for one of Amgen's most important products, as Colorado's move was seen as a potential precedent for other states.
After the initial pop, the shares cooled down to $371.41, up 2.8% from the previous close.
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What Is The Market Telling Us
Amgen’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 6.4% on the news that the company announced a $650 million investment to expand its US manufacturing network.
The investment is aimed at increasing drug production at its biologics facility in Juncos and is expected to create nearly 750 new jobs, including highly skilled manufacturing roles. According to CEO Robert A. Bradway, the expansion highlights Amgen's commitment to US biomanufacturing and strengthening its global supply chain.
In other news, the company reached a settlement with Biocon Biologics. The agreement resolves pending patent litigation and allows Biocon to launch biosimilar versions of Amgen's drug, denosumab, in the U.S. starting October 1, 2025.
Amgen is up 13.4% since the beginning of the year, and at $371.41 per share, it is trading close to its 52-week high of $388.16 from February 2026. Investors who bought $1,000 worth of Amgen’s shares 5 years ago would now be looking at an investment worth $1,493.
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