Amgen advised to consider ‘radical’ split by lead investor

One of Amgen’s (Nasdaq: AMGN) largest shareholders has said the USA-based biotechnology company would be better off if it split into two separate companies.

Third Point noted the company’s surprising “long-term underperformance” in a third-quarter investor letter. Fund manager Daniel Loeb said: “In the mature products segment, we believe revenues will be sustainable and concerns about potential erosion are overstated. With respect to Amgen’s pipeline, we believe the market underappreciates how disruptive some of its new products will be.”

Following an in-depth review of Amgen’s pipeline, the letter said it had asked the company to consider the “radical” option of splitting into two companies, one which will focus on mature products and another which will concentrate on R&D intensive projects. Mr Loeb said: “MatureCo would focus on efficiency and cash flow, while GrowthCo would emphasize product development and innovation.”