Amgen, Inc. (NASDAQ:AMGN) is entering a biosimilar onslaught as the company focuses its attention on the $3 billion biosimilar market. At the same time, the company is also looking to cut cost and make its operations more efficient. It will lay off a number of employees and shut certain facilities in the name of cost-saving efforts.
As concerns biosimilar efforts, Amgen, Inc. (NASDAQ:AMGN) said it was developing three new biosimilar programs. It said the biosimilar market had the opportunity to bring in over $3 billion in revenue annually. The company expects its first biosimilar product to launch in 2017, and the rest are expected through 2019.
Meanwhile, Amgen, Inc. (NASDAQ:AMGN) plans to lay off 20% of its current workforce. It also intends to reduce its manufacturing facilities by 23%.
Analysts at Nomura weighed in on the stock of Amgen, Inc. (NASDAQ:AMGN), giving it a “Buy” recommendation and target price of $193, up from $144. The analysts cited that cost-cutting and improved long-term outlook makes the stock exciting.
Realty Income Corp (NYSE:O) announced that its 3Q profit edged up even as it moved to offer an upbeat guidance for the current fiscal year. The REIT reported net income of $57.9 million, which was ahead of $41.1 million in the same quarter last year. Earnings per share for the latest quarter were recorded as $0.26, better than $0.21 last year.
Coming onto the FFO column, Realty Income Corp (NYSE:O) reported 8.5% increase in FFO per share to $0.64, which compared favorably with $0.59 last year. Revenue in the quarter came in at $235.7 million, up almost 17% from the same quarter a year ago. On the average, analysts expected revenue of $232.09 million for the quarter.
Realty Income Corp (NYSE:O) now expects adjusted FFO per share to come in the range of $2.55-$2.57 per share. That signals potential improvement of 5.8-6.6% from the previous year.
PG&E Corporation (NYSE:PCG) this week unveiled the first of the new state-of-the-art distribution control centers it is establishing. The company officially opened the new facility in Fresno, in which it invested $28.5 million. The facility will now take care of the company’s distribution control functions in California.
It has also lined up two more similar facilities to enhance its operations in California. PG&E Corporation (NYSE:PCG) serves about 16 million customers in California, and it plans to invest nearly $940 million in the region for various operation enhancing projects.