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AMGN
CNBC
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Healthy Returns: Amgen joins a growing list of drugmakers selling directly to consumers

1. Amgen offers Repatha at 60% lower cash price, responding to political pressure. 2. Direct-to-consumer strategies are increasingly adopted by various pharmaceutical companies. 3. TrumpRx.gov aims to lower drug prices through direct sales from manufacturers. 4. AmgenNow allows cash-pay patients to access Repatha affordably, bypassing intermediaries. 5. The industry anticipates more pricing deals impacting drug availability and costs.

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FAQ

Why Bullish?

Amgen's move to offer Repatha at a substantial discount may enhance competitive positioning, similar to prior successful pricing strategies by pharmaceutical companies that led to increased sales volumes. For instance, rapid adoption of Novo Nordisk's Wegovy boosted its market presence amidst rising health awareness.

How important is it?

The news directly related to Amgen's pricing strategy potentially reshapes its customer acquisition approach, affecting future sales and competitive landscape. Given the increasing urgency for affordable healthcare solutions, the direct impact on AMGN's stock price is probable.

Why Short Term?

The immediate response from patients seeking more affordable medication could drive short-term revenue increases as Amgen capitalizes on direct-to-consumer sales. A historical example includes Eli Lilly's rapid customer acquisition through its direct sales model that correlated with increased product usage.

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