The healthcare giant had 12 products drive double-digit growth last quarter, and there are many more in development

If you’re looking for a top healthcare company to invest in, we recommend that you consider one that has several fast-growing products in its portfolio. By looking for diversified growth stocks, you can minimize your risk and reduce significant volatility. If a company has a diverse product mix, it has many ways to grow its operations without being too dependent on a single asset.

Amgen (AMGN -0.53%) it comes off a strong quarterly performance in which several drugs generated double-digit growth. And even better, its growth prospects could get even better in the future.

Amgen has many fast-growing drugs in its portfolio

On Aug. 6, Amgen reported strong second-quarter results for the period ended June 30. Product sales reached just over $8 billion and grew 20% year over year. The diversity of the company’s portfolio is striking, led by osteoporosis drug Prolia, which not only generated $1.2 billion in revenue, but grew at a solid 13% year-over-year pace.

In all, 12 drugs in Amgen’s stable generated double-digit revenue growth.

Aside from Prolia, these five drugs stand out for generating at least $200 million in sales while growing at least 10% year-over-year (not including new drugs that didn’t contribute to revenue during the previous year):

Data source: company files.

In addition, Amgen has used acquisitions to help grow and expand its pipeline over the years. In 2022, it acquired ChemoCentryx for $3.7 billion, and last year it completed its $27.8 billion acquisition of Horizon Therapeutics, which gave it access to a promising treatment in Tepezza, which treats thyroid disease.

At its peak, Street analysts expect the Horizon acquisition to generate nearly $4 billion in annual sales. Last quarter, sales of Tepezza totaled $479 million, and it’s quickly becoming one of the company’s best-selling drugs.

A bigger growth catalyst could be coming for Amgen

As good as Amgen’s growth numbers are, they could look even better going forward. That’s because the company is working on developing a promising weight loss treatment in MariTide. The anti-obesity market could be worth a staggering $100 billion Eli Lilly and Novo Nordisk dominate it today, Amgen could become a serious competitor in the future.

Currently, MariTide is still in Phase 2, meaning it could be several years before it potentially reaches the market. However, what’s encouraging about this candidate is that patients may only need to take it monthly, unlike treatments like Wegovy and Zepbound, which need to be taken weekly. Importantly, clinical trial data suggest that patients maintain their weight even after they stop taking the drug, unlike other weight loss drugs.

Although MariTide is still in the early stages of its development, it shows great promise. If patients can take it less frequently without having to worry about weight regain after stopping treatment, it could become one of the best weight loss candidates on the market.

Is Amgen stock a no-brainer buy?

Amgen shares trade at more than 50 times trailing earnings, but only 17 times analysts’ estimates of future earnings. The stock’s price-to-earnings growth ratio is over 2, which suggests it may be expensive, even when considering future growth prospects. But if MariTide wins approval, those growth prospects would be in line for a huge upgrade.

Amgen’s business looks good, but its valuation may be a bit high, so it may not be a slam-dunk buy right now. It can be a good investment and its 2.8% dividend yield sweetens the deal for long-term investors. But the stock’s gains will likely depend on how successful MariTide proves to be. If it’s a winner, the healthcare stock could double in value in five years. If it falters, however, then there could be a risk of a sell-off.

There is some risk with Amgen because of the hype and excitement surrounding weight loss treatments. But if you’re comfortable with that, then this may be a stock worth adding to your portfolio today.