Amgen Shares Take Off on Dow Jones Inclusion

Healthcare stocks in the US

Author: Tim Phillips

Date: June 12, 2024

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News that biotech company Amgen Inc (NASDAQ: AMGN) would be included in the 124-year old Dow Jones Industrials Index drove its shares 5.4% higher on Tuesday.

The other two firms to be included in the Dow Jones, Inc (NASDAQ: CRM) and Honeywell International Inc (NYSE: HON), also saw their share prices rise.

Amgen will be the first biotech company to be included in the major index, with the announced reshuffling having been initiated by Apple’s impending stock-split. 

The price-weighted index would have seen a marked reduction in the weighting of the technology sector had it not been reorganised.

Amgen has been a powerhouse in the stock market over the long term, with shares returning nearly 400% over the past 10 years.

The firm has also been one of the many drugs companies targeting a Covid-19 vaccine. Amgen managed to return to growth in its latest quarter, posting a 6% revenue expansion.

Meanwhile it has also broadened its investments by taking stakes in other biotech firms, including China’s leading biotech company BeiGene Ltd (SEHK: 6160).

With biotechnology taking off as a novel way to combat and treat diseases, Amgen looks set to keep leading over the long term.

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About the Author: Tim Phillips