Amgen bets on growth in China

November 4, 2019

Biotechnology company Amgen is investing U.S. $2.7 billion in the Chinese biotech firm Beigene.

The all-cash deal values gives Amgen a 20% stake in BeiGene and going forward, BeiGene will commercialize some of Amgen’s cancer drugs which will be sold in China.

The two companies will also work together to develop 20 BeiGene cancer drugs in China and elsewhere. The deal increases Amgen’s footprint in China’s rapidly growing pharmaceutical market.

Amgen is an American multinational biopharmaceutical company based in California. It operates in 120 countries with a focus on six therapeutic areas: cardiovascular disease, oncology, bone health, neuroscience, nephrology and inflammation.

Its medicines typically address diseases for which there are limited treatment options, or are medicines that provide an alternative option to what is otherwise available.

Beigene was founded in Beijing in 2010 and opened its first US office in 2015. In 2016 it became the first Chinese- biotech to go public on the Nasdaq exchange with an $182 million IPO.

BeiGene develops molecularly targeted and immuno-oncology drugs to treat cancer. Amgen says the investment means it has expanded its geographic presence from approximately 50 to 100 countries since 2011.

BeiGene will spend as much as $1.25 billion on the drug development program with Amgen who will pay royalties to BeiGene on the sales of these products outside of China.

The Chinese pharmaceutical market is growing by double digits and is in second place behind only the United States.

Amgen is a top holding of the Harvest Healthcare Leaders Income ETF (HHL-T, HHL.U-T).  

As of Sept. 30, 2019, the ETF held 23 of the largest global healthcare companies with an average market capitalization of $161 billion CAD.

About 46% of the holdings are in pharmaceuticals, 20%, including Amgen, in biotechnology, 20% in healthcare equipment and supplies and 14% are healthcare providers.

The holdings have an average dividend yield of 2.07%, a current monthly distribution yield of 9.49% for the ETF (yield enhanced through a covered call option overlay) as of Sept. 30, 2019 and a 5-year return on equity of 18.34%”

For more on Harvest Portfolios Group click here.


The views and/or opinions expressed in the blog are of a general nature and are for informational purposes only. Blog contents should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies. Investors should consult their investment advisor before making any investment decision.

You may also like…


For Information Purposes Only. Commissions, management fees and expenses all may be associated with investing in HARVEST Exchange Traded Funds (managed by Harvest Portfolios Group Inc.) Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies. Tax, investment and all other decisions should be made with guidance from a qualified professional.

Certain statements in the Harvest Blog are forward looking Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or  “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS.

FLS are not guarantees of future performance and are by their nature based on numerous assumptions, which include, amongst other things, that (i) the Fund can attract and maintain investors and have sufficient capital under management to effect their investment strategies, (ii) the investment strategies will produce the results intended by the portfolio managers, and (iii) the markets will react and perform in a manner consistent with the investment strategies. Although the FLS contained herein are based upon what the portfolio manager believe to be reasonable assumptions, the portfolio manager cannot assure that actual results will be consistent with these FLS.

Unless required by applicable law, Harvest Portfolios Group Inc. does not undertake, and specifically disclaim, any intention or obligation to update or revise any FLS, whether as a result of new information, future events or otherwise.

Sign up to receive our monthly updates