Amgen has a promising growth outlook despite facing a "substantial patent cliff," according to HSBC. While some very old products are finally facing patent cliffs it will likely be gradual and a broadened portfolio allows for continued growth," analyst Morten Herholdt wrote in a Wednesday note. Amgen is set to lose exclusivity on patents for drugs that make up about three-quarters of the company's sales. The company's acquisition of Horizon Therapeutics will also help it extend sales and pipeline into the rare diseases market, Herholdt added. Due to the current investor skepticism with the looming patent cliff, Amgen shares are trading at an "undemanding" earnings multiple, according to the analyst.

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Persons: Amgen, Morten Herholdt, Herholdt, —, Michael Bloom Organizations: HSBC, Horizon Therapeutics Locations: Tuesday's