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I liked Amgen's numbers, too. The reason that I left them out is that although they are moving closer and closer to having the business model of a pharmaceutical they are not there yet.

This is still a biotech company. There is not a consumer products segment. They are entirely dependent upon research to produce the next new product.

The interesting thing to consider here is that sometimes they license their products to others. So, they move the manufacturing to someone else and collect income through royalties. This is actually kind of interesting from a CK perspective.

It makes the business model lighter, helps reduce inventory, reduces the need for heavy capital investment, but it decreases the ability to manufacture and sell product at high margin (generally, when it comes to patented products, you make more if you do the manufacturing (of course, you have to expend the capital first).

Phil
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