Last Tuesday, Amgen, the California-based biotech pharmaceutical giant, announced its plans to lay off roughly 2,900 workers and close its facilities in Colorado and Washington. The decision was made to reallocate financial resources towards new marketing initiatives for future drug releases. Amgen has been the largest Biotech Company in both states, opening opportunities for other companies to acquire that position, as well as a Biotech workforce left jobless. However, trends in the Biotech industry show a decline in R&D and skepticism of whom or if any companies will replace the presence of Amgen.
In the week since the announcement, Amgen stock has risen, and led to a “buy” status after a year of steady growth and favorable changes in operations. The Biotech industry as a whole has seen a trend of declining market stability; however, this does not apply to the biotech pharmaceutical industry. According to Forbes, “a few sectors have managed to hold up surprisingly well. In particular, there has been great strength in the [biotech pharmaceutical], as this segment is currently leading the market from a year-to-date look”. The biotech pharmaceutical industry is displaying huge potential, and despite Amgen’s recent lay-off, will lead to market growth and job opportunities.