Amgen vs. Axsome Therapeutics: Which Healthcare Stock Is a Better Buy in 2026?
Amgen generated $8.1 billion in free cash flow in 2025, with a 21% net margin, while Axsome is scaling rapidly but still unprofitable.
Overview
Choosing between Amgen (NASDAQ:AMGN) and Axsome Therapeutics (NASDAQ:AXSM) means weighing the established stability of a global pharmaceutical leader against the rapid growth of an emerging central nervous system specialist.
Amgen operates as a diversified biotechnology giant with products reaching patients in approximately 100 countries. Axsome Therapeutics focuses on central nervous system disorders like depression and narcolepsy. While Amgen relies on its massive scale and cash generation, Axsome is currently prioritizing the commercialization of its newer therapies to reach long-term profitability.
Details
Amgen discovers and delivers medicines for serious diseases across several core areas, including inflammation, rare disease, and oncology. Its massive scale allows it to distribute products to roughly 100 countries, though McKesson (NYSE:MCK), Cencora (NYSE:COR), and Cardinal Health (NYSE:CAH) accounted for 77% of its fiscal 2025 revenue. Customer concentration like this adds a layer of risk, even if it is common among major biotech stocks.
Source
Originally published at www.fool.com.