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Amgen surpasses expectations despite Enbrel sales decline

  • Amgen’s fourth-quarter net income reaches $767 million, beating analysts’ expectations
  • Adjusted per-share earnings of $4.71 exceed the FactSet consensus of $4.59
  • Revenues total $8.196 billion, surpassing the FactSet consensus of $8.126 billion
  • Enbrel, a top-selling rheumatoid-arthritis drug, experiences an 8% sales decline
  • Acquisition of Horizon Therapeutics contributes $954 million in sales
  • Amgen expects total revenues of $32.4 billion to $33.8 billion for 2024
  • Osteoporosis drug Prolia performs well with $1.1 billion in sales
  • Amgen’s experimental obesity drug, MariTide, shows promising results in early-stage study
  • MariTide’s less-frequent dosing offers convenience and potential competitive advantage

Introduction

Amgen Inc., a leading biotech company, has reported strong fourth-quarter profits and sales that exceeded analysts’ expectations. Despite a decline in sales of their top-selling rheumatoid-arthritis drug, Enbrel, Amgen’s overall performance demonstrates resilience in the face of challenges. This article explores Amgen’s financial results and highlights key developments in their drug portfolio.

Amgen’s Fourth-Quarter Performance

Net Income and Earnings

Amgen’s net income for the fourth quarter reached $767 million, or $1.42 per share, surpassing the $1.62 billion, or $3.00 per share, reported in the previous year. Adjusted per-share earnings of $4.71 also exceeded the FactSet consensus of $4.59. These figures indicate Amgen’s ability to maintain profitability despite market fluctuations.

Revenue Growth and Horizon Therapeutics Acquisition

Amgen’s revenues for the fourth quarter totaled $8.196 billion, up from $6.839 billion in the same period the previous year. This growth can be attributed to the recent acquisition of Horizon Therapeutics, which contributed $954 million in sales. Notable revenue generators from this acquisition include the thyroid eye-disease treatment Tepezza and the chronic gout treatment Krystexxa.

Enbrel and Repatha Sales

Enbrel, one of Amgen’s top-selling drugs, experienced an 8% sales decline in the fourth quarter, falling short of analysts’ estimates. Lower net selling prices, coupled with increased rebates to maintain payer coverage, contributed to this decline. Similarly, cholesterol treatment Repatha missed analysts’ expectations with $417 million in total fourth-quarter sales.

Promising Performance of Prolia

Osteoporosis drug Prolia was a bright spot in Amgen’s fourth-quarter performance, with $1.1 billion in sales. This represents a 12% increase from the previous year and surpasses analysts’ expectations. Prolia’s success demonstrates Amgen’s ability to capitalize on market demand for effective treatments.

Potential Breakthrough in Obesity Treatment: MariTide

Amgen researchers recently published an early-stage study on MariTide, an experimental obesity drug. The study revealed that patients taking MariTide lost up to 14.5% of their body weight after 85 days, with some individuals maintaining the weight loss for 150 days after their last dose. MariTide’s less-frequent dosing, administered once every four weeks, offers convenience for patients and reduces manufacturing burden compared to competing drugs like Zepbound and Wegovy.

Awaiting Phase 2 Trial Results

Investors are eagerly anticipating the full phase 2 trial results for MariTide, expected later this year. The success of this drug could position Amgen as a significant player in the obesity-drug market, further boosting their growth potential.

Conclusion

Amgen’s strong fourth-quarter performance, despite the decline in Enbrel sales, highlights the company’s resilience and ability to adapt to market challenges. The acquisition of Horizon Therapeutics and the success of drugs like Prolia showcase Amgen’s commitment to innovation and meeting patients’ needs. The promising results of the obesity drug MariTide further fuel optimism for Amgen’s future growth. Investors and industry experts eagerly await further developments as Amgen continues to shape the biotech landscape.

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