Amgen quarterly revenue rises 6%, profit beats Street estimates

Horizon Therapeutics

03/08/2023 21:01

By Deena Beasley
       Aug 3 (Reuters) - Amgen  AMGN.O , which is facing U.S.
Federal Trade Commission (FTC) delays to its planned acquisition
of Horizon Therapeutics  HZPN.O , on Thursday reported higher
quarterly profit on strong sales of treatments for cholesterol,
osteoporosis and other drugs.
    The biotech company, which slightly raised its outlook for
full-year revenue and profit, said it currently expects the
Horizon deal to close by mid-December.
    For the second quarter, Amgen reported revenue of $6.99
billion, up 6% from a year earlier, exceeding analysts'
estimates of $6.68 billion, according to Refinitiv data.
    Earnings, excluding items, rose 8% to $5.00 per share, ahead
of analyst estimates of $4.46 per share. Net earnings per share
increased 5% to $2.57.
    Product sales by volume grew 11% from a year earlier, but
net selling prices fell 2%, while foreign exchange rates and
lower inventory levels also limited revenue gains, Amgen said.
    "We had nine products with record sales in the quarter,"
Amgen Chief Financial Officer Peter Griffith said in a phone
interview. He said total revenue and adjusted earnings also set 
records for Amgen.
    Quarterly sales of cholesterol drug Repatha totaled $424
million, beating the average analyst estimate of $372 million,
while sales of osteoporosis drug Prolia reached $1.03 billion,
compared with the $954 million analysts had forecast.
    Sales of Amjevita, Amgen's biosimilar version of AbbVie's
 ABBV.N  blockbuster arthritis drug Humira, totaled $150
million, short of Wall Street expectations of $204 million.
    Amgen said U.S. Amjevita sales fell 63% from the first
quarter, driven by a drawdown in inventory levels, while sales
outside of the U.S. rose 13% from a year earlier.
    The California-based company also reported positive results
from a mid-stage trial of experimental drug tarlatamab in
patients with advanced lung cancer. Amgen said it is discussing
with regulators whether the data could be used to seek approval
of the drug for patients with relapsed or refractory disease.
    For the full year, Amgen raised its outlook for adjusted
earnings per share to a range of $17.80 to $18.80 from its prior
forecast of $17.40 to $18.60. The company also increased its
outlook for 2023 revenue to $26.6 billion to $27.4 billion from
$26 billion to $27.2 billion.
    Amgen said the forecast does not include any impact from the
planned Horizon acquisition.
    In a lawsuit, the FTC said it believed Amgen could leverage
its big selling drugs to pressure insurance companies and
pharmacy benefit managers to favor Horizon's two key products -
thyroid eye disease treatment Tepezza and gout drug Krystexxa -
over potential competitors. 
    "We look forward to making our case in court in September,"
the CFO said.
 
    

 (Reporting by Deena Beasley
Editing by Bill Berkrot)
 ((deena.beasley@thomsonreuters.com; 213 955 6746; Reuters
Messaging: deena.beasley.thomsonreuters.com@reuters.net))