Amgen’s (NASDAQ:AMGN) stock fell Friday after the firm lowered its projection for 2022 and announced a $3.7 billion deal to acquire ChemoCentryx (NASDAQ:CCXI).
Amgen (NASDAQ:AMGN) currently anticipates annual sales of $25.5 billion to $26.4 billion. This is consistent with the company’s prior guidance. Additionally, the company maintained its adjusted earnings target of $17 to $18 per share. Analysts anticipated earnings per share of $17.41 on revenue of $26.23 billion.
Gregory Renza, an analyst at RBC Capital Markets, remarked that the company’s “portfolio of drugs performed well.” He stated that the “lung cancer medicines Lumakras and the asthma medication Tezspire posted their best quarters since their introduction.”
Lumakra’s sales increased by 24% to $77 million, while Tezspire’s sales were $29 million. Nevertheless, according to reports, Lumakra’s sales surpassed some forecasts and fell short of others.
Our focus remains on the launch progressions of Lumakras, Tezspire, and now Tavneos in the fourth and first quarters, emerging biosimilars pipeline launches, product volume/performance, macroeconomic volatility, and future growth opportunities through business development, he told clients in a report. By acquiring ChemoCentryx (NASDAQ:CCXI), Amgen (NASDAQ:AMGN) will have access to the anti-inflammatory medication Tavneos.
During today’s morning trading on the stock market, Amgen’s share price decreased by a small amount to about 245.70.
Amgen Stock: Sales Prices Under Pressure
During the June quarter, total revenues increased by 1%, to $6.59 billion. This exceeded experts’ expectations of $6.52 billion for Amgen (NASDAQ:AMGN) shares. According to FactSet, adjusted earnings increased 163% to $4.65 per share, exceeding forecasts for $4.39 per share.
Compared to the same three months last year, sales of Amgen’s products increased by 3%. They benefited from a 10% increase in demand and suffered a 6% drop in net selling price. The impact of exchange rates was likewise negative by 2% points. Revenue from Amgen’s top medicine, Enbrel, fell 8% to $1.05 billion. The company (NASDAQ:AMGN) anticipates that Enbrel will continue to encounter pricing pressure owing to new competition.
The number of patients using it decreased by 3% during the second quarter. In a note to clients, SVB Securities analyst David Risinger stated that Enbrel sales were in line with forecasts.
Prolia, Amgen’s second highest moneymaker, generated $922 million. According to Risinger, sales of osteoporosis medicine increased 13% year over year and were 3% higher than anticipated.
Featured Image: Megapixl © Andreistanescu
