Amgen (NASDAQ:AMGN), despite facing delays from the U.S. Federal Trade Commission (FTC) in its acquisition of Horizon Therapeutics, reported a surge in quarterly profit driven by robust sales of cholesterol and osteoporosis treatments, among other drugs.
The biotech giant raised its outlook for full-year revenue and profit slightly and anticipates the completion of the Horizon deal by mid-December. Amgen’s Chief Financial Officer, Peter Griffith, expressed optimism about the company’s performance, stating, “We had nine products with record sales in the quarter.”
During the quarter, sales of the cholesterol drug Repatha surpassed expectations, reaching $424 million compared to the estimated $372 million. Similarly, the osteoporosis drug Prolia recorded sales of $1.03 billion, surpassing the projected $954 million.
The impressive results indicate a rebound after a challenging first quarter that raised concerns among investors about a slowdown in Amgen’s core business. According to Jefferies analyst Michael Yee, the second-quarter performance showed signs of a “bounce back.”
Amgen reported second-quarter revenue of $6.99 billion, marking a 6% increase from the previous year and surpassing analysts’ estimates of $6.68 billion, as reported by Refinitiv data. Earnings, excluding certain items, rose by 8% to $5.00 per share, outperforming analyst expectations of $4.46 per share.
Although product sales volume grew by 11% year-on-year, net selling prices experienced a 2% decline. Additionally, revenue gains were limited due to foreign exchange rates and lower inventory levels.
Sales of Amjevita, Amgen’s (NASDAQ:AMGN) biosimilar version of AbbVie’s (NYSE:ABBV) blockbuster arthritis drug Humira, fail to meet Wall Street expectations at $150 million. U.S. Amjevita sales witnessed a 63% decline from the first quarter, mainly attributed to inventory drawdown, while international sales rose by 13% from the previous year.
On a positive note, Amgen shared favorable results from a mid-stage trial of its experimental drug tarlatamab in advanced lung cancer patients. The company is exploring the possibility of seeking regulatory approval for the drug’s use in patients with relapsed or refractory disease.
Looking ahead, Amgen (NASDAQ:AMGN) moderately raised its outlook for adjusted earnings per share for the full year, now anticipating a range of $17.80 to $18.80, up from the prior forecast of $17.40 to $18.60. Amgen also increased its revenue projection for 2023 to $26.6B to $27.4B from $26B to $27.2B, excluding any potential impact from the Horizon acquisition.
Regarding the FTC’s lawsuit, which alleges that Amgen may exert influence on insurance companies and pharmacy benefit managers to favor Horizon’s products over potential competitors, the CFO expressed confidence, stating, “We look forward to making our case in court in September.”
After hours, Amgen stock rose approximately half a percentage point to $232.
Featured Image: Megapixl © Andreistanescu
Author Faith Yakubu 
