Amgen (NASDAQ:AMGN) announced on Tuesday a 15% increase in its adjusted fourth-quarter profit, propelled by a 20% surge in revenue attributed to the company’s acquisition of rare disease drugmaker Horizon Therapeutics in October. Quarterly revenue reached $8.2 billion, slightly surpassing analysts’ estimates of $8.1 billion, according to LSEG data.
Excluding Horizon’s medications, Amgen noted a 5% year-over-year growth in product sales, driven by a 9% rise in volume, albeit partially offset by lower net selling prices. Despite falling 2% in regular trading on Tuesday to close at $316.07, Amgen’s shares experienced only a slight decline to $315 after hours.
Adjusted earnings per share climbed to $4.71 from $4.09 a year earlier, surpassing analyst estimates of $4.61. For the full year 2024, the company anticipates adjusted earnings per share ranging from $18.90 to $20.30 on revenue of $32.4 billion to $33.8 billion, slightly differing from analysts’ projections of $20.02 per share and revenue of $32.7 billion.
Jefferies analyst Michael Yee expressed satisfaction with the guidance, remarking that it aligns well with consensus expectations. Amgen’s Chief Financial Officer Peter Griffith attributed the outlook to the inclusion of Horizon and anticipated volume-driven growth in worldwide drug sales.
Prolia, an osteoporosis drug, led quarterly product sales with a 12% increase to $1.1 billion, while sales of rheumatoid arthritis drug Enbrel declined by 8% to just over $1 billion.
Amgen’s acquisition of Horizon, valued at $27.8 billion, was completed after the U.S. Federal Trade Commission withdrew its opposition, contingent upon Amgen refraining from employing anticompetitive tactics.
Following the acquisition, Amgen reported sales figures for Tepezza, Horizon’s thyroid eye disease drug, totaling $448 million, and for Krystexxa, a gout drug, totaling $272 million between October 6 and the end of the year.
Amgen reaffirmed its progress with its experimental oral obesity drug AMG786, expecting to report the first human trial data in the first half of the year, and anticipated results from a mid-stage trial of its lead injectable weight loss candidate, MariTide, later in the year.
Amgen’s CEO Robert Bradway highlighted the company’s focus on significant pipeline milestones in 2024. Additionally, Amgen announced plans to repurchase no more than $500 million of its shares this year, emphasizing its commitment to deleveraging goals.
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Author Faith Yakubu 
