Amgen Reports Higher Quarterly Profit

By Deena Beasley

(Reuters) – Amgen reported a higher quarterly profit on Wednesday, driven by a 24% rise in sales of drugs for high cholesterol and osteoporosis. The company indicated that mid-stage trial results for a potentially lucrative obesity medicine will be unveiled late this year.

The U.S. biotech company stated that adjusted third-quarter earnings rose 13% from a year earlier to $5.58 per share, surpassing the $5.11 estimate by analysts, according to LSEG data.

Quarterly revenue of $8.5 billion was in line with analyst estimates of $8.52 billion.

BMO Capital Markets analyst Evan Seigerman commented that the financial results were somewhat uneventful as investor focus shifts to the upcoming readout of Phase 2 results for the company's experimental weight-loss drug MariTide.

Amgen (NASDAQ:AMGN) announced that initial results from the study will be presented late this year. The company has already begun preparations for the next round of clinical testing, potentially providing data for regulatory approval of the medicine.

Amgen CEO Bob Bradway stated on a conference call, "We're well advanced in preparing to launch a broad Phase 3 program for MariTide including obesity, obesity-related conditions, and type 2 diabetes."

Some analysts have projected annual sales of new weight-loss medicines could reach $150 billion in the next decade.

"MariTide has the potential to be the first therapy in this setting with monthly or even less frequent dosing," said Chief Scientific Officer Jay Bradner on the call.

Amgen has also begun studying a different weight-loss drug candidate, known as AMG513, but few details have been disclosed.

Additionally, the company announced plans for late-stage testing of experimental immunotherapy xaluritamig in men with advanced prostate cancer.

Chief Financial Officer Peter Griffith emphasized continued investment in research and development, noting that spending this year is expected to increase 25%.

Amgen shares, which closed at $315.54 in regular Nasdaq trading, were down about 1% after hours.

Third-quarter sales of cholesterol drug Repatha rose 40% to $567 million, while sales of osteoporosis treatment Prolia increased 6% to $1.05 billion. Conversely, sales of the older arthritis drug Enbrel fell 20% to $825 million.

Sales for Tepezza, targeting thyroid eye disease and acquired through last year's buyout of Horizon Therapeutics (NASDAQ:HZNP), rose 8% to $488 million.

For the full year, Amgen narrowed its earnings outlook to between $19.20 and $20.00 per share, revised from $19.10 to $20.10. The company also raised the midpoint of its revenue forecast, now expecting $33 billion to $33.8 billion, compared to a previous estimate of $32.8 billion to $33.8 billion.

Analysts had forecast earnings per share of $19.49 on revenue of $31.8 billion.

Jefferies analyst Michael Yee pointed out, "If the obesity data is good, investors will be inclined to look past the ho-hum quarterly results and tweaked guidance. If data is messy, investors will be more frustrated, given that Amgen's costs are rising."