Amgen Q2 revenue declines 3%, but still tops analyst expectations

Headline results for the second quarter:

Revenue

$5.9 billion (forecasts of $5.7 billion)

-3%

Product Sales

$5.6 billion

-2%

Profit

$2.2 billion

Versus $2.3 billion

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

"With our newer products generating strong volume gains globally and many first-in-class medicines advancing through our pipeline, we are well-positioned to serve patients and deliver long-term growth for our shareholders," commented CEO Robert Bradway.

Other results:

  • Enbrel: $1.4 billion, +5%, mainly driven by net selling price and favourable changes in inventory levels, partially offset by lower unit demand
  • Neulasta: $824 million, -25%, fuelled by a lower net selling price and biosimilar competition
  • Prolia: $698 million, +14%, driven by higher unit demand
  • Xgeva: $499 million, +10%, attributed to higher unit demand
  • Aranesp: $436 million, -8%, fuelled by the impact of competition on unit demand
  • Kyprolis: $267 million, +2%, driven by higher unit demand
  • Repatha: $152 million, +3%, versus forecasts of $157 million, fuelled by higher unit demand, and partially offset by net selling price
  • Sensipar/Mimpara: $122 million, -71%, attributed to the impact of generic competition on unit demand
  • Aimovig: $83 million, besting expectations of $77.4 million
  • Blincyto: $78 million, +30%, driven by higher unit demand

Looking ahead:

Amgen expects full-year earnings of $13.75 and $14.30 a share, narrowed from a prior forecast of $13.25 per share to $14.30 per share. The drugmaker also anticipates revenues of $22.4 billion to $22.9 billion, versus a previous projection of $22 billion to $22.9 billion.

What analysts said:

"Amgen had a good quarter all around," remarked Jefferies analyst Michael Yee, adding that the drugmaker "tightened up guidance to the higher end of the range, which is where the Street is at."

 

Pipeline update:

Amgen said the FDA is expected to decide whether to approve the company's filing for ABP 710, a biosimilar candidate to Johnson & Johnson's Remicade (infliximab), by December 14. In addition, results from a Phase III study of ABP 798, Amgen's proposed biosimilar to Roche and Biogen's Rituxan (rituximab), in patients with non-Hodgkin's lymphoma are expected in the third quarter. During the quarter, Amgen also provided a clinical update for KRAS inhibitor AMG 510, including tumour responses in patients with colorectal and appendiceal cancer, and the start of enrollment in the checkpoint inhibitor combination arm of the first-in-human study. Initiation of a potentially registrational monotherapy study is planned for this year, the company added.

 

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