Amgen posts double-digit sales gains in Q1, says it plans to test Otezla as potential coronavirus treatment

Headline results for the first quarter:

Revenue $6.2 billion (forecasts of $6 billion) +11%
Product sales $5.9 billion +12%
Profit $1.8 billion Versus $2 billion

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

What the company said:

Amgen said sales during the quarter were driven by volume growth across a number of newer products, including Otezla, Repatha, Mvasi, Kanjinti and Evenity, offset partially by declines in select products due to the impact of biosimilar and generic competition.

 

The company also announced that Otezla will be investigated as a potential immunomodulatory treatment in adult patients with COVID-19 in upcoming platform trials. CEO Robert Bradway remarked "we are committed to an uninterrupted supply of our medicines to patients [and] advancing potential new medicines to treat serious diseases, including COVID-19."

Other results:

  • Enbrel: $1.2 billion, flat from the year-ago period, as favourable changes to estimated sales deductions and inventory were undercut by lower unit demand and net selling price
  • Prolia: $654 million, up 10%, lifted by higher unit demand
  • Neulasta: $609 million, down 40%, hit by competition on unit demand and net selling price
  • Xgeva: $481 million, up 2%, driven by higher unit demand
  • Otezla: $479 million, marking the first full quarter in Amgen's product line up since being acquired last November from Bristol Myers Squibb's Celgene unit
  • Aranesp: $422 million, up 2%, driven by higher unit demand and favourable changes in inventory, offset by lower net selling price
  • Kyprolis: $280 million, up 14%, boosted by higher unit demand and to a lesser extent, increased net selling price
  • Repatha: $229million, up 62%, with Amgen noting that the drug's 98% volume growth was countered by lower net selling price
  • Nplate: $218 million, up 15%, driven by higher unit demand
  • Vectibix: $202 million, up 19%, driven by higher unit demand
  • Parsabiv: $175 million, up 39%, with greater unit demand, offset partially by lower net selling price
  • Epogen: $155 million, down 29%, negatively impacted by lower net selling price and unfavourable changes to estimated sales deductions
  • Sensipar/Mimpara: $123 million, down 42%, hit by competition on unit demand, offset partially by favourable changes to estimated sales deductions and inventory
  • Blincyto: $94 million, up 36%, driven by higher unit demand
  • Evenity: $100 million, launched in the US and Japan in the first half of 2019 for the treatment of osteoporosis
  • Aimovig: $71 million, up 20%, with 46% volume gains in the quarter offset partially by lower net selling price as the company expanded patient access

Looking ahead:

Amgen reaffirmed its guidance of adjusted earnings of $14.85 to $15.60 per share on sales between $25 billion and $25.6 billion for 2020. Analysts are projecting earnings of $15.38 per share on revenue of $25.25 billion.

What analysts said:

Credit Suisse analyst Evan Seigerman remarked "as we expected, Amgen’s results were strong, but we did not get a guidance raise." Still, he noted "we are encouraged with the progress and minimal disruption from COVID-19 across the business."

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