Amgen's Q2 revenue up 5% as pandemic expected to limit sales through 2021

Headline results for the second quarter:

  • Revenue: $6.5 billion, up 5%
  • Product sales: $6.1 billion, up 3%
  • Profit: $464 million, down 74%

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

What the company said:

Amgen CEO Robert Bradway said "we achieved solid, volume-driven growth in the quarter as our business recovered from the effects of the [COVID-19] pandemic." However, the company noted that patient visits and lab test procedure trends remain below pre-COVID-19 levels, even though they "continued to improve" throughout the three-month period.

Still, the drugmaker highlighted double-digit volume growth across a number of its products, including Prolia and Repatha, as well as the biosimilars Mvasi and Kanjinti. Further, it noted that its drug Lumakras (sotorasib), recently granted an accelerated approval as the first treatment for patients with KRAS-mutated non-small-cell lung cancer, has been "well received" by the oncology community, and "unaided awareness among oncologists has increased significantly since launch."

Meanwhile, Amgen said the steep decline in its quarterly profit was driven by a write-off of $1.5 billion in acquired in-process R&D associated with its takeover of Five Prime Therapeutics completed this past April.

Other results:

  • Enbrel: $1.1 billion, down 8%, primarily driven by lower net selling price and unfavourable changes to estimated sales deductions
  • Prolia: $814 million, up 24%, as new and repeat patient volumes continued to recover from the COVID-19 pandemic
  • Otezla: $534 million, down 5%, also driven by unfavourable changes to estimated sales deductions and lower net selling price
  • Xgeva: $488 million, up 12%, showing recovery from earlier effects of the pandemic
  • Neulasta: $486 million, down 18%, hit by declines in both net selling price and volume
  • Aranesp: $367 million, down 5%, impacted by competition
  • Mvasi: $294 million, up 71%, achieving "strong" volume growth
  • Repatha: $286 million, up 43%, but missing estimates of $299 million, with volume growth partially offset by lower net selling price due to more Medicare Part D patients receiving the PCSK9 inhibitor and entering the coverage gap
  • Kyprolis: $280 million, up 11%, boosted by higher volumes, with Amgen anticipating continued growth from Kyprolis use in combination with CD38 antibodies "for the remainder of the year"
  • Kanjinti: $156 million, up 27%, primarily driven by volume growth
  • Evenity: $131 million, up 30%, with US sales nearly doubling year-over-year to $79 million as the company focuses on new patient activation
  • Epogen: $130 million, down 19%, driven by volume declines and lower net selling price resulting from a contractual commitment with DaVita
  • Blincyto: $108 million, up 16%, benefitting from broader adoption in the community hospital setting
  • Amgevita: $107 million, up 73%, boosted by volume growth
  • Aimovig: $82 million, down 16%, falling short of the $95 million projected by analysts, with the migraine drug impacted by lower net selling price and unfavourable changes to estimated sales deductions

Looking ahead:

For the full year, Amgen reaffirmed that it expects adjusted earnings of $16 to $17 per share on revenue of $25.8 billion to $26.6 billion. Still, it says "the cumulative decrease in diagnoses over the course of the pandemic has suppressed the volume of new patients starting treatment, which we expect to continue to impact our business during the second half of the year."

Pipeline updates:

Amgen disclosed that a dose escalation study of its anti-FLT3/CD3 BiTE antibody AMG 427 has paused enrollment of patients with acute myeloid leukaemia, but did not give a reason. It also noted that pavurutamab has resumed enrollment. A Phase I trial of the BCMA-targeting BiTE molecule was paused earlier this year to discuss protocol modifications to optimise safety monitoring and mitigation with the FDA.

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