Amgen's third-quarter earnings report revealed a robust 23% year-over-year revenue growth, reaching $8.5 billion, although slightly below the consensus estimate of $8.51 billion. The company's performance was bolstered by strong sales of key products, particularly in oncology and hyperlipidemia, while investors eagerly await Phase II data for the obesity candidate MariTide. Non-GAAP earnings-per-share (EPS) was $5.58, which beat the analyst forecasted figure of $5.13.
Key Growth Drivers
CEO Robert Bradway attributed the strong Q3 performance to 10 products delivering double-digit sales growth. Blincyto, a therapy for acute lymphoblastic leukemia, saw a 49% surge in sales, bringing in $327 million, surpassing estimates by 19%. Repatha, a hyperlipidemia medicine, experienced a 40% sales increase, generating $567 million, 6% ahead of expectations. Lumakras, an oral non-small cell lung cancer pill, also demonstrated strong growth, jumping 88% year-over-year to $98 million in global sales, exceeding projections by 18%.
Performance Lags
However, some of Amgen's top-selling assets faced challenges. Tepezza, a thyroid eye disease therapy, generated $488 million, missing expectations by 4%, while Prolia, an osteoporosis injection, secured nearly $1.05 billion, 6% lower than analysts' forecasts. Enbrel, an autoimmune medication, experienced a 20% drop in sales, with revenues of $825 million, falling 10% short of the consensus.
MariTide's Anticipated Data
Despite the mixed performance of existing products, much attention is focused on MariTide, Amgen's obesity candidate. Executives indicated that the Phase II study is progressing well and that they are planning to launch a broad Phase III program targeting obesity, related conditions, and type 2 diabetes. Data from the Phase II study are expected later this year.
Analysts remain keenly interested in MariTide's potential. Mizuho analyst Salim Syed noted that there was "not much new learned" about Amgen's obesity portfolio, while Jefferies analyst Michael Yee emphasized that investors are willing to "look past" the Q3 results "if the obesity data is good," highlighting MariTide's "long-term blockbuster potential."
Future Outlook
However, Yee cautioned that "if data is messy, investors will be more frustrated," given that Amgen's business will be "under some pressure" in 2025, including the impending entry of Prolia biosimilars. The success of MariTide is therefore seen as crucial for Amgen's continued growth and market position.
