Amgen reported Thursday that its recently launched biosimilar version of Johnson & Johnson's autoimmune drug Stelara generated $150 million in sales during the first quarter of 2024, underscoring the growing importance of the company's biosimilar portfolio to its overall business strategy.
During Amgen's quarterly earnings call, Commercial Chief Murdo Gordon revealed that the company's biosimilar products collectively recorded $735 million in sales, representing approximately 9% of Amgen's total revenue. These biosimilar sales increased by 35% compared to the same period last year.
"Our biosimilars business continues to contribute meaningfully to our long-term growth," stated CEO Robert Bradway during the call, highlighting the strategic value of the company's investment in this area.
Biosimilar Portfolio Performance
Amgen's biosimilar portfolio is showing mixed results across different products. While the Stelara biosimilar has demonstrated strong initial performance, other products are experiencing varying levels of success. The company's Avastin biosimilar performed particularly well, booking $179 million in sales during the quarter. In contrast, its Humira biosimilar has struggled to gain significant market traction.
The company recently expanded its biosimilar offerings with the launch of a copycat version of Regeneron's eye drug Eylea. Additionally, Amgen is preparing to market a biosimilar of AstraZeneca's rare disease treatment Soliris, with an expected launch before mid-summer 2024.
Strategic Differentiation in the Market
Amgen stands nearly alone among large pharmaceutical companies in its substantial commitment to biosimilar development and commercialization. This strategic focus has proven beneficial, helping to bolster the company's revenues at a time when its own branded products face increasing competition from biosimilars developed by other manufacturers.
The company's investment in biosimilars continues to grow. Amgen currently has Phase 3 trials underway for biosimilar versions of checkpoint inhibitors that have transformed cancer treatment over the past decade. These include competitors to Bristol Myers Squibb's Opdivo and Merck & Co.'s Keytruda, both of which are scheduled to lose patent protection in 2028. However, the development of subcutaneous formulations of these drugs may present challenges to Amgen's biosimilar strategy.
Impact on Overall Business Performance
Notably, some of Amgen's biosimilar products are now outperforming certain high-profile medicines in its branded portfolio, including the targeted cancer drug Lumakras and newer offerings like Uplizna and Tavneos. This shift has intensified scrutiny of Amgen's pipeline of innovative drugs, particularly its obesity treatment MariTide.
MariTide has thus far fallen short of investor expectations, though upcoming data presentations at the American Diabetes Association meeting in June could potentially change market sentiment. Amgen has multiple late-stage trials of this treatment currently underway.
Financial Performance
Amgen reported overall sales of $7.9 billion in the first quarter, representing an 11% increase compared to the same period in 2023. This performance exceeded consensus analyst estimates, though shares declined approximately 2% in early trading following the announcement.
The strong performance of Amgen's biosimilar business demonstrates how strategic diversification can provide stability and growth opportunities, even as pharmaceutical companies navigate the complex dynamics of patent expirations and market competition in the biopharmaceutical sector.
