Amgen is strategically focusing on new medicines and key acquisitions to drive growth, particularly with Tepezza for thyroid eye disease (TED) and MariTide for weight loss and diabetes.
Leveraging Tepezza for Growth
Amgen's $28 billion acquisition of Horizon Therapeutics in October 2023 brought Tepezza, the first and only FDA-approved treatment for TED. Despite initial market entry in 2020, Tepezza's potential was hampered by pandemic-related disruptions. Amgen aims to leverage its resources and marketing capabilities to expand Tepezza's reach, including international markets like Europe, Brazil, Japan, Canada, and Australia. Management anticipates these international launches will positively impact revenue growth starting next year.
MariTide: A Promising Candidate in Weight Loss and Diabetes
Amgen is also venturing into the rapidly growing weight loss market with MariTide, currently in Phase 2 development. Phase 1 studies demonstrated statistically significant weight loss, with patients maintaining weight loss for up to 150 days post-treatment. MariTide is also being investigated for treating diabetes, with further Phase 2 studies planned. Evaluate Pharma projects MariTide could generate $2.1 billion in revenue by 2030, potentially becoming Amgen's most significant launch in the next five years.
Expanding the Pipeline
Beyond Tepezza and MariTide, Amgen has a robust pipeline with over 30 Phase 3 programs. These include label expansions for existing drugs like Lumakras and Amjevita (a rheumatoid arthritis medicine), biosimilars for products facing patent expiration (such as Bristol Myers Squibb's Opdivo), and novel therapies like dazodalibep for Sjögren's syndrome. Dazodalibep is in Phase 3 studies as a potential treatment for Sjögren's syndrome, a rare autoimmune condition with symptoms like dry eyes and mouth, for which there are currently no FDA-approved treatments.
Financial Performance and Future Outlook
Amgen's Q2 2024 revenue grew 20% year-over-year to $8.4 billion, driven by the Horizon Therapeutics acquisition. Excluding Horizon, revenue grew 5%. Tezspire, an asthma treatment approved in December 2021, showed strong growth with Q2 revenue of $234 million, a 76% increase year-over-year. Amgen's strategic focus on key products and pipeline advancements positions the company for continued growth. Additionally, Amgen offers a solid dividend yield of 2.68%, significantly higher than the S&P 500 average of 1.32%, with a 269% increase in payouts over the past decade.
