Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Amgen Inc (AMGN, Financial) reported a 23% increase in third-quarter revenues, reaching $8.5 billion, with 10 products delivering double-digit or better sales growth.
- The company's innovative oncology portfolio saw a 17% sales growth, with products like BLINCYTO and IMDELLTRA showing strong performance.
- Amgen Inc (AMGN) is advancing its pipeline with potentially first-in-class or best-in-class medicines, including MariTide for obesity and type 2 diabetes.
- The rare disease portfolio delivered $1.2 billion in sales, growing 21% year-over-year, driven by products like TEPEZZA and UPLIZNA.
- TEZSPIRE showed a 67% year-over-year sales growth, indicating strong market adoption and potential for further expansion into COPD and other indications.
Negative Points
- Otezla sales decreased by 1% year-over-year, impacted by a 7% lower net selling price despite volume growth.
- Enbrel sales dropped 20% year-over-year, primarily due to unfavorable changes in estimated sales deductions and lower net selling prices.
- Amgen Inc (AMGN) faces increased competition in the Repatha segment outside the U.S., despite retaining category leadership.
- The company expects continued declining net selling prices for Enbrel, impacting future revenue.
- Non-GAAP operating expenses increased 27% year-over-year, largely driven by the addition of Horizon, impacting overall profitability.
Q & A Highlights
Q: The Phase II MariTide data clearly remains the key update into year-end. Can you help us understand what you will share with regard to this update in terms of actual data and also the Phase III developmental plan and timelines and when we might get an update from the other obesity programs?
A: Robert Bradway, CEO: We're excited about MariTide and have begun a Phase II study in type 2 diabetes. The trial is progressing well, and we expect to have data by the end of the year, which we will share with investors.
Q: You are getting a lot closer to kicking off a Phase III MariTide program. How do you think about the level of spend that will go into that undertaking? Also, have you seen the Phase II data in-house?
A: Robert Bradway, CEO: We expect a large global Phase III trial for MariTide in obesity-related conditions and type 2 diabetes. Our investment will reflect our belief in its differentiated profile. We are actively planning the program, and our existing antibody platform supports this initiative.
Q: Can you comment on your philosophy or thinking about the totality of the obesity portfolio given 133 is so far in Phase III, but the other things are early?
A: James Bradner, EVP, R&D: We're pleased with MariTide's progress and are focused on setting up a broad Phase III program. We are also developing additional medicines for obesity, including AMG 513, and are interested in both injectable and oral approaches.
Q: Can you provide more context on the path to growth for TEPEZZA and when you expect to see the impact of the sales team?
A: Vikram Karnani, EVP, Global Commercial Operations & Medical Affairs: TEPEZZA grew 8% year-over-year. We are focusing on both high and low CAS patients and have reorganized our field force to better reach these patients. We expect momentum to build over the next few quarters, and we are also preparing for an early 2025 launch in Japan.
Q: Can you confirm if the MariTide data disclosure will be a press release or at a conference? Also, for Phase III, will there be changes to the titration schedule used in Phase II?
A: Robert Bradway, CEO: We will share the data in the best interest of shareholders once available. James Bradner, EVP, R&D: Phase III planning is on track, and while we won't disclose dosing details today, it will be informed by the ongoing Phase II study.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
