Q1 2024 Amgen Inc Earnings Call Transcript
Key Points
- Amgen Inc (AMGN) reported strong sales growth of 22% year-over-year in the first quarter, driven by robust volume growth across its four therapeutic pillars.
- The company's newest pillar of growth, rare disease, contributed nearly $1 billion of sales in the quarter, up 14% compared to the previous year, highlighting significant upside potential.
- Amgen Inc (AMGN) is advancing a broad range of potential first-in-class medicines in its mid- and late-stage pipeline, including tarlatamab for small cell lung cancer and MariTide for obesity and related conditions.
- The integration of Horizon, including its people, products, and pipeline, is proceeding well, reflecting a strong fit between the organizations and contributing positively to growth.
- Amgen Inc (AMGN) is actively expanding its manufacturing capacity to support both clinical and commercial supply, ensuring readiness for future product launches and market demands.
- Despite overall strong performance, Enbrel sales decreased by 2% year-over-year in the first quarter, driven by volume decline.
- The company's non-GAAP operating expenses rose by 33%, reflecting significant investments in Horizon acquired products and other late-stage pipeline medicines, which could pressure profit margins if not managed effectively.
- Amgen Inc (AMGN) faces challenges in the inflammation business, as Otezla sales only increased by 1% year-over-year, affected by external factors like the Change Healthcare cybersecurity issue.
- The COURSE Phase IIa study of TEZSPIRE in COPD patients did not achieve statistical significance, which may affect its potential impact and market adoption in this indication.
- While Amgen Inc (AMGN) is making strides in its biosimilars portfolio, it experienced a 12% year-over-year growth in the first quarter, with challenges due to lower inventory levels and net selling price decline.
My name is Julianne, and I will be your conference facilitator today for Amgen's First Quarter 2024 Financial Results Conference Call. (Operator Instructions)
I would now like to introduce Justin Claeys, Vice President of Investor Relations. Mr. Claeys, you may now begin.
Thank you, Julianne. Good afternoon, and welcome to our first quarter 2024 earnings call. Bob Bradway will lead the call and be followed by a broader review of our performance by Jay Bradner, Murdo Gordon, Vikram Karnani and Peter Griffith.
Through the course of our discussion today, we will use non-GAAP financial measures to describe our performance and have provided appropriate reconciliations within the materials that accompany this call. We will also make some forward-looking statements, which are qualified by our safe harbor statement. And please note that actual results can vary materially. Over to you, Bob.
Okay. Thank you
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