Amgen Announces Q1 2024 Financial Results

Amgen, a biotechnology company based in Thousand Oaks, California, reported strong financial results for the first quarter of 2024. The company experienced significant revenue growth, driven by the performance of its innovative products and the advancement of new medicines in its pipeline.

For the first quarter, Amgen’s total revenues saw a 22% increase, reaching $7.4 billion compared to the same period in 2023. This rise was primarily due to a 25% growth in product sales volume. Notably, ten of Amgen’s products achieved double-digit volume growth, including Repatha®, TEZSPIRE®, EVENITY®, BLINCYTO®, and TAVNEOS®. In the U.S., the volume surged by 29%, while international markets saw a 17% increase.

A significant contributor to this growth was the $914 million in sales from Amgen's acquisition of Horizon Therapeutics. Key products from this acquisition, such as TEPEZZA®, KRYSTEXXA®, and UPLIZNA®, demonstrated strong performance. Excluding Horizon’s sales, Amgen’s product sales still grew by 6%.

However, the company reported a GAAP loss per share of $0.21 for the first quarter of 2024, down from earnings per share of $5.28 in the same period of 2023. This decline was attributed to a mark-to-market loss on the company’s BeiGene equity investment and increased operating expenses, including higher amortization and costs associated with the Horizon acquisition. Despite these factors, higher revenues partially offset these expenses.

GAAP operating income decreased from $1.9 billion to $1.0 billion, and the GAAP operating margin fell by 19 percentage points to 13.9%. On a non-GAAP basis, earnings per share slightly decreased from $3.98 to $3.96, while non-GAAP operating income rose from $2.8 billion to $3.1 billion. The non-GAAP operating margin decreased by 5.1 percentage points to 43.2%.

Cash flow for the quarter also saw a decline, with the company generating $0.5 billion, down from $0.7 billion in the first quarter of 2023. This reduction was largely due to an $800 million tax deposit.

In terms of product sales performance, Repatha® led the way in general medicine with a 33% year-over-year increase, bringing in $517 million. Prolia® and EVENITY® also showed strong performance, with sales increases of 8% and 35%, respectively.

In oncology, BLINCYTO® sales grew by 26% to $244 million, driven by its widespread use in treating B-cell precursor acute lymphoblastic leukemia (B-ALL). Vectibix® and KYPROLIS® also saw increases in sales, while XGEVA® sales rose by 5% to $561 million.

Inflammation products like TEZSPIRE® saw an impressive 80% increase in sales year-over-year, reaching $173 million, largely due to its effectiveness in treating severe asthma. Otezla® and Enbrel® had modest sales increases, while AMJEVITA® saw international growth.

The rare disease segment benefitted significantly from Horizon Therapeutics’ products, with TEPEZZA® generating $424 million in sales and KRYSTEXXA® bringing in $235 million. UPLIZNA® and TAVNEOS® also showed strong performance.

Established products like EPOGEN®, Aranesp®, Parsabiv®, and Neulasta® faced a 19% decline in sales year-over-year, attributed to changes in estimated sales deductions and volume declines.

Operating expenses increased by 54% on a GAAP basis, with a significant rise in cost of sales, research & development (R&D) expenses, and selling, general & administrative (SG&A) expenses. The company’s GAAP operating margin decreased by 19 percentage points to 13.9%. On a non-GAAP basis, total operating expenses rose by 33%, with similar increases in R&D and SG&A expenses. The non-GAAP operating margin fell by 5.1 percentage points to 43.2%.

Amgen’s 2024 guidance includes expected total revenues between $32.5 billion and $33.8 billion. On a GAAP basis, the company forecasts earnings per share to be between $7.15 and $8.40, with a tax rate ranging from 9.5% to 11.0%. On a non-GAAP basis, EPS is expected to be between $19.00 and $20.20, with a tax rate between 15.0% and 16.0%. Capital expenditures are projected to be approximately $1.1 billion, and share repurchases are not to exceed $500 million.

Amgen continues to advance its product pipeline, with significant progress in various clinical trials across general medicine, oncology, inflammation, and rare diseases. Key updates include studies on Repatha, TEZSPIRE, and the promising Phase 2 and 3 trials for other innovative treatments.

Overall, Amgen remains committed to delivering long-term growth through its robust portfolio and innovative research, despite the challenges posed by increased operational costs and market pressures.