Amgen Announces Q2 2024 Financial Results

Amgen, headquartered in Thousand Oaks, California, reported a significant financial performance for the second quarter of 2024. For this period, the biopharmaceutical company saw a 20% increase in total revenues, reaching $8.4 billion compared to the same quarter in 2023. This growth was largely driven by a 20% rise in product sales, with a 26% volume growth slightly offset by a 3% decrease in net selling price. Excluding the sales from the Horizon Therapeutics acquisition, Amgen’s product sales grew by 5%, underpinned by a 10% increase in volume.

Twelve of Amgen's products reported double-digit sales growth, including notable drugs like Prolia® (denosumab), EVENITY® (romosozumab-aqqg), Repatha® (evolocumab), TEZSPIRE® (tezepelumab-ekko), and TAVNEOS® (avacopan). Rare disease products contributed $1.1 billion to the sales, spearheaded by TEPEZZA® (teprotumumab-trbw) and KRYSTEXXA® (pegloticase).

Despite the revenue growth, Amgen’s GAAP earnings per share (EPS) fell 46% from $2.57 to $1.38, influenced by higher operating expenses, including amortization from Horizon-acquired assets. GAAP operating income also decreased from $2.7 billion to $1.9 billion, while the operating margin dropped to 23.7%. On a non-GAAP basis, EPS saw a minor decline of 1% to $4.97, with operating income increasing from $3.5 billion to $3.9 billion.

Amgen’s free cash flow for the second quarter of 2024 was $2.2 billion, down from $3.8 billion the previous year. This reduction was mainly due to the timing of tax payments. The company declared a dividend of $2.25 per share for the second quarter, a 6% increase year-over-year, and reduced its debt by $1.4 billion during the same period.

In terms of product sales performance:
- Repatha® sales increased 25% to $532 million.
- EVENITY® sales rose 39% to $391 million.
- Prolia® sales grew 13% to $1.2 billion.

In the oncology segment:
- BLINCYTO® sales surged 28% to $264 million.
- Vectibix® sales increased 9% to $270 million.
- KYPROLIS® sales rose 9% to $377 million.

In the inflammation segment:
- TEZSPIRE® sales grew 76% to $234 million.
- Otezla® sales decreased 9% to $544 million.

In the rare disease category, apart from TEPEZZA® and KRYSTEXXA®, UPLIZNA® (inebilizumab-cdon) generated $92 million in sales. TAVNEOS® saw a 137% increase in sales year-over-year, reaching $71 million.

Established products such as EPOGEN® and Aranesp® saw a 21% decline in sales to $591 million, attributed to unfavorable changes in estimated sales deductions and volume declines.

Amgen's operating expenses increased by 51% on a GAAP basis, primarily due to higher costs related to the Horizon acquisition. Research and Development (R&D) expenses climbed 30%, reflecting higher spending in later-stage clinical programs and early pipeline research. Selling, General, and Administrative (SG&A) expenses also rose by 38%, driven by investments in commercial brands and the inclusion of Horizon.

For 2024, Amgen expects total revenues to range between $32.8 billion and $33.8 billion. The company projects GAAP EPS to be between $6.57 and $7.62, with a tax rate of 6.0% to 7.5%. On a non-GAAP basis, EPS is anticipated to be between $19.10 and $20.10, with a tax rate between 15.0% and 16.0%. Capital expenditures are expected to be approximately $1.3 billion, with share repurchases not exceeding $500 million.

In summary, Amgen demonstrated robust revenue growth driven by strong product sales, despite facing higher operational costs and a decrease in net income. The company's strategic focus on innovative medicines and a balanced portfolio continues to position it for sustainable long-term growth.

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