Amgen takes Q3 profit hit after scrapping prostate cancer drug
31 Oct 2023
Phase 2AcquisitionPhase 1Drug ApprovalClinical Result
Headline results for the third quarter:
Revenue: $6.9 billion, up 4%
Product sales: $6.5 billion, up 5%
Profit: $1.7 billion, versus $2.1 billion in the year-ago period
Note: All changes are versus the prior-year period unless otherwise stated
What the company said:
The company said earnings were negatively impacted by an impairment charge of roughly $650 million following a decision to discontinue development of AMG 340, a PSMAxCD3 bispecific T-cell engager (BiTE) it was evaluating for prostate cancer (see more below).
Meanwhile, the company reported an overall 11% volume growth, primarily driven by double-digit gains for Blincyto, Evenity, Repatha, and Nplate. US volumes also increased by 11%, while ex-US volumes grew by 12%, with the Asia Pacific region experiencing 27% growth in volume.
Other results: Enbrel: $1 billion, down 6%
Prolia: $986 million, up 14%
Otezla: $567 million, down 10%, with demand in the quarter continuing to be impacted by free drug programmes for newly launched competition
Xgeva: $519 million, up 5%
Repatha: $406 million, up 31%, with US sales up 29% to $183 million
Kyprolis: $349 million, up 10%
Aranesp: $323 million, down 10%
Evenity: $307 million, up 53%
Blincyto: $220 million, up 55%
Mvasi: $213 million, up 2%
Tezspire: $161 million, benefitting from the introduction of a self-administered, pre-filled, single-use pen approved by the FDA earlier this year
Neulasta: $124 million, down 50%
Aimovig: $94 million, down 12%
Epogen: $50 million, down 63%
Kanjinti: $20 million, down 72%
Looking ahead:
Amgen is now anticipating sales this year will come in between $28 billion and $28.4 billion, up from an earlier estimate of between $26.6 billion to $27.4 billion. It also lifted the lower end of its profit outlook by $0.40 and now expects to earn $18.20 to $18.80 per share.
Pipeline update:
Amgen said it ended a Phase I dose-escalation study of AMG 340 in metastatic castration-resistant prostate cancer. The company had acquired the drug via its acquisition of Teneobio in 2021 for up to $2.5 billion.
This marks the latest in several BiTE candidates Amgen has discontinued, including the BCMA-targeting molecule pavurutamab last year. The company continues to develop its DLL3-targeting BiTE drug tarlatamab, having recently reported that it produced an objective response rate (ORR) of 40% in patients with advanced stage small-cell lung cancer who had failed two or more prior lines of treatment.
Meanwhile, Amgen is testing the weight-loss drug AMG 133, also known as maridebart cafraglutide. The multispecific molecule, which inhibits GIP and GLP-1 receptors, is being evaluated in a Phase II study in overweight or obese adults with or without type 2 diabetes, with top-line results due in "late 2024."
What analysts said:
Analysts are looking ahead to the company's efforts in obesity. "Management…noted that they have a suite of preclinical obesity assets that they plan to bring forward 'over the next few years,'" remarked Salim Syed of Mizuho Securities.
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