Amgen Inc. (AMGN) 2024 Q2 Earnings Call Summary

Optimistic Highlights

• Strong Revenue Growth

  Second quarter revenues grew 20% to $8.4 billion, marking the highest quarterly revenue in Amgen's history.

• Product Sales Increase

  Sales of 12 products grew at least double digits, including Repatha, TEZSPIRE, EVENITY, TAVNEOS, and BLINCYTO.

• Pipeline Progress

  Received accelerated approval for IMDELLTRA for small cell lung cancer and approval for BLINCYTO in B-cell precursor acute lymphoblastic leukemia.

• Rare Disease Portfolio Success

  Rare disease delivered over $1.1 billion in Q2, with significant sales growth in TEPEZZA, KRYSTEXXA, UPLIZNA, and TAVNEOS.

• Research and Development Advancements

  Announced promising Phase III data for UPLIZNA in IgG4-related disease and received Breakthrough Therapy Designation for TEZSPIRE in COPD.

Pessimistic Highlights

• Otezla Sales Decline

  Otezla sales decreased 9% year-over-year in the second quarter, with challenges from a competitive dermatology market.

• Enbrel Sales Decrease

  Enbrel sales decreased 15% year-over-year, primarily due to lower net selling price.

Company Outlook

• Strong Long-term Growth Outlook

  Amgen remains confident in delivering attractive long-term growth, supported by innovative pipeline and in-market products.

• 2024 Revenue and Earnings Projection

  Expects 2024 total revenues in the range of $32.8 billion to $33.8 billion and non-GAAP earnings per share between $19.10 and $20.10.

• Investment in Innovation

  Non-GAAP R&D spending increased 30% year-over-year, with strategic investments in late-stage pipeline including MariTide and Horizon acquired programs.

Q & A Highlights

• Q: Can you talk about UPLIZNA's potential in myasthenia gravis? (Yaron Werber, TD Cowen)

  A: UPLIZNA shows remarkable activity, with a focus on reducing steroid use. Results for the MINT study in myasthenia gravis are expected in the second half of 2024. (Jay Bradner)

• Q: How are negotiations with CMS on Enbrel going? (Evan Seigerman, BMO Capital Markets)

  A: The process with CMS has concluded, with Enbrel continuing to perform well despite a competitive market. About 25% of Enbrel revenues come from Medicare Part D. (Murdo Gordon)

• Q: What are your thoughts on the positioning of MariTide in the obesity space? (Mike Yee, Jefferies)

  A: MariTide shows a differentiated profile, with confidence in addressing unmet medical needs in obesity and type 2 diabetes. Planning for a broad Phase III program. (Jay Bradner and Murdo Gordon)

• Q: Could you elaborate on the next obesity asset entering clinical development? (Gregory Renza, RBC Capital Markets)

  A: The next obesity asset is part of a strategy to explore both incretin and non-incretin approaches, aiming for differentiation and addressing unmet needs. (Jay Bradner)

• Q: When do you anticipate starting the Phase III program for MariTide? (Chris Raymond, Piper Sandler)

  A: Focused on completing the Phase II trial and moving into Phase III as swiftly as appropriate, without giving specific dates due to competitive intensity. (Bob Bradway)