Amgen's profit dipped due to higher expenses related to new obesity drug, but revenue rose

From Investing.com: 2024-08-06 18:16:32

Amgen’s Q2 profit dipped 1% due to higher expenses related to its new obesity drug MariTide, but revenue rose 20% from Horizon Therapeutics acquisition. Amgen reported adjusted earnings of $4.97/share, just below analyst estimates. Cholesterol drug sales rose 25%, while Enbrel sales fell 15%. Shares fell 2% after hours.

Sales of Horizon’s Tepezza drug rose 7% to $479 million, while gout drug Krystexxa sales grew 20% to $294 million. Excluding Horizon’s drugs, Amgen’s product sales increased by 5%. Investors are eagerly awaiting data from MariTide’s mid-stage trial expected later this year.

Amgen is focusing on new obesity drug MariTide, with plans for human testing on another candidate by year-end. Some predict the weight-loss drug market to reach $130 billion annually by the early 2030s. Amgen increased its 2024 capital spending target to $1.3 billion and raised the lower end of its 2024 revenue outlook to $32.8 billion.

In 2024, Amgen predicts adjusted earnings of $19.10 to $20.10 per share, compared to analysts’ estimate of $19.51. Revenue outlook for 2024 was raised to a range of $32.8 billion to $33.8 billion, with an adjusted earnings forecast slightly narrower than previous expectations.



Read more at Investing.com: Amgen quarterly profit slips, obesity data on track for late 2024 By Reuters