Amgen's Q2 Performance: Mixed Results Amid Horizon Acquisition

Amgen reported a 1% decline in second-quarter profits due to higher expenses, despite a 20% revenue boost from acquiring Horizon Therapeutics. Adjusted earnings fell slightly short of estimates, and revenue slightly exceeded forecasts. Key drugs showed mixed performance. Investors watch the progress of Amgen's experimental weight-loss drug.

Biotechnology giant Amgen revealed on Tuesday that its second-quarter profit dipped by 1%, as increased expenses nullified a 20% surge in revenue following the October acquisition of Horizon Therapeutics, a rare disease drugmaker.

Adjusted earnings came in at $4.97 per share, just below analysts' average forecast of $5.00, according to LSEG data. Revenue for the quarter reached $8.39 billion, slightly above the $8.37 billion projected by analysts.

Cholesterol drug Repatha saw a sales increase of 25% to $532 million, while sales of the older rheumatoid arthritis drug Enbrel fell by 15% to $902 million. Chief Financial Officer Peter Griffith noted in an interview that twelve of the company's products achieved double-digit sales growth. Sales of Tepezza, Horizon's thyroid eye disease drug, increased by 7% to $479 million, and gout drug Krystexxa's sales rose 20% to $294 million. Excluding Horizon's drugs, Amgen's product sales grew by 5%.

Higher operating expenses, including costs associated with the Horizon deal, contributed to a 46% drop in quarterly net earnings to $1.38 per share. Investors are keenly focused on the development of Amgen's experimental weight-loss drug, MariTide. The company expects initial data from a mid-stage trial of the drug by late this year, as it prepares to launch a Phase 3 program targeting obesity and related conditions. Some analysts predict the weight-loss drug market could reach $130 billion annually by the early 2030s.

For the full year 2024, Amgen has raised the lower end of its revenue forecast to a range between $32.8 billion and $33.8 billion, up from a previous estimate of $32.5 billion. The adjusted earnings estimate for 2024 has also been narrowed, with a forecast profit of $19.10 to $20.10 per share, compared to an earlier view of $19.00 to $20.20 per share. Analysts expect 2024 earnings per share to be $19.51 on revenue of $33.1 billion.