Amgen, a leading biotech company based in California, exceeded expectations with its quarterly financial results and raised its full-year outlook. The company reported a 12% increase in sales, which helped offset expenses related to the development of an experimental weight-loss drug called MariTide and a higher tax rate.
In the third quarter, Amgen’s revenue rose by 12% to $9.56 billion, surpassing analysts’ estimates of $8.97 billion. Adjusted earnings per share also increased by 1% to $5.64, compared to the average analyst forecast of $5.01. Mizuho analyst Salim Syed noted in a research note that the results were a “decent beat and raise,” with several products showing higher sales, although some of the gains were attributed to accounting changes.
Following the positive financial results, Amgen’s shares rose by 1% in after-hours trading to $299.50. Sales of the cholesterol-lowering drug Repatha increased by 40% to $794 million, driven by higher demand. However, sales of the arthritis drug Enbrel declined by 30% to $580 million due to a significant price drop influenced by changes in the U.S. Medicare health plan and hospital purchases.
Amgen also provided updates on its MariTide drug, stating that data from two key mid-stage studies are expected before the end of the year. These studies focus on testing MariTide in obese or overweight adults with or without type 2 diabetes, as well as its potential as a treatment for type 2 diabetes. The company has completed enrollment in two Phase 3 studies for similar patient populations. MariTide is an antibody linked to peptides that activate receptors for the appetite- and blood sugar-reducing hormone GLP-1 while blocking a second gut hormone called GIP.
Despite the positive sales growth, Amgen reported an 18% increase in adjusted operating expenses and a 31% jump in research and development costs. The company attributed a 4.8 percentage point increase in its tax rate to a change in product mix.
Looking ahead, Amgen raised its full-year outlook for adjusted earnings to $20.60 to $21.40 per share on revenue of $35.8 billion to $36.6 billion. Analysts have estimated earnings of $21.04 per share on revenue of $35.67 billion for 2025.
Overall, Amgen’s strong financial performance and promising pipeline of products position the company for continued growth and success in the biotech industry.
(Reporting By Deena BeasleyEditing by Bill Berkrot)
