Amgen(AMGN) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Amgen reported second quarter revenues of $8.4 billion, a 20% increase year-over-year, marking the highest quarterly revenue in the company's history, achieved with 26% volume growth [7][39] - Non-GAAP operating margin was 48.2% of product sales, with total non-GAAP operating expenses increasing 30% year-over-year [40] - Free cash flow for the quarter was$ 2.2 billion, a decrease of $3.8 billion from the previous year, primarily due to the timing of tax payments [41] Business Line Data and Key Metrics Changes - General Medicine portfolio saw sales growth of 20% year-over-year, with Repatha sales increasing 25% to$ 532 million [11][12] - Inflammation product TEZSPIRE sales grew 76% year-over-year to $234 million [14] - Oncology products collectively grew 12% year-over-year, with BLINCYTO sales increasing 28% to$ 264 million [17][19] Market Data and Key Metrics Changes - U.S. sales of EVENITY increased 39% year-over-year to $391 million, with significant growth in Japan as well [13] - Rare disease portfolio delivered over$ 1.1 billion in sales, with TEPEZZA sales at $479 million, reflecting 8% year-over-year growth [20][22] - Biosimilars sales remained stable year-over-year, with upcoming launches expected to drive future growth [16] Company Strategy and Development Direction - Amgen is focused on expanding its pipeline with over a dozen significant milestones anticipated in 2024, including the launch of MariTide for obesity and related conditions [8][10] - The company is investing in manufacturing capacity and digital capabilities to support its innovative pipeline [42][43] - Strategic focus on rare diseases and expanding access to therapies like TEPEZZA and UPLIZNA is a key part of the growth strategy [21][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth despite market volatility, emphasizing the importance of innovative medicines [6][39] - The company anticipates mid-single-digit growth in revenues for the fourth quarter compared to Q3, with a full-year revenue projection of$ 32.8 billion to $33.8 billion [44] - Management highlighted the ongoing integration of Horizon and expected synergies to enhance operational efficiency [41][42] Other Important Information - Amgen received accelerated approval for IMDELLTRA for small cell lung cancer, marking a significant advancement in its oncology portfolio [8][26] - The company is actively pursuing international expansion for several products, including TEPEZZA and UPLIZNA [21][22] Q&A Session Summary Question: Insights on UPLIZNA and MINT study data expectations - Management expressed excitement about UPLIZNA's performance and the potential to liberate patients from steroids, with results expected in the second half of the year [47][48] Question: Enbrel negotiations with CMS and market impact - Management noted that Enbrel continues to perform well despite competition, and the CMS price negotiation process has concluded [53][54] Question: Positioning of MariTide in the obesity market - Management remains confident in MariTide's differentiated profile and its potential to address unmet needs in obesity and related conditions [56][58] Question: Timing for MariTide Phase III program initiation - Management indicated that they are focused on completing the Phase II trial before moving to Phase III, without providing specific dates [74]