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Amgen(AMGN) - 2025 Q1 - Earnings Call Transcript
AMGNAmgen(AMGN)2025-05-01 20:30

Financial Data and Key Metrics Changes - Revenue grew 9% year over year, reaching 8.1billion,withvolumegrowthof148.1 billion, with volume growth of 14% reflecting increased patient demand for innovative medicines [4][49] - Non-GAAP operating expenses rose 4%, with R&D expenses increasing by 12% year over year [50] - Non-GAAP operating margin was 45.7%, above previous guidance due to timing of R&D spending [50] Business Line Data and Key Metrics Changes - General Medicine saw Repatha sales increase by 27% year over year, generating 656 million in Q1 [18] - Rare Disease portfolio grew 3% year over year, delivering 1billioninsales,withTEPEZZAandKRYSTEXXAimpactedbyU.S.wholesalerinventorychanges[23]−Oncologyportfoliogeneratedover1 billion in sales, with TEPEZZA and KRYSTEXXA impacted by U.S. wholesaler inventory changes [23] - Oncology portfolio generated over 2 billion in sales, growing 10% year over year, driven by the bispecific T cell engager platform [28] Market Data and Key Metrics Changes - U.S. product sales grew 14%, with 14 products delivering double-digit growth [17] - Repatha sales outside the U.S. increased by 29% year over year, reaching 442million[21]−EvenitysalesintheU.S.grew36442 million [21] - Evenity sales in the U.S. grew 36% year over year, with Prolia sales reaching nearly 1.1 billion [22][23] Company Strategy and Development Direction - The company is focused on addressing large underserved patient populations with multiple products, particularly in general medicine and rare diseases [5][6] - Continued investment in manufacturing and R&D, with nearly 5billioninvestedinU.S.capitalprojectssince2017[14][58]−Thecompanyaimstomaintainleadershipinbiosimilarsandinnovativetherapieswhilenavigatingpotentialtariffandtaxchanges[13][58]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedoptimismaboutthefuture,citingstrongpatientdemandandongoingproductlaunches[16]−Thecompanyiswell−positionedtodeliverinnovationandgrowth,despiteoperatinginavolatileenvironment[16]−Managementreaffirmed2025revenueguidanceof5 billion invested in U.S. capital projects since 2017 [14][58] - The company aims to maintain leadership in biosimilars and innovative therapies while navigating potential tariff and tax changes [13][58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong patient demand and ongoing product launches [16] - The company is well-positioned to deliver innovation and growth, despite operating in a volatile environment [16] - Management reaffirmed 2025 revenue guidance of 34.3 billion to 35.7billionandnon−GAAPEPSguidanceof35.7 billion and non-GAAP EPS guidance of 20 to 21.2[54]OtherImportantInformation−Thecompanygenerated21.2 [54] Other Important Information - The company generated 1 billion in free cash flow in Q1, reflecting operational momentum [51] - The FDA granted breakthrough therapy designation for blinatumomab for subcutaneous treatment of B-ALL [11][46] - The company is advancing multiple Phase 3 studies across various therapeutic areas, including obesity and rare diseases [36][42] Q&A Session Summary Question: What should be expected at ADA regarding Meritide? - Management highlighted strong efficacy and tolerability data from Phase II studies, with a focus on mechanistic insights and ongoing Phase III trials [62][64] Question: What is the commercial strategy for Aplisna in IgG4? - The company is excited about being the first approved therapy for IgG4, with a focus on engaging rheumatologists and leveraging its experience in autoimmune diseases [68][70] Question: How does the company view competition from oral obesity medications? - Management expressed confidence in Meritide's efficacy and tolerability, noting that while oral medications may enter the market, Meritide's unique dosing schedule provides a competitive advantage [80][84] Question: How is Repatha performing against competitors like Lecvio? - Management acknowledged competition but emphasized Repatha's strong profile and ongoing efforts to improve access and affordability for patients [88][90] Question: What is the expected uptake of Tableau following the Q code implementation? - The company reported positive reception of PABLUE among retina specialists and is working on contracting with larger groups [95] Question: How is the company addressing payer dynamics in the obesity market? - Management is focused on ensuring broad access to obesity medications and is monitoring recent changes in the payer environment [99]