Amgen(US:AMGN)2023-06-14 20:29Summary of Amgen Inc. Conference Call Company Overview - Company: Amgen Inc. (NASDAQ: AMGN) - Event: Goldman Sachs 44th Annual Global Healthcare Conference - Date: June 14, 2023 - Participants: Robert Bradway (Chairman and CEO), Salveen Richter (Goldman Sachs) Key Points Industry Context - The healthcare and biopharma sectors are experiencing significant regulatory scrutiny, particularly regarding mergers and acquisitions, as evidenced by the FTC's move to block Amgen's acquisition of Horizon Therapeutics [2][3][4]. Acquisition of Horizon Therapeutics - Amgen remains optimistic about the acquisition, asserting that there are no anti-competitive issues that should prevent the merger [3][4]. - The company is preparing for a hearing in autumn 2023 to present its case against the FTC's concerns [3][6]. - Amgen expects the deal to close by mid-December 2023, pending the outcome of the hearing [5][6]. TEPEZZA Sales Performance - TEPEZZA sales have been weaker than anticipated, but Amgen remains confident in the product's potential and is actively working to expand its market presence [9][10][12]. - Data shows a significant benefit of TEPEZZA in chronic disease patients, with a 62% efficacy rate compared to 7% for placebo [12]. Biosimilars Business - Amgen has successfully launched AMJEVITA, a biosimilar, and is positioned as a leader in the biosimilars market [14][15]. - The company has launched six biosimilars and plans to launch five more, expecting to double its biosimilars business compared to 2021 levels [15][17]. - Amgen emphasizes the importance of being among the first to launch biosimilars to capture market share [14][16]. Hematology/Oncology Portfolio - The hem/onc business is performing well, driven by strong data supporting the efficacy of its products, particularly BLINCYTO [25][26]. - BLINCYTO is noted for its potential to improve outcomes in leukemia patients, and the company is excited about its subcutaneous formulation [26][27]. - Other products in the portfolio, such as Vectibix and KYPROLIS, are also showing strong performance [27]. Long-term Guidance and Growth - Amgen has reiterated its long-term guidance, citing strong growth in in-line products and international markets [30][32]. - The company reported a 20% volume growth in Europe and 35-36% in the Japan-Asia region [32]. - Amgen is optimistic about its pipeline, including potential breakthroughs in cancer therapies and treatments for cardiovascular diseases [33][54]. Challenges and Regulatory Environment - The Inflation Reduction Act is viewed negatively by Amgen, as it may hinder innovation and affect patient access to new therapies [46][47]. - Price pressure in the pharmaceutical industry is expected to continue, necessitating operational efficiency [57][58]. Innovation and AI Integration - Amgen is leveraging AI and machine learning to enhance its research capabilities and improve drug development processes [60][62]. - The company is focused on using human genetic data to inform its drug development strategies [61]. Capital Allocation Strategy - Amgen's capital allocation strategy includes investing in innovation, returning capital to shareholders, and paying down debt incurred from the Horizon acquisition [64]. Additional Insights - Amgen is committed to addressing unmet medical needs, particularly in oncology and rare diseases, and is excited about the potential of its innovative therapies [52][54]. - The company is adapting to regulatory changes and market dynamics while maintaining a focus on long-term growth and patient care [48][49].