Amgen Inc. Reports Robust 2024 Growth Amid Challenges

Amgen Inc ((AMGN)) has held its Q4 earnings call. Read on for the main highlights of the call.

Amgen Inc.’s recent earnings call for 2024 painted a picture of robust growth and strategic advancements. The overall sentiment was positive, reflecting strong performance with significant growth in product sales, particularly in oncology and biosimilars. The successful integration of Horizon and robust financial results further underscore Amgen’s potential for continued growth. However, challenges such as the upcoming patent expiration for denosumab and anticipated price declines were noted as potential risks.

Strong Product Sales Growth

Amgen reported a remarkable increase in product sales, achieving an 11% year-over-year growth for the fourth quarter and a 19% growth for the full year. Ten products showed double-digit growth or better, with Repatha and EVENITY together growing 35% year-over-year, which highlights the company’s strong market presence and successful product strategies.

Innovative Oncology Portfolio

The company’s oncology portfolio, which includes key products like BLINCYTO and IMDELLTRA, generated nearly $8 billion in sales for the year, marking an 11% growth. This underscores Amgen’s solid footing in the oncology sector, driving significant revenue and reflecting successful innovation and market penetration.

Biosimilars Performance

Amgen’s biosimilar products saw significant success, with sales reaching $2.2 billion, a 16% increase year-over-year. Notably, the launch of PAVBLU, a biosimilar to EYLEA, generated $31 million in just nine weeks, demonstrating the company’s strong capability in the biosimilars market.

Successful Horizon Integration

The acquisition of Horizon has been a strategic success, being accretive to non-GAAP EPS for 2024. The integration is progressing well, with expected pretax cost synergies of $500 million by the third year post-acquisition, further solidifying Amgen’s financial and strategic growth.

Strong Financial Performance

Amgen’s financial results for 2024 were impressive, with total revenues reaching $33.4 billion, a 19% increase from the previous year, and generating $10.4 billion in free cash flow. These figures underline the company’s strong financial health and operational efficiency.

Denosumab Patent Expiration

One of the challenges highlighted was the upcoming patent expiration for denosumab, which is expected to result in revenue declines due to anticipated biosimilar competition. This presents a potential risk for Amgen’s future revenue streams.

Price Declines Across Portfolio

Amgen anticipates continued price declines across its portfolio in 2025, which could impact revenues. This is a common challenge in the pharmaceutical industry, requiring strategic planning to mitigate potential impacts.

Challenges with Early-Stage Obesity Assets

The company faces uncertainty with its early-stage obesity assets, with one asset not meeting the high bar for further development. This highlights the inherent risks in developing new pharmaceutical products.

Forward-Looking Guidance

Amgen’s guidance for 2025 is optimistic, with expected total revenues between $34.3 billion and $35.7 billion, and non-GAAP earnings per share between $20 and $21.20. The company anticipates continued growth driven by key products and strategic investments in its late-stage pipeline. Despite challenges such as the denosumab patent expiration and expected price declines, the guidance reflects confidence in sustained growth and innovation.

In conclusion, Amgen’s earnings call underscores a strong performance in 2024, with significant achievements in product sales and strategic initiatives. While challenges remain, particularly with patent expirations and price declines, the company’s forward-looking guidance suggests a confident outlook for 2025, driven by continued growth in key areas and strategic investments.