Amgen Impresses With Q4 Earnings Beat, Analysts See Growth Ahead

On Tuesday, Amgen Inc AMGN reported fourth-quarter sales of $9.10 billion, up 11% year-over-year, beating the consensus of $8.9 billion.

• Product sales grew 11%, primarily driven by 14% volume growth. Excluding sales from the Horizon Therapeutics acquisition, product sales grew 10%, driven by 15% volume growth.
• Ten products delivered at least double-digit sales growth in the fourth quarter, including Repatha (evolocumab), Blincyto (blinatumomab), Tezspire (tezepelumab-ekko), Evenity (romosozumab-aqqg) and Tavneos (avacopan).
• The performance included $1.2 billion of sales from rare disease products, driven by several early-in-lifecycle medicines, including Tepezza (teprotumumab-trbw), Krystexxa (pegloticase), Uplinza (inebilizumab-cdon) and Tavneos.

Amgen reported adjusted EPS of $5.31, beating the consensus of $5.08.

In its earnings release, the company said the FDA placed a clinical hold on its Phase 1 study of AMG 513 for obesity.

“Robust growth in sales and earnings throughout 2024 reflects the momentum of our business. With strong performance globally, we are investing heavily in our rapidly advancing pipeline to deliver innovative therapies across our four therapeutic areas,” said Robert Bradway, chairman and chief executive officer.

Also Read: FDA Approves Amgen Treatment For Pretreated Colorectal Cancer With Certain Mutation

Guidance: Amgen expects fiscal year 2025 revenue of $34.3 billion—$35.7 billion versus a consensus of $34.5 billion. The company expects adjusted EPS of $20-$21.20, compared to a consensus of $20.88.

Goldman Sachs is encouraged by the quarter and the company’s growth prospects for 2025, which eases concerns about the stock.

Analyst Salveen Richter remains positive as the company continues to perform well, especially as investors recognize the value of MariTide in obesity and diabetes, along with upcoming approvals like Uplizna for IgG4-RD and gMG.

William Blair analyst Matt Phipps says the 2025 outlook mostly aligns with expectations, but R&D spending and operating margin forecasts highlight ongoing investment in late-stage drugs, particularly MariTide and olpasiran.

William Blair analyst writes, “We believe continued growth of key assets, including Repatha, Tezspire, Evenity, Blincyto, and Imdelltra, combined with three biosimilar launches in 2025, will offset headwinds from biosimilar launches of Prolia and Xgeva, providing top-line growth combined with meaningful clinical readouts in 2025…”

Price Action: AMGN stock is up 5.41% at $304.65 at last check Wednesday.

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