While Amgen’s third-quarter financial results on Wednesday were “somewhat uneventful,” investors continue to be focused on the highly anticipated MariTide Phase II results slated for late 2024, according to BMO Capital Markets analyst Evan Seigerman.
Amgen released its third-quarter earnings report on Wednesday, revealing an overall solid performance in Q3 despite misses by some of its key products.
The company’s revenues in the quarter came in at $8.5 billion, representing 23% year-over-year growth. Amgen’s total revenues were broadly in line—if not slightly behind—the consensus estimate of $8.51 billion. Non-GAAP earnings-per-share (EPS) was $5.58, which beat the analyst forecasted figure of $5.13.
Amgen CEO Robert Bradway in an investor call credited its strong Q3 performance on 10 products, which delivered “double-digit or better sales growth.”
Among its key growth drivers was the acute lymphoblastic leukemia therapy Blincyto, which surged 49% year-over-year to bring in $327 million in the quarter, and beating the consensus estimate by 19%. Meanwhile, Repatha saw a 40% jump in sales compared to the same period last year. The hyperlipidemia medicine brought in $567 million in Q3, coming 6% ahead of analyst expectations.
The oral non-small cell lung cancer pill Lumakras also had strong growth in the quarter, jumping 88% year-over-year to hit global sales of $98 million. Lumakras beat the Wall Street consensus, surpassing projections by 18%.
By contrast, Amgen’s top-selling assets Tepezza and Prolia had a largely disappointing Q3, with the thyroid eye disease therapy generating $488 million in the quarter—missing the consensus expectation by 4%-- while the osteoporosis injection secured nearly $1.05 billion, 6% lower than analysts’ forecast. Sales of the autoimmune medication Enbrel dropped 20% in the quarter with revenues of $825 million, which also fell 10% short of the consensus.
BMO Capital Markets analyst Evan Seigerman in an investor note called Wednesday’s results “somewhat uneventful,” marked by “limited details” for the Amgen’s highly anticipated obesity candidate MariTide.
Executives on the investor call only revealed that the MariTide Phase II study is “progressing well” and that they are currently planning to “launch a broad Phase III program” for the candidate, targeting obesity and related conditions as well as type 2 diabetes. Data from MariTide’s Phase II study are expected “later this year,” according to Bradway.
After the call, Mizuho analyst Salim Syed in an investor note said that there was “not much new learned” about the the company’s obesity portfolio, pointing out that Amgen provided only “incremental points” regarding its development plans in this space. “Management again alluded to a ‘differentiated profile,’ but no additional [details] of substance were really provided,” even in the Q&A portion of the call, according to Syed.
For Jefferies analyst Michael Yee, a lot is riding on Amgen’s impending MariTide readout. Yee called the company’s Q3 results “ho-hum” but noted that investors are willing to “look past this … if the obesity data is good.” The focus for MariTide, according to Yee, is on its “long-term blockbuster potential.”
However, “if data is messy, investors will be more frustrated,” given that Amgen’s business will be “under some pressure” in 2025, including the impending entry of Prolia biosimilars, Yee wrote.
