Amgen's (NASDAQ:AMGN) third-quarter 2023 financial results revealed a 4% increase in total revenues and a 6% rise in earnings per share compared to the previous year, according to the company's recent earnings call. This growth was driven by strong volume growth of 11% globally, with seven medicines achieving record sales. The company also highlighted its recent acquisitions of Horizon Therapeutics (NASDAQ:HZNP) and ChemoCentryx (NASDAQ:CCXI), which have fortified Amgen's rare disease business.
Key takeaways from the call include:
- Amgen reported increased sales and growth in various product lines, including Repatha, BLINCYTO, Enbrel, Tezspire, Tavneos, and Amjevita.
- The company raised its revenue guidance for 2023 to $28.0 billion to $28.4 billion and revised its non-GAAP earnings per share range to $18.20 to $18.80.
- Amgen is advancing its pipeline of innovative medicines, particularly in oncology, with several potential first-in-class assets and ongoing clinical trials.
- The company's rare disease portfolio delivered $945 million in sales and showed positive indicators for future growth.
- Capital expenditures for 2023 are projected to be approximately $950 million, up from the previous guidance of $925 million.
During the call, Murdo Gordon, the Executive Vice President of Global Commercial Operations at Amgen, provided an overview of the company's financial performance and discussed the performance of specific products within different therapeutic areas. Notably, Repatha saw a 31% increase in sales, and BLINCYTO experienced 55% sales growth.
Amgen's rare disease portfolio, bolstered by the acquisitions of Horizon Therapeutics and ChemoCentryx, delivered $945 million in sales, indicating positive future growth. The company also highlighted progress in its oncology pipeline, including the Phase 3 outcomes study of Olpasiran, a small interfering RNA molecule targeting atherosclerotic cardiovascular disease, and the ongoing investigation of Rocatinlimab, an anti-OX40 monoclonal antibody, in patients with atopic dermatitis.
The company also reported strong growth in sales of Tezspire, a treatment for severe uncontrolled asthma, and Tavneos, used for ANCA-associated vasculitis. However, sales of LUMAKRAS declined by 31% due to ongoing reimbursement negotiations in France.
Amgen raised its revenue guidance for 2023 to between $28.0 billion and $28.4 billion and revised its non-GAAP earnings per share range to $18.20 to $18.80. The company expects Q4 non-GAAP EPS to be lower than Q3 due to planned investments in the business and the inclusion of interest expense related to the Horizon financing.
The company projects capital expenditures for 2023 to be approximately $950 million, up from the previous guidance of $925 million. This increase reflects Amgen's commitment to advancing innovation quickly and on a large scale.
Amgen executives expressed confidence in their portfolio, pipeline, and global presence, anticipating attractive sales and earnings growth in the future. The call ended with the executives thanking their colleagues for successfully executing the company's mission of serving patients.
InvestingPro Insights
Amgen's performance and future prospects are further illuminated by InvestingPro's real-time data and tips. With a market cap of $136.77B, the company's P/E ratio stands at 17, indicating a fairly valued stock in relation to its earnings. The company's revenue growth over the last twelve months as of Q2 2023 was 0.75%, and it has delivered a return on assets of 10.67% over the same period.
InvestingPro Tips highlight Amgen's high earnings quality, with free cash flow exceeding net income. The company yields a high return on invested capital and has consistently increased its earnings per share. This aligns with the company's recent upward revision of its revenue guidance and non-GAAP earnings per share range for 2023.
It's worth noting that Amgen has raised its dividend for 13 consecutive years, a sign of its commitment to returning value to shareholders. This is confirmed by the InvestingPro data, which shows a dividend yield of 3.33% as of 2023.
These insights underscore Amgen's strong financial position and its ability to deliver value to its shareholders. For more detailed insights and over 10 additional tips, consider exploring the InvestingPro platform.
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