Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$263.19Last close (Oct 30, 2023)
Post-Earnings Price$255.89Open (Oct 31, 2023)
Price Change
$-7.30(-2.77%)
- Strong growth potential from innovative pipeline assets, such as Maridebart cafraglutide (AMG 133) for obesity, which may offer less frequent dosing and significant market share, driving a good return on investment.
- Successful integration of Horizon Therapeutics, adding a significant rare disease business to Amgen's portfolio, expected to be additive to the growth from their base business.
- Raised 2023 revenue guidance to $28.0 billion to $28.4 billion, reflecting strong performance of the base business with record sales in seven products and 11% volume growth, indicating good momentum across the board.
- Potential delays in AMG 133's development program: Amgen indicated that the initiation of Phase III trials for their obesity drug, AMG 133 (Maridebart cafraglutide), may be delayed as they require a certain safety database before proceeding. They will provide guidance on timing as they get into next year, suggesting potential delays beyond 2024.
- Increased interest expenses due to Horizon acquisition debt: Amgen has taken on significant debt of $28 billion with a weighted average interest rate of 5.6% to finance the Horizon Therapeutics acquisition. This results in higher interest expenses, with expected OI&E to be about $700 million in Q4, impacting earnings in Q4 2023 and potentially in 2024.
- Discontinuation of AMG 340 impacting oncology pipeline: The company is discontinuing the development of their PSMA-targeting bispecific AMG 340, which could negatively impact their oncology pipeline and future growth prospects in the metastatic castrate-resistant prostate cancer market.