Amgen's Strong Second Quarter Drug Sales Drive Upward Forecast Revision and Early-Stage Weight Loss Drug Termination

Amgen reported its second-quarter earnings after the U.S. stock market close on Tuesday, with robust drug sales boosting profits, leading the company to raise its full-year outlook. However, it also announced the discontinuation of an early-stage weight loss therapy.

The biotechnology firm stated on Tuesday that it will halt development of AMG 513, a potential weight loss treatment currently in Phase 1 studies. Amgen noted that the study will be completed to track already enrolled participants, but did not disclose the reason for the termination. With the end of AMG 513's development, Amgen's sole remaining candidate in this field is MariTide, which is currently undergoing Phase 3 trials for indications including obesity, type 2 diabetes, and chronic weight management.

Amgen also raised its performance guidance, now projecting full-year revenue between $38.2 billion and $39.4 billion, up from the previous range of $37.1 billion to $38.5 billion. Adjusted earnings per share are expected to be between $22.30 and $23.50, compared to the earlier forecast of $21.70 to $23.10. Analysts surveyed by FactSet currently anticipate adjusted earnings per share of $22.36 on revenue of $37.74 billion.

The company reported a profit of $2.38 billion, or $4.37 per share, for the quarter ending June 30, versus a profit of $1.43 billion, or $2.65 per share, in the same period last year. Excluding certain one-time items, Amgen posted adjusted earnings per share of $6.29, surpassing analyst expectations of $5.62. Revenue rose to $10.05 billion from $9.18 billion a year ago, beating the $9.43 billion forecast by analysts. Growth was primarily driven by a 37% increase in global sales of Repatha to $953 million and a 38% rise in Evenity sales to $714 million.

"Our six growth-driving products grew 26% year-over-year, contributing nearly 70% of product sales in the second quarter," said CEO Robert Bradway. "As we expand the potential of existing drugs through new indications and push the next wave of pipeline molecules into Phase 3, we are confident in our ability to sustain growth over the next decade."