Amgen Reports Robust First Quarter 2024 Financial Performance Amidst Expanding Product Portfolio
$AMGN
Amgen (NASDAQ:AMGN) today unveiled its financial outcomes for the first quarter of 2024, marking a period of significant growth and strategic expansion. Robert A. Bradway, chairman and chief executive officer, expressed optimism about the company’s trajectory, citing a 22% increase in total revenues which reached $7.4 billion, compared to the same period last year. This growth was primarily fueled by a 25% surge in product sales volume, highlighting the robust demand for Amgen’s diverse portfolio of medicines.
The company’s performance this quarter was significantly bolstered by its recent acquisition of Horizon Therapeutics, which contributed $914 million to the total sales, driven by innovative, early-in-lifecycle medicines such as TEPEZZA® (teprotumumab-trbw), KRYSTEXXA® (pegloticase) and UPLIZNA® (inebilizumab-cdon). Excluding Horizon’s contributions, product sales still saw a commendable increase of 6%, underpinned by a 9% rise in volume growth.
These strong sales figures, Amgen reported a GAAP loss per share of $0.21, a stark contrast to the GAAP earnings per share (EPS) of $5.28 reported in the first quarter of 2023. This downturn was attributed to a mark-to-market loss on the company’s equity investment in BeiGene, Ltd. . and elevated operating expenses stemming from the Horizon acquisition. These factors also led to a decrease in GAAP operating income, which fell from $1.9 billion to $1.0 billion and a reduction in GAAP operating margin by 19.0 percentage points to 13.9%.
On a non-GAAP basis, EPS slightly decreased by 1% from $3.98 to $3.96, influenced by higher operating and interest expenses, albeit partially offset by the increased revenues. Non-GAAP operating income rose from $2.8 billion to $3.1 billion, although the non-GAAP operating margin saw a decrease of 5.1 percentage points to 43.2%. The quarter also saw a dip in free cash flow, which amounted to $0.5 billion compared to $0.7 billion in the first quarter of 2023. This reduction was primarily due to an $800 million tax deposit, slightly mitigated by the timing of working capital items.
In terms of product performance, several of Amgen’s medicines reported significant year-over-year volume growth. Notably, Repatha® led with a 33% increase, generating $517 million in sales. Other key contributors included Prolia® and EVENITY®, which saw sales of $999 million and $342 million, respectively. The oncology segment also showed strong performance, with BLINCYTO® sales up by 26% to $244 million.
Looking ahead, Amgen remains committed to its strategic initiatives and anticipates continued growth driven by its innovative product lineup and recent acquisitions. The company’s robust pipeline, which includes potential treatments for various serious illnesses, positions it well for sustained long-term growth. As the firm continues to navigate the complexities of the biopharmaceutical landscape, it remains focused on delivering value through scientific innovation and strategic market expansion.
