Amgen stock rose moderately Thursday after Chief Financial Officer Peter Griffith said the biotech is "laser-focused" on developing its obesity treatment, MariTide.
Part of that focus involves expanding manufacturing capacity so Amgen doesn't land in the same place as Novo Nordiskand Eli Lilly. The duo lead the weight-loss drugs market, but have struggled to meet demand for years.
In an interview with Investor's Business Daily on Wednesday, Griffith noted Amgen's drug, MariTide, is being tested as a monthly shot. Novo's Wegovy and Lilly's Zepbound, on the other hand, are weekly injections.
"That would require 12 or fewer devices as opposed to a weekly medicine that requires 52 or a much larger number than 12," he said. "So, I think it's really important to think about that as you think about capacity and what's going to happen over the coming years with obesity, obesity-related conditions and type 2 diabetes, and the demand around that."
Amgen is facing off with a new competitor in the weight-loss space. Pfizer said Tuesday it's working on a drug that will block the GIP receptor. MariTide speeds up the GLP-1 hormone and puts the brakes on the GIP receptor. That differs from Lilly's Zepbound, which mimics both hormones.
Griffith said human genetics suggest this approach will work. The fact Pfizer is also angling for GIPR antagonism is "an observation worth noting," he said.
Amgen stock rose 1.5% on Thursday, ending the regular session at 320.16.
Amgen Stock: Osteoporosis Drugs Miss Forecasts
Griffith's comments come ahead of the company's third-quarter earnings report. Amgen posted profit of $5.58 per share, up 13% and ahead of expectations for $5.11, according to FactSet. Sales surged 23% to $8.5 billion, meeting analysts' forecasts. Shares slipped a fraction to 313.87 in after-hours trading.
Sales of the company's biggest moneymaker, Prolia, missed Amgen stock analysts' forecasts. The osteoporosis treatment brought in $1 billion in sales, ticking 6% higher year over year. But analysts projected $1.12 billion in sales.
But Griffith said the company's bone health franchise remains strong. It also includes Evenity, a bone builder and a "very rapidly growing medicine for us." Evenity generated $399 million in sales, growing 30%, but missed forecasts for $406 million. Xgeva, another osteoporosis drug, brought in $541 million in sales, up 4%, but lagging calls for $550 million.
The biotech behemoth noted 10 products tacked on at least double-digit sales growth. That included a 40% increase for cholesterol treatment Repatha to $567 million. Repatha topped expectations for $539 million in third-quarter sales.
Amgen stock is currently forming a flat base with a buy point at 346.85, according to MarketSurge.
Raised Sales Guidance For 2024
Notably, sales of cancer drug Blincyto popped 49% to $327 million, walloping projections for $297 million. Sales of Tezspire launched 67% to $269 million, just ahead of forecasts for $257 million. Tezspire is an asthma treatment.
But on the flip side, revenue from Enbrel skidded 20% to $825 million. That widely missed calls for $914 million. Enbrel, which treats autoimmune diseases, is facing competition from biosimilars.
Amgen raised the low end of its sales outlook and now expects $33 billion to $33.8 billion. That's in line with analysts' forecast for $33.21 billion in sales. The company also narrowed its adjusted earnings guidance to $19.20 to $20 per share. Analysts predicted $19.52 a share.
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