Amgen stock dipped Friday after the company narrowed its 2022 outlook and announced its $3.7 billion plan to buy ChemoCentryx.
For the year, Amgen now expects $25.5 billion to $26.4 billion in sales. That retains the midpoint of Amgen's earlier guidance. The company also kept its adjusted earnings outlook for $17-$18 per share. Analysts called for $17.41 in earnings per share on $26.23 billion in sales.
RBC Capital Markets analyst Gregory Renza noted Amgen had strong results across its suite of products. He noted lung cancer drug Lumakras and asthma medicine Tezspire "produced their best quarters yet since launch." Lumakras sales grew 24% to $77 million, while Tezspire brought in $29 million in sales. But Lumakras sales beat some estimates and missed others, according to reports.
"Our focus remains on the launch progressions for Lumakras, Tezspire and now Tavneos in the fourth and first quarters, emerging biosimilars pipeline launches, product volume/performance, macroeconomic volatility and future avenues of growth through business development," he said in a report to clients. Tavneos is the inflammation drug Amgen will access by acquiring ChemoCentryx.
On today's stock market, Amgen stock dipped a fraction to close at 246.25.
Amgen Stock: Sales Prices Under Pressure
Overall sales inched 1% ahead during the June quarter, to $6.59 billion. That topped Amgen stock analysts' projections for $6.52 billion. Adjusted earnings ratcheted 163% higher to $4.65 a share, and beat expectations for $4.39, according to FactSet.
Sales of Amgen's medicines climbed 3% vs. the same three months last year. They were helped by a 10% boost in demand and hurt by a 6% decline in net selling price. Exchange rates also had a negative 2 percentage point impact.
Revenue from Amgen's biggest drug, Enbrel, skidded 8% to $1.05 billion. Amgen expects Enbrel to face continued pricing pressure due to new competition. The second quarter was also marked by a 3 percentage point decline in the volume of patients taking it. Enbrel sales were in line with expectations, SVB Securities analyst David Risinger said in a note to clients.
He has a market perform rating on Amgen stock.
Prolia, Amgen's second biggest moneymaker, generated $922 million. Sales of the osteoporosis drug advanced 13% year over year and were 3% above projections, Risinger said.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
