Amgen expects sales to be roughly flat in 2022 despite strong first-quarter growth — leading Amgen stock to tumble late Wednesday.
For the year, the biotech behemoth called for $25.4 billion to $26.5 billion in sales. The midpoint of Amgen's guidance just missed analyst estimates for $26.05 billion. Amgen expects to earn $17-$18 a share, minus some items. Earnings would creep up 2% at the midpoint, but lag views by a dime.
In response, Amgen stock toppled 4.2% near 238.40 in after-hours trading on today's stock market.
Amgen Stock: Lower Sales Of Enbrel, Otezla
The guidance miss follows a strong first-quarter report in which sales popped 6% to $6.24 billion and topped expectations for $6.07 billion. Earnings also came in above projections at $4.25 per share, up 15% on a year-over-year basis.
The best growth came from osteoporosis treatment Evenity and migraine drug Aimovig. Sales of those two treatments surged a respective 59% and 53%. But those are two of Amgen's smallest contributors. Revenue from its biggest moneymaker, inflammation treatment Enbrel, fell 7% to $843 million.
Amgen also noted lower sales of Otezla, another inflammation drug, one it acquired from Bristol Myers Squibb. Otezla sales fell 5% to $350 million. Both Otezla and Enbrel felt the impact of insurance changes and increased co-pays. Otezla also experienced price declines.
The company also noted the continued impact of the Covid pandemic.
Amgen stock is currently forming a cup-with-handle base with a buy point at 258.55, according to MarketSmith.com. Shares also have IBD Digital ratings in the top 80% of all stocks.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
