Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Amgen Inc (AMGN, Financial) reported a 19% year-over-year increase in total revenues for 2024, driven by strong product sales growth.
• The company achieved double-digit growth for 10 products and had 14 products annualizing at over $1 billion in sales.
• Repatha and EVENITY showed significant growth, with Repatha sales increasing by 36% to over $2.2 billion.
• Amgen Inc (AMGN) successfully launched TEPEZZA in Japan and plans to expand into seven additional countries in 2025.
• The company is advancing its pipeline with important Phase 3 data readouts expected in 2025, including for MariTide in obesity and related conditions.

Negative Points

• Amgen Inc (AMGN) faces challenges from declining net prices and losses of exclusivity for some products.
• The company anticipates continued price declines across its portfolio in 2025, which could impact revenue growth.
• There is increased competition in the market for Repatha, particularly from oral PCSK9 inhibitors.
• Amgen Inc (AMGN) is dealing with the impact of increased interest expenses due to the Horizon acquisition.
• The company expects a decline in free cash flow performance in 2025 compared to 2023, driven by working capital changes and increased capital expenditures.

Q & A Highlights

Q: Can you comment on the mechanism of AMG 513, which is on clinical hold for obesity, and discuss the sustainability of AMGEVITA's strong performance? A: AMG 513 is a novel investigational medicine for obesity currently in Phase 1, and its mechanism of action has not been disclosed. Regarding AMGEVITA, we are pleased with the overall performance of our biosimilars, which grew 16% last year, and we are confident in continued growth, with AMGEVITA being a key contributor.

Q: How do you anticipate the Repatha market evolving with new indications and competition from oral PCSK9s? A: We are pleased with Repatha's strong growth and expect it to continue as we treat more patients with elevated LDL cholesterol. Repatha is perceived as accessible and affordable, and we are at an inflection point in its performance. While new competition is emerging, Repatha has demonstrated significant benefits in preventing heart attacks and strokes, and we aim to show its efficacy in primary prevention with upcoming study results.

Q: Can you discuss the growth potential for Horizon products like KRYSTEXXA and TEPEZZA, and the competitive landscape? A: KRYSTEXXA and TEPEZZA are part of a portfolio with significant growth potential. KRYSTEXXA addresses severe uncontrolled gout, which is not a rare condition, and we see robust growth opportunities. TEPEZZA has been approved in Japan, and we expect international launches to drive growth. We are also developing additional pipeline assets to support these products.

Q: What is Amgen's strategic view on obesity assets, given recent challenges, and how do you plan to expand your portfolio? A: We remain confident in our obesity efforts, particularly with MariTide, which has a differentiated profile. Our pipeline includes both oral and subcutaneous administration options, and we are open to partnerships to enhance our portfolio. We believe we have the capabilities to be a major player in obesity treatment.

Q: How do you view the opportunity in China, particularly for oncology medicines, and the role of your partnership with BeiGene? A: Our business in China is growing well, with Repatha and Prolia performing strongly. The partnership with BeiGene, now BeOne, has exceeded expectations, particularly with products like KYPROLIS, BLINCYTO, and XGEVA. We continue to work closely with them on R&D projects, and we see significant growth potential in the region.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.