© Reuters. The logo of Amgen and a robot miniature are seen in this illustration taken, July 17, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
By Deena Beasley
(Reuters) -Amgen on Tuesday said its adjusted fourth-quarter profit rose 15%, driven by a 20% increase in revenue following the biotechnology company’s October acquisition of rare disease drugmaker Horizon Therapeutics (NASDAQ:).
For full-year 2024, the company said it expects adjusted earnings per share of $18.90 to $20.30 on revenue of $32.4 billion to $33.8 billion. Analysts are estimating 2024 earnings of $20.02 per share and revenue of $32.7 billion.
“The guidance looks good and in line with consensus,” Jefferies analyst Michael Yee said in an email.
Investors are tightly focused on Amgen (NASDAQ:)’s pipeline of experimental weight loss drugs. The company said it is on track to report the first human trial data for oral obesity drug AMG786 in the first half of this year, and to announce results from a mid-stage trial of its lead injectable weight loss candidate, MariTide, late this year.
Yee said it was encouraging that Amgen confirmed it is on track with MariTide and planning for a comprehensive Phase 3 program across multiple uses.
“We think we have a really strong offering for these obesity-related diseases,” Murdo Gordon, Amgen’s commercial operations chief said on a conference call, referring to the drug’s possible effect on diseases like heart failure and sleep apnea. The company is also exploring whether MariTide drug can help people maintain weight loss.
Amgen’s fourth-quarter revenue totaled $8.2 billion, edging ahead of analysts’ estimates of $8.1 billion, according to LSEG data.
Excluding Horizon’s medications, Amgen said year-over-year product sales grew 5% as volume growth of 9% was partially offset by lower net selling prices.
Shares of Amgen, which fell 2% in regular trading on Tuesday to close at $316.07, were a fraction lower at $316 after hours.
The company’s fourth quarter adjusted earnings per share rose to $4.71 from $4.09 a year earlier, beating analyst estimates of $4.61.
Quarterly product sales were led by a 12% jump to $1.1 billion for the osteoporosis drug Prolia. Sales of rheumatoid arthritis drug Enbrel fell 8% to just over $1 billion.
Amgen’s $27.8 billion acquisition of Horizon was finalized after the U.S. Federal Trade Commission removed its oppositionin exchange for Amgen agreeing not to use anticompetitive tactics.
Amgen said fourth quarter sales of Tepezza, Horizon’s thyroid eye disease drug, fell 5% from a year earlier to $467 million, while sales of gout drug Krystexxa rose 30% to $280 million.