Amgen (AMGN) Up 2.9% Since Last Earnings Report: Can It Continue?

Core Insights - Amgen reported strong Q4 2024 earnings, with adjusted earnings of $5.31 per share, surpassing estimates, and total revenues of $9.1 billion, also exceeding expectations [2][21] - The company anticipates continued revenue growth in 2025, driven by key products, despite challenges from price erosion [22][23] Financial Performance - Q4 2024 adjusted earnings rose 13% year over year, while total revenues increased by 11% [2] - Total product revenues reached $8.72 billion, with a 14% increase in volume, although offset by price declines [3][4] - Full-year 2024 sales rose 19% to $33.4 billion, slightly beating estimates [21] Product Performance - Ten products achieved double-digit volume growth, with notable contributions from rare disease drugs, generating $1.2 billion in sales [4] - Key drugs like Repatha and Evenity saw significant sales increases, with Repatha up 45% year over year [6][5] - Established products experienced a 29% decline in sales, totaling $500 million [18] Cost and Margin Analysis - Adjusted operating margin declined to 46.3%, with operating expenses rising 11% to $5.05 billion [20] - R&D expenses increased by 14% year over year, reflecting higher spending on clinical programs [20] Future Guidance - For 2025, Amgen expects total revenues between $34.3 billion and $35.7 billion, with adjusted earnings projected between $20.00 and $21.20 per share [22][23] - The company anticipates a decline in operating margin to around 46% due to increased R&D costs [23] Pipeline Developments - Amgen plans to initiate a broad phase III program on MariTide targeting obesity and related conditions in 2025 [25]