Amgen(US:AMGN)2023-10-31 17:15Financial Performance - Total revenues increased by 4% year-over-year to $6.9 billion, with non-GAAP earnings per share rising by 6% to $4.96 [38][39] - Volume growth was 11% globally, marking the fourth consecutive quarter of double-digit volume growth [6][10] - Non-GAAP operating expenses increased by 4% year-over-year, with a non-GAAP operating margin of 52% [38][39] Business Line Performance - General medicine revenue grew by 21% year-over-year, driven by a 20% volume increase, with Repatha sales up 31% [11][12] - Prolia sales increased by 14% year-over-year, while EVENITY achieved record sales of $307 million, reflecting 48% volume growth [13][14] - Otezla sales declined by 10% year-over-year, impacted by lower net selling prices and inventory levels [14][15] - Hematology-oncology products saw a 15% volume growth, with BLINCYTO sales growing by 55% to a record $220 million [18][19] Market Performance - U.S. volume growth was 11%, while Asia-Pacific was the fastest-growing region with 27% volume growth [10][11] - The rare disease business, bolstered by the Horizon acquisition, generated $945 million in sales, with Tepezza and KRYSTEXXA showing strong growth [22][27] Company Strategy and Industry Competition - The acquisition of Horizon Therapeutics is expected to enhance Amgen's rare disease portfolio and overall growth strategy [4][5] - Amgen aims to leverage its global presence to expand the reach of its rare disease medicines, which currently have significant potential in the U.S. market [5][22] - The company is focused on innovation and expanding its pipeline, with several first-in-class oncology assets progressing through clinical trials [7][30] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver attractive sales and earnings growth through the end of the decade [9][10] - The integration of Horizon's capabilities is expected to accelerate growth in the rare disease segment [22][29] - Management highlighted the importance of investments in R&D and digitalization to drive future growth [41][42] Other Important Information - The company raised its 2023 revenue guidance to $28.0 billion to $28.4 billion, reflecting the inclusion of Horizon's results starting October 6, 2023 [42][43] - Non-GAAP tax rate for 2023 is expected to be between 16.5% and 17% [47] Q&A Session Summary Question: Insights on the Horizon transaction and obesity treatment - Management discussed the differentiated profile of AMG 133 for obesity and the ongoing Phase 2 trial, expressing confidence in its potential [50][51] Question: Clarification on interest expense and revenue guidance - Management confirmed that the $700 million run rate includes all expenses and highlighted strong performance in the base business contributing to revenue guidance [55][60] Question: Outlook for Tepezza and other Horizon assets - Management provided positive indicators for Tepezza's growth in the U.S. and international markets, emphasizing favorable payer policies and increasing prescriber numbers [63][67] Question: Investments in AI technology - Management expressed excitement about the integration of AI in drug discovery and development, anticipating significant qualitative changes in the process [71][74]