Shares of Amgen (AMGN) rose on Tuesday after the biotechnology company exceeded quarterly earnings expectations and raised its revenue guidance.
Strong Q3 Performance
Amgen reported adjusted earnings of $4.96 per share for the third quarter, surpassing Wall Street's estimate of $4.78. This also represents an increase from the previous year's earnings of $4.70 per share.
While the company slightly fell short of analysts' revenue projections with $6.90 billion, it still demonstrates a solid performance in Q3.
Key Growth Drivers
Amgen witnessed significant growth in its sales of the inflammation drug Amjevita/Amgevita, recording a 30% year-over-year increase. The rise was primarily driven by a remarkable 53% growth in volume, although it was partly offset by lower prices. Additionally, sales of the company's general medicine treatment, Prolia, surged 14% compared to the previous year, benefiting from both a 7% increase in volume and higher prices.
Increased Revenue Guidance for 2023
Looking ahead, Amgen raised its revenue guidance range for the full-year 2023 to $28 billion - $28.4 billion. This represents an increase from the prior range of $26.6 billion - $27.4 billion. The company also provided a narrower range for adjusted earnings per share, projecting it to be between $18.20 and $18.80, compared to an earlier estimate of $17.80 - $18.80.
Amgen's Chairman and CEO, Robert Bradway, expressed enthusiasm for their pipeline progress and operating performance in Q3. He also highlighted the significance of the recent acquisition of Horizon Therapeutics, which has enriched Amgen's innovative portfolio with rare disease medicines.
In a separate development, Amgen successfully completed its acquisition of Horizon Therapeutics earlier this month, at a valuation of approximately $27.8 billion.
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