Amgen has reported a 45.9% decrease in net income to $746m in the second quarter (Q2) of 2024 compared to $1.3bn in the same period of the previous year.
Despite this decline, the company's total revenues saw a 20% increase to $8.4bn in comparison to $6.6bn in Q2 2023.
Product sales rose by 20%, attributed to a 26% increase in volume, which was partially offset by a 3% decrease in net selling price.
Excluding sales from the Horizon acquisition, product sales of the company grew by 5%, with volume growth of 10%.
Amgen noted that 12 products, including Prolia, EVENITY, Repatha, TEZSPIRE and TAVNEOS achieved at least double-digit sales growth in the quarter.
For the three months ended 30 June 2024, generally accepted accounting principles (GAAP) earnings per share (EPS) decreased by 46% to $1.38 from $2.57 in Q2 2023.
This was attributed to increased operating expenses, including those related to amortisation, from Horizon-acquired assets and Horizon's incremental expenses, though partially offset by higher revenues.
GAAP operating income fell to $1.9bn from $2.7bn in the prior year quarter, with the operating margin dropping 16.5 percentage points to 23.7%.
Non-GAAP EPS saw a slight decrease of 1% to $4.97 from $5.0 in Q2 2023.
Non-GAAP operating income rose from $3.5bn to $3.9bn, while the operating margin decreased by 4.4 percentage points to 48.2%.
The company declared a second-quarter dividend of $2.25 per share on 6 March 2024 - a 6% increase from the same period in 2023.
Amgen chairman and CEO Robert Bradway stated: “With a strong, balanced portfolio of in-market products and a rapidly advancing pipeline of innovative medicines, we are confident in our ability to deliver attractive long-term growth.”
The company has updated its guidance for the full year of 2024 and now expects total revenues between $32.8bn and $33.8bn.
On a GAAP basis, EPS is projected to be between $6.57 and $7.62 with a tax rate between 6% and 7.5%.
On a non-GAAP basis, EPS is estimated to be between $19.10 and $20.10, with a tax rate of 15% to 16%.
In May 2024, Amgen reported that total revenues grew in Q1 2024 to $7.4bn, displaying a 22% increase from earnings reported in Q1 2023.
