Amgen Sees Growth Despite Patent Pressure

At the Wells Fargo 21st Annual Healthcare Conference, Amgen's (AMGN) chief financial officer Thomas Dittrich said the company is still growing despite patent pressure and tougher competition. The growth can be attributed to a larger portfolio and several late-stage programs.

The company reported second-quarter revenue of over $10 billion, a 10% increase from the previous year. Twenty-two products delivered double-digit sales growth in the quarter, with six key drivers - Repatha, EVENITY, TEZSPIRE, rare disease, innovative oncology, and biosimilars - growing by 26%.

Amgen's management is willing to spend more on growth, even if it means slightly lower margins. The company aims to maintain a non-GAAP operating margin of 45-46% for the year. To achieve this, Amgen will focus on productivity gains, process streamlining, and artificial intelligence.

The company also highlighted its pipeline progress, with several late-stage programs expected to support growth in the coming years. MariTide, a chronic weight management treatment, has shown promising phase II data, with patients experiencing up to 20% weight loss. Amgen believes this drug could be used as little as four to six doses per year for maintenance.

In rare disease and biosimilars, Amgen made progress in Sjögren's disease and biosimilar development. ABP 234, a KEYTRUDA biosimilar, completed phase III testing and met its primary and secondary endpoints. Full results will support a planned regulatory filing in the second half of 2024.