Why did AMGN's Q3 2024 revenue fall short?

Amgen's Q3 2024 revenue fell short due to several factors: 1. **Earnings Estimate Reductions**: Analysts at Zacks Research and Leerink Partners have both reduced their Q3 2024 earnings per share (EPS) estimates for Amgen, with Zacks now expecting $4.83 EPS, down from $5.09 previously. This suggests that the company's earnings may not meet market expectations. 2. **Revenue Shortfall in Q2**: While Amgen's total revenue for Q2 2024 was $8.39 billion, which is a 20.1% increase year-over-year, it missed the analyst estimate of $8.35 billion. This shortfall, although relatively small, could indicate issues with revenue generation or recognition. 3. **Expense Increases**: The development of the experimental obesity drug MariTide and other expenses have offset the revenue increase, leading to a 1% slip in profit as reported in Q2. This suggests that increased costs are impacting the company's profitability and potentially affecting revenue as well. 4. **Market Dynamics**: The market for biotech products is highly competitive and sensitive to market dynamics. Changes in market conditions, competition from other drugs, and pricing pressures could all contribute to a shortfall in revenue. In summary, Amgen's Q3 2024 revenue falling short is likely a result of a combination of reduced earnings estimates, missed revenue targets in the previous quarter, increased expenses, and challenging market conditions.