Amgen's Revenue Skyrockets 19% Despite FDA Setback, Oncology and Rare Disease Drive Growth

Amgen Inc. continues to solidify its position in the biopharmaceutical industry with remarkable financial results for 2024. The company's total revenue surged by 19% to $334 billion, driven by a robust 11% growth in product sales. The fourth quarter alone brought revenue of $91 billion, exceeding analyst expectations and underscoring the effectiveness of Amgen's strategies in key therapeutic areas.

Central to Amgen's success are its four primary business segments: General Medicine, Rare Diseases, Inflammation, and Oncology. These segments have witnessed impressive performances, with several products achieving double-digit sales growth. Notably, Repatha, a cholesterol-lowering PCSK9 inhibitor, reported a remarkable 36% increase in annual sales, reaching $22.22 billion. Evenity, aimed at osteoporosis, also saw a substantial surge in sales, indicating strong market demand.

Despite the positive financial outlook, Amgen faced a setback with its weight loss drug AMG 513. The FDA halted the phase I clinical trial for AMG 513 due to safety concerns, posing a significant challenge for the company. Amgen has expressed its intention to engage with the FDA to resume the study, but the future of AMG 513 remains uncertain, impacting potential revenue streams from this promising candidate.

Meanwhile, Amgen remains committed to advancing its pipeline in other areas. The company plans to commence phase III clinical trials for its weight loss candidate MariTide, another GLP-1R agonist/GIPR antagonist, in the first half of the year. Preliminary data indicates that MariTide may facilitate significant weight reduction, setting the stage for transformative outcomes in the burgeoning weight loss market.

In the rare disease segment, key products such as Tepezza and Krystexxa continue to demonstrate robust growth. Tepezza, acquired through the Horizon Therapeutics deal, achieved a notable rise in sales, strengthening Amgen’s foothold in the thyroid eye disease treatment market. Similarly, Krystexxa saw a 27% increase in quarterly sales, confirming its standing as a leader in the treatment of chronic gout.

Amgen's oncology division experienced substantial progress, fueled by the performance of Blincyto and Lumakras. Blincyto, used for treating acute lymphoblastic leukemia, and Lumakras, targeting KRAS G12C mutations, both contributed positively to the revenue, adding momentum to Amgen's oncology portfolio. The recent introduction of Imdelltra, targeting DLL3 in small cell lung cancer, demonstrates promise with $1.15 billion in revenue, reflecting its growing acceptance in the market.

Looking ahead, Amgen’s projections for 2025 indicate potential revenues between $343 billion and $357 billion. As the company navigates the challenges and opportunities within the industry, Amgen’s strategic investments and product developments remain pivotal to maintaining its competitive edge and achieving sustained growth.