By Deena Beasley
(Reuters) -Amgen reported a higher quarterly profit on Wednesday, driven by a 24% rise in sales of drugs for high cholesterol and osteoporosis, and said mid-stage trial results for a potentially lucrative obesity medicine will be unveiled late this year.
The U.S. biotech company said adjusted third-quarter earnings rose 13% from a year earlier to $5.58 per share, beating the $5.11 estimate by analysts, according to LSEG data.
Quarterly revenue of $8.5 billion was in line with analyst estimates of $8.52 billion.
The financial results were somewhat uneventful, BMO Capital Markets analyst Evan Seigerman said in a research note, as investor focus shifts to the upcoming readout of Phase 2 results for the company's experimental weight-loss drug MariTide.
Amgen (NASDAQ:AMGN) said initial results from the study will be announced late this year. The company has already set up the next round of clinical testing to potentially provide data enabling approval of the medicine by regulators.
"We're well advanced in preparing to launch a broad Phase 3 program for MariTide including obesity, obesity-related conditions and type 2 diabetes," Amgen CEO Bob Bradway said on a conference call.
Some analysts have forecast annual sales of new weight-loss medicines reaching $150 billion in the next decade.
"MariTide has the potential to be the first therapy in this setting with monthly or even less frequent dosing," Chief Scientific Officer Jay Bradner said on the call.
Amgen has begun studying a different weight-loss drug candidate, known as AMG513, but few details were disclosed.
The company also announced plans for late-stage testing of experimental immunotherapy xaluritamig in men with advanced prostate cancer.
"We continue to invest in research and development spending," Chief Financial Officer Peter Griffith told Reuters, noting that spending this year is expected to increase 25%.
Amgen shares, which closed at $315.54 in regular Nasdaq trading, were down about 1% after hours.
Third-quarter sales of cholesterol drug Repatha rose 40% to $567 million, while sales of osteoporosis treatment Prolia increased 6% to $1.05 billion. Sales of older arthritis drug Enbrel fell 20% to $825 million.
Thyroid eye disease drug Tepezza, acquired with Amgen's buyout last year of Horizon Therapeutics (NASDAQ:HZNP), saw sales rise 8% to $488 million.
For the full year, Amgen narrowed its earnings outlook to between $19.20 and $20.00 per share, from $19.10 to $20.10. It also raised the midpoint of its revenue forecast and now expects $33 billion to $33.8 billion versus a previous view of $32.8 billion to $33.8 billion.
Analysts, on average, had forecast earnings per share of $19.49 on revenue of $31.8 billion.
"If the obesity data is good," investors will be inclined to look past the ho-hum quarterly results and tweaked guidance, Jefferies analyst Michael Yee said in a research note.
"If data is messy, investors will be more frustrated," given that Amgen's costs are rising, he said.