Amgen Boasts Lucrative Acquisitions, Drug Updates, Burgeoning Biosimilars at JPM
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In a presentation led by Robert J. Bradway, Amgen chairman and chief executive officer, the company covered recent acquisitions, Repatha and Lumakras updates, biosimilars and its broader financial outlook.
- In December, Amgen acquired Horizon Therapeutics for $26.4 billion, emerging as the winner of a three-way bidding contest to acquire the sought-after company in biopharma’s most significant acquisition of 2022.
Bradway said the acquisition stood to:
- Strengthen Amgen’s portfolio of first-in-class / best-in-class innovative therapeutics
- Leverage Amgen’s decades of commercial and medical leadership in inflammation and nephrology
- Besides Horizon, Amgen completed the integration of ChemoCentryx in October 2022, a biopharma company focused on orally-administered therapeutics for $52 per share in cash, an aggregate merger of $3.7 billion. Bradway reported the integration of the portfolio is going well.
Repatha and Lumakras
- Repatha, for use adults with atherosclerotic cardiovascular disease, posted 52% volume growth in 2022.
- Lumakras, part of Amgen’s oncology portfolio--here in lung cancer, specifically, posted 11% gains in year-end growth (for the oncology grouping as a whole).
Bradway said global sales of their top nine products, covering inflammation, oncology and general medicine, showed 16% volume growth by the third quarter of 2022, totaling $10.5 billion.
Bradway said Amgen’s biosimilars continue to show gradual but stable growth.
- Amjevita (Humira) will launch in the U.S. on January 31st.
- More broadly, Amgen expects additional biosimilars to launch within the decade with potentially lucrative results.
- Five biosimilars launched in 2021 racked up $2.2 billion in revenue. By 2030, Bradway projected at least 11 biosimilars to be at play and predicted Amgen to see more than double the 2021 revenue as a result.
Though it’s “disciplined capital allocation,” Bradway projected a bountiful future for Amgen through 2030.
- Executed strategic transactions to invest in external innovation
- Acquired ChemoCentryx and Horizon Therapeutics
- Invested $4 billion in research and development
- Expect $1 billion in capital expenditures (manufacturing facilities in Ohio and North Carolina)
- Increased dividend by 10%
- Repurchased $6 billion in shares
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