Amgen Inc (NASDAQ:AMGN) stock rose 12.75% (As on May 3, 11:24:35 AM UTC-4, Source: Google Finance) after the company hinted at encouraging interim trial data on its experimental obesity drug, denting rival stocks such as Novo Nordisk. The company is conducting mid-stage studies of the injectable drug and said that, based on interim data, it was “confident in MariTide’s differentiated profile and believe it will address important unmet medical needs. Amgen is set to release initial data from this trial later in the year, with company executive Bradner saying he is “very pleased” with the preliminary results. Further, Amgen is collaborating with regulatory authorities to organize a late-stage trial for MariTide and has also revealed plans for a second-stage trial of the drug aimed at treating diabetes.

Moreover, Non-GAAP operating income increased from $2.8 billion to $3.1 billion, and non-GAAP operating margin decreased 5.1 percentage points to 43.2%. The Company generated $0.5 billion of free cash flow for the first quarter of 2024 versus $0.7 billion in the first quarter of 2023. This decrease was driven by an $800 million tax deposit, partially offset by timing of working capital items. Cash and investments totaled $9.7 billion and debt outstanding totaled $64.0 billion as of March 31, 2024.

AMGN in the first quarter of FY 24 has reported the adjusted earnings per share of $3.96, beating the analysts’ estimates for the adjusted earnings per share of $3.87. The company said EPS decreased by 1% due to higher operating and interest expenses driven by the Horizon acquisition, partially offset by higher revenues. The company had reported the adjusted revenue growth of 22 percent to $7.45 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $7.4 billion. Product sales grew 22%, driven by 25% volume growth. Ten products delivered at least double-digit volume growth in the first quarter, including Repatha (evolocumab), TEZSPIRE (tezepelumab-ekko), EVENITY (romosozumab-aqqg), BLINCYTO® (blinatumomab), and TAVNEOS (avacopan). U.S. volume grew 29% and ex-U.S. volume grew 17%. The company’s performance included $914 million of sales from the Horizon Therapeutics (Horizon) acquisition, driven by several first-in-class, early-in-lifecycle medicines, including TEPEZZA (teprotumumab-trbw), KRYSTEXXA (pegloticase) and UPLIZNA (inebilizumab-cdon).

Amgen sees full-year 2024 adjusted earnings of between $19 and $20.20 per share versus the $19.48 Street estimate. FY 2024 Total revenues is expected to be in the range of $32.5 billion to $33.8 billion and Capital expenditures to be approximately $1.1 billion.