Amgen, Inc. (NASDAQ:AMGN) on buying spree

Amgen, Inc. (NASDAQ:AMGN) stock fell 0.80% (As on August 5, 11:19:28 AM UTC-4, Source: Google Finance) after the company agreed to buy ChemoCentryx Inc for $3.7 billion to gain access to a potential blockbuster treatment for inflammatory disorders and beat quarterly revenue estimates on demand for its bone disease drug. The deal, announced before markets opened, will also hand the company control of at least two experimental therapies for immune disorders, a field in the spotlight following AstraZeneca’s 2020 purchase of Alexion Pharmaceuticals for $39 billion. Amgen has been facing stiff competition for its top-selling arthritis drug, Enbrel, from newer branded treatments and patents for the therapy are expected to expire in 2029. The company, which kept its full-year adjusted profit forecast unchanged at between $17 and $18 per share, would pay $52 in cash for each share of ChemoCentryx, a premium of nearly 116% to the target’s last close. Amgen expects full-year revenue to be in the range of $25.5 billion to $26.4 billion.

AMGN in the second quarter of FY 22 has reported the adjusted earnings per share of $4.65, beating the analysts’ estimates for the adjusted earnings per share of $4.40. The company had reported the adjusted revenue growth of 1 percent to $6.59 billion in the second quarter of FY 22, beating the analysts’ estimates for revenue of $6.53 billion, according to Refinitiv data. This is due to a 13% jump in sales of osteoporosis drug Prolia to $922 million. Approved late last year to treat patients with a rare form of blood vessel inflammation or vasculitis, Tavneos brought in sales of $5.4 million in the first full quarter of its launch. Analysts expect over $1 billion in Tavneos sales by 2027, Refinitiv data shows. Non-GAAP operating income increased from $1.6 billion to $3.3 billion, and non-GAAP operating margin increased 26.8 percentage points to 53.1%. The Company generated $1.7 billion of free cash flow for the second quarter versus $1.7 billion in the second quarter of 2021. Cash and investments totaled $7.2 billion and debt outstanding totaled $36.5 billion as of June 30, 2022.

Additionally, for fiscal 2022, Capital expenditures is expected to be approximately $950 million, unchanged from previous guidance. Share repurchases are expected to be in the range of $6.0 billion to $7.0 billion, unchanged from previous guidance.

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