Pharma stock under pressure: Amgen, Inc. (NASDAQ: AMGN)

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Amgen, Inc. (NASDAQ: AMGN) stock lost over 1% on 29th July, 2020 (as of  9:32 am GMT-4; Source: Google finance) post second quarter of 2020 performance. The firm’s GAAP earnings per share (EPS) fell 15% yoy to $3.05 on the back of amortization of costs due to November 2019 acquisition of Otezla. The operating income also fell 13% yoy to $2.3 billion while GAAP operating margin fell 8.7 percentage points to 39.3%.

Amgen’s global revenues rose 6% yoy to $6,206 million during the quarter with US business rising 7% driven by 14% rise from volume. Their newer products performance drove the volume which comprises Otezla® (apremilast), MVASI® (bevacizumab-awwb), KANJINTI® (trastuzumab-anns), EVENITY® (romosozumab-aqqg) and Repatha® (evolocumab). The ex-US business volume rose 11% yoy to $1.5 billion. In the second quarter of 2020, the firm witnessed interruptions to physician-patient interactions leading to delays in diagnosis and treatment. Non-GAAP EPS rose 7% to $4.25 but again this rise is due to BeiGene’s net loss for the previous quarter. Non-GAAP operating income rose 9% to $3.2 billion while non-GAAP operating margin increased 1.7 percentage points to 55.0%. The firm restarted several earlier stage clinical trials that were on hold on the back of COVID-19 while exploring Otezla as a potential treatment for patients with COVID-19.

As per their product portfolio progress, their Prolia for bone health has implemented programs to address issues like identifying alternate sites of care, mobile nurse administered injections and prescription fills at specialty and retail pharmacies. The firm sees solid growth prospects in Evenity, given its unique bone building profile and usage in high risk, post fracture patients. In cardiovascular segment, the overall Repatha prescriptions rose on a quarter-over-quarter basis but seeing fall in new prescriptions in April due to COVID-19. CVS also removed Repatha from its national formulary as of July 1st, which hurt its total prescription growth in the third quarter. In inflammation portfolio, Otezla TRx growth was strong driven by new to brand prescriptions as well as fall in NBRx volume for the overall psoriasis market due to COVID-19. The firm’s biosimilar products generated $357 million in sales during the second quarter of 2020.

The firm issued a revenue guidance of $25.0 billion to $25.6 billion despite the uncertainty arising from the ongoing pandemic. They are updating non-GAAP earnings per share guidance to $15.10 to $15.75 against the earlier forecast of $14.85 to $15.60.

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