2024-02-08 18:15:44 ET
Summary
- Amgen reported strong Q4 and full-year 2023 earnings, with revenues growing 20% year-over-year and non-GAAP EPS growing 15% year-over-year.
- Concerns around the development of a weight loss drug similar to competitors' drugs - the GLP-1 agonist AMG-133 - caused Amgen's stock to fall.
- Amgen's drug AMG-133 showed promising results in a Phase 1 study, but analysts and the market reacted negatively, overshadowing the company's successful earnings.
- The competing drugs are Lilly and Novo's tirzepatide and semaglutide which have achieved miraculous results in weight loss and are expected to drive >$100bn in revenues between them.
- The market now insists that every pharma company must have a Wegovy / Zepbound in its pipeline, but this is nonsensical - today's sell-off was unwarranted. Buy the dip.
Investment Overview
Amgen Inc. ( AMGN ), the California-based "big pharma," announced its fourth quarter and full year 2023 earnings on Tuesday - the company had a strong Q4, with revenues growing 20% year-on-year, to $8.2bn, and non-GAAP earnings per share ("EPS") growing 15% year, to $4.71 per share....
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Amgen: Weight Loss Drug Candidate Debate A Red Herring - Buying The Dip Advisable