Amgen stock dropped Wednesday despite a beat-and-raise second quarter as investors look ahead to the next readouts for the company's MariTide weight-loss shot.
In the fourth quarter, Amgen expects to unveil the results of two MariTide studies. One includes the second part of a Phase 2 study of MariTide as a weight management solution. The other examines the drug as a treatment for type 2 diabetes in patients with or without obesity.
But the maintenance study likely won't address tolerability questions, William Blair analyst Matt Phipps said in a report.
"Given part 2 only enrolled patients who had at least 15% weight loss at week 52 and the 420 mg dose is not being evaluated in ongoing Phase III studies, it likely limits the read-through from the part 2 results to ongoing development," he said.
On Wednesday, Amgen stock toppled 5.1% to 284.67. Shares undercut their 50-day and 200-day moving averages, MarketSurge research shows. Shares are forming a cup-with-handle base with a buy point at 311.28.
Prolia, Enbrel Face Setbacks
Late Tuesday, the S&P 500 biotech company reported adjusted earnings of $6.02 per share on $9.18 billion in second-quarter sales, growing 21% and 9%, respectively. Both measures beat expectations for earnings of $5.28 a share and $8.94 billion in sales, according to FactSet.
But sales of Amgen's biggest moneymaker, Prolia, sank 4% to $1.12 billion. Amgen blamed lower net selling price for the decline and cautioned that lower-cost biosimilars in the U.S. will further pressure sales in the second half of the year. Still, Prolia beat sales projections for $1.09 billion.
Similarly, Enbrel sales dropped 34% to $604 million due, in part, to lower sales price and changes in Medicare. That widely missed projections for $786 million. Enbrel treats an array of inflammatory conditions like arthritis and psoriasis.
The best growth in the quarter came from Uplizna, a treatment for two autoimmune diseases. Uplizna sales rocketed 91% to $176 million, easily topping analysts' forecast for $123 million. Uplizna arrived at Amgen in the Horizon Therapeutics acquisition.
Another Horizon drug, Tepezza, generated $505 million in sales, growing 5% and absolutely crushing projections for $353 million. Tepezza treats thyroid eye disease.
Amgen also reported strong growth from cholesterol drug Repatha and Evenity, another osteoporosis treatment. Sales of both grew by double digits and easily topped analysts' expectations. In total, the company noted 15 products put up double-digit sales growth during the quarter.
Guidance Raised For 2025
Though the second quarter came out mixed, Amgen raised its guidance for the year. The company now expects to earn $20.20 to $21.30 per share, minus some items, on $35 billion to $36 billion in sales.
Three months ago, Amgen guided to a lower $20 to $21.20 adjusted earnings per share and $34.3 billion to $35.7 billion in sales.
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