Amgen’s Profit Beats Expectations on Lower Than Estimated Costs

(Bloomberg) -- Amgen Inc.’s third-quarter profit beat Wall Street estimates as the company’s expenses were lower than anticipated.

Adjusted earnings per share were $5.58, the company said in a statement, above the $5.10 average estimate from analysts. While Amgen’s revenue was in-line at $8.5 billion, reported operating costs of $4.46 billion were below expectations.

Investors are watching for updates on the experimental obesity drug, MariTide, because it gives the company a shot at entering the weight-loss market some analysts estimate will top $130 billion by the end of the decade. Amgen expects data from an ongoing phase 2 trial in the next two months.

While Eli Lilly & Co. and Novo Nordisk A/S already sell obesity drugs, the runner-up position offers a “moderate advantage,” Chief Financial Officer Peter Griffith said in an interview. Novo and Lilly’s launches have helped inform the company about demand for treatments, Griffith said.

The company narrowed its 2024 adjusted profit guidance to $19.20 per share to $20 per share, and increased the midpoint of its revenue guidance.

Product sales rose 24% in the quarter, with 10 medicines posting double-digit sales gains, the company said. Its rare disease medicines, including some gained from acquisitions in recent years, generated $1.2 billion in sales, it said.