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Amgen Revenue Slipped 1% in the Fourth Quarter

By Brian Orelli, PhD - Updated Jan 30, 2020 at 7:35PM

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2020 sales are expected to accelerate year over year, but so are expenses.

Fourth-quarter revenue for Amgen (AMGN -0.55%) slipped 1% year over year to $6.2 billion as the company faced competition from biosimilar and generic competition for its older medications. Adjusted earnings per share increased 6% year over year, boosted by the company's repurchase of 40.2 million shares for $7.6 billion during 2019.

Sales of Parsabiv, which helps patients on hemodialysis, jumped 49% year over year. Cholesterol-lowering Repatha saw sales increase 26% year over year as Amgen parlayed data from an outcomes study showing the drug reduces cardiovascular events. Sales of osteoporosis treatment Prolia and immune thrombocytopenia treatment Nplate both increased 15% year over year. Psoriasis and psoriatic arthritis treatment Otezla, which Amgen acquired to facilitate Bristol-Myers Squibb's (BMY -1.60%) closing of its deal with Celgene, added $178 million in revenue during the five weeks or so that Amgen owned the drug during the quarter.

Doctor talking to a patient

Image source: Getty Images.

While Amgen fights biosimilars to its branded drugs, it's also launching biosimilars of its own, including Avsola, a biosimilar to Johnson & Johnson's (JNJ -2.84%) Remicade that gained Food and Drug Administration approval in December. The drugmaker also has a biosimilar to Biogen's (BIIB -5.18%) and Roche's (RHHBY -2.04%) Rituxan that was submitted to the FDA in December.

Management guided for 2020 revenue of $25.0 billion to $25.6 billion, up 8.2% at the midpoint. Adjusted earnings per share are expected to fall in the $14.85 to $15.60 range, higher than the $14.82 Amgen recorded last year, but up just 2.7% at the midpoint, suggesting that the company plans to increase spending faster than revenue this year.

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Stocks Mentioned

Amgen Inc. Stock Quote
Amgen Inc.
AMGN
$243.51 (-0.55%) $-1.34
Johnson & Johnson Stock Quote
Johnson & Johnson
JNJ
$176.94 (-2.84%) $-5.18
Bristol Myers Squibb Company Stock Quote
Bristol Myers Squibb Company
BMY
$78.70 (-1.60%) $-1.28
Roche Holding AG Stock Quote
Roche Holding AG
RHHBY
$41.36 (-2.04%) $0.86
Biogen Inc. Stock Quote
Biogen Inc.
BIIB
$202.51 (-5.18%) $-11.06

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