Biotech juggernaut Amgen released its numbers for the December 2020 quarter yesterday. The numbers were impressive considering they had to lower their drug prices.
Revenues were up 7% to $6.6 billion, which was driven by a 13% increase in volume growth across the portfolio. Drugs like Otezla, Mvasi, Repatha (for cholesterol), Aimovig (for migraines) and a biosimilar Kanjinti for breast cancer, drove the growth. This offset the decline in matured drugs that are seeing competition from other biosimilars and generics.
Amgen's biosimilar business performed very well and it is still one of their fastest-growing divisions. Kanjinti made around $600 million in revenues, up 53% for the year, with 41% market share in the US. The acquisition of Otezla (for psoriasis and psoriatic arthritis) was successful and already generates over $500 million in revenue for the company.
The company also announced a dividend increase as well as a share repurchase program where the company looks to buy back about $4 billion worth of shares. Amgen has put its earnings guidance for 2021 between $16 and $17 a share, with revenues coming in between $25.8 billion and $26.43 billion.
Amgen has a very strong drug pipeline and a diversified drug portfolio which tries to solve the issues that come with old age. This company is here to stay and the pandemic has only provided a good entry point for long-term investors.
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