Amgen Q3 - Addressing Obesity

Vestact-recommended stock Amgen released its third-quarter earnings last week which beat both on earnings and revenue. This sent shares higher, bringing the total year-to-date returns to above 29%. That's very impressive, given that the overall S&P 500 index is down 20% for 2022.

Total revenues increased by 1% to $6.7 billion year-on-year, but profit was 15% higher driven by an 8% rise in volume for its cancer, rheumatology, and cardiovascular products, with eleven drugs achieving record sales. Sales of medicines that treat osteoporosis and migraines surged 35% year-on-year. This was offset by lower prices for arthritis drug Enbrel and the stronger US Dollar.

The big news in the quarter is that Amgen has developed a drug, currently just labelled AMG133, which blocks a hormone and a protein involved in regulating blood sugar levels, to address obesity. It has garnered increased attention following strong sales of Novo Nordisk's Wegovy and Eli Lilly's Tirzepatide drugs which also promote rapid weight loss.

This new therapy along with Olpasiran (a drug that was found to reduce levels of lipoprotein, which is a risk factor for cardiovascular disease) has put some excitement back into Amgen's share price after drifting sideways in recent years. We are very pleased to have this stock in many client portfolios. Our patience is being rewarded.