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Amgen (AMGN) posted second quarter revenue of $8.4 billion, topping expectations of $8.34 billion. Sales rose by 20% in the quarter, however, the company noted that lower net selling prices partially offset a 26% growth in volume for products. Amgen Chief Financial Officer Peter Griffith joins Market Domination Overtime to break down the company's latest earnings report and its outlook amid mounting fears of a recession.
Griffith notes that 12 of Amgen's products delivered double-digit sales growth during its second quarter, and he expects that growth to continue in the second half of the year. Amgen also raised the low end of its guidance from $32.5 to $32.8 billion. He notes that demand will likely remain steady during a recession, as medicine is integral to patients' daily lives.
Griffith points specifically to the cardiovascular, bone, and asthma segments that are likely to continue to see growth and high volumes, calling them "best-in-class medicines for patients with really serious illnesses." He adds, "We're fortunate to be able to continue to deliver those, generally, regardless of economic conditions. And we intend on doing that."
Well, overall, Amgen's sales did rise by 20%, but the company did say lower net selling prices partially offset a 20% 26% growth in volume for products in the second quarter. We got the chance to speak with the Amgen's chief financial officer, Peter Griffeth, on the price pressures and the enthusiasm surrounding that obesity drug.
Price pressures have been in the industry since about 2018. And we deal with them and we deal with them really effectively. We continue to do that. So we continue to stay focused on productivity and prioritization. We believe that there's going to continue to be price pressure going forward and that's important to us and making sure we have the capital allocate to innovation. Our first capital allocation here at Amgen and to our pipeline uh to make sure that we address uh those decreases in prices. Um certainly they come from the market. Uh they come from uh pressures from uh payers. They come from pressures uh from the IRA and 340B and so forth. But we're fully prepared to deal with them and have dealt with them successfully uh since about 2018 when the industry started to see those secular pressures on pricing.
And obviously, also, more than making up for it with that the increase in volumes as well that I alluded to. Um, as you're aware, there is a little bit of an increasing narrative and concern being expressed on the part of economists and market participants about the US economy and whether we are seeing a sharper slowdown or even potentially recession. Now, I know healthcare firms are a little bit more insulated from that, but I am wondering if you all are seeing any kind of signs in demand for even some more of your products that you consider more discretionary. I know there aren't many of them. Are are you seeing any kinds of signs of of economic weakness in your numbers?
Well, uh thank you. You highlighted it when we started, Julie, which is 12 products delivered at least double digit sales growth uh during the quarter. And so our volume growth is very strong. And we expect it to continue to be strong. And so uh as we go forward uh during the last half of the year, uh I, as you would note, we raised the bottom end of our guidance from 32.5 to 32.8 billion of revenue. So we raised the midpoint on revenue 150 million. And we really see volumes strong going forward. And we were up uh 45% or so in volume on Repatha and the cardiovascular business uh to $532 million of revenue in the quarter. Cardiovascular disease doesn't uh slow down uh with uh, you know, a slowing in the market and a recession. And you know, that's a very important medicine. Eventi in our bone franchise was up 39%. In the quarter to 391 million. And that treats uh a postmenopausal osteoporosis disease and and that's going to be a disease that's only getting more and more prevalent. So, uh also uh Tezspire was up 76% in the quarter, treating severe asthma. And um that was driven by volume. And so we see in our medicines, which are innovative medicines, first in class and our best in class medicines for patients with really serious illnesses. You know, we're fortunate to be able to continue to deliver those um generally regardless of economic conditions and we intend on doing that.
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This post was written by Melanie Riehl