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Exploring Kyprolis’s Revenue Trend in 2017

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Steep rise in Kyprolis’s revenues

In 2016, Amgen’s (AMGN) Kyprolis generated revenues of ~$692 million, which was a sharp year-over-year (or YoY) growth of 35% from ~$512 million in 2015.

The chart below depicts Kyprolis’s sales growth trajectory since 1Q16.

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Geographic market expansion trends

In November 2015, Kyprolis, in combination with dexamethasone and Revlimid (lenalidomide), received approval in Europe for the therapy of multiple myeloma (or MM) patients who have previously received at least one therapy.

After its approval in Europe, Kyprolis has witnessed a rapid rise in market share in the region. During 4Q16, in a second-line MM setting in Europe, the drug’s new patient share surpassed 20%. In the third-line MM setting, the new patient share exceeded 30%.

In 2015, Japan’s Ministry of Health, Labour and Welfare approved Kyprolis and designated it as an orphan drug for the treatment of “relapsed or refractory multiple myeloma.” This approval has also contributed significantly to Kyprolis’s sales growth.

The high unmet need for an effective drug for multiple myeloma, coupled with favorable reimbursement scenario in some regions, has been driving the rapid increase in the drug’s sales volume.

US market trends

In 1Q17, Kyprolis generated revenues of ~$190 million compared to $154 million in 1Q16. The drug witnessed 23% year-over-year sales growth, which was primarily volume driven. The US held more than 70% of the drug’s revenue share.

In the US, the drug has been approved as a second- and third-line therapy for multiple myeloma (or MM). Around 33% of patients in second- and third-line MM therapy regimes in the US are currently being treated with Kyprolis. Despite the launch of new drugs, Kyprolis has managed to achieve 50% new patient share in these two indications. Celgene’s (CELG) Pomalyst is expected to give Kyprolis stiff competition for market share.

With growing expansion in international markets and robust clinical trial data compared to Velcade, Kyprolis is expected to witness significant revenue growth in 2017.

Amgen’s Kyprolis also faces robust competition from Takeda’s (TKPYY) Velcade and Novartis’s (NVS) Farydak. Kyprolis’s revenue performance could positively impact Amgen’s stock price as well as the iShares NASDAQ Biotechnology ETF (IBB). Amgen makes up ~7.6% of IBB’s total portfolio holdings.

In the next article, we’ll discuss Amgen’s blockbuster drug Neulasta.

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