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Amgen: Expect Nearly Flat Revenues in Q3

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Amgen’s revenue estimates

As we discussed earlier, analysts expect Amgen (AMGN) to report nearly flat revenues at $5.77 billion during the third quarter. Amgen’s product portfolio includes human therapeutics.

The above chart compares Amgen’s revenues since the first quarter of 2017 with the third-quarter estimates. New products are expected to deliver double-digit growth, while legacy brands are expected to offset the growth during the quarter.

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Revenue performance

Amgen’s revenue estimates for a few key products during the third quarter are as follows:

  • Kyprolis (carfilzomib), a drug that treats relapsed multiple myeloma, is expected to report revenue growth during the third quarter. The growth will likely be driven by its strong performance in international markets and stable performance in the US markets.
  • Neulasta (pegfilgrastim), a blockbuster drug from Amgen, is expected to report lower sales during the third quarter following lower sales due to myelosuppressive chemotherapy agents.
  • Prolia (denosumab), a drug that treats postmenopausal osteoporosis, is expected to report revenue growth during the third quarter. The growth will likely be driven by a continuous increase in new patients and repeat doses for existing patients.
  • Sensipar/Mimpara (cinacalcet), a drug that treats secondary hyperparathyroidism, is expected to report revenue growth during the third quarter. The growth will likely be driven by volume growth during the quarter.

Apart from these drugs, Enbrel, another blockbuster drug from Amgen, is expected to report lower sales during the third quarter. The decline will likely be driven by lower realized prices during the quarter.

Notably, the VanEck Vectors Biotech ETF (BBH) holds 8.5% of its total investments in Amgen, 7.1% in Gilead Sciences (GILD), 5.2% in Allergan (AGN), and 4.9% in Biogen (BIIB).

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