<Results Analysis> 3Q23 results in-line, growth will continue to be driven by growing portfolio through M&As
- 3Q23 non-GAAP earnings per share was up 6% y-o-y to US$4.96, in-line with consensus.
- Management raises FY23 revenue guidance by 4.4% following Horizon Therapeutics acquisition.
- In the near-term, we expect Amgen will continue enriching its portfolio through M&As. Maintain BUY with TP of US$310.
What’s new
3Q23 results were in-line, with positive indications from acquisition of Horizon Therapeutics in Oct 2023. Amgen saw its 3Q23 non-GAAP earnings per share up by 6% y-o-y to US$4.96, and its 3Q23 revenues up 4% y-o-y to US$6.9bn, both in-line with consensus. The completion of acquisition of Horizon Therapeutics in Oct 2023 for c.US$27.8bn further positions Amgen as a leader in first-in-class, early-in-lifecycle medicines which treat rare inflammatory diseases. Management has raised FY23 revenue guidance by 4.4% to US$28.0 to US$28.4bn to reflect the financial results of Horizon Therapeutics.
Our view
Amgen’s portfolio will continue to be driven by M&As. We believe the acquisition of Horizon Therapeutics will be one of the many M&As by Amgen to enrich their product portfolio and will continue to drive growth. The acquisition of Horizon Therapeutics gives Amgen a significant rare disease business including TEPEZZA (teprotumumab-trbw), KRYSTEXXA (pegloticase) and UPLIZNA (inebilizumab-cdon). With Amgen having a global network available in c.100 countries, these rare disease products would be able to leverage this global presence to bring these medicines to patients around the world and drive growth.