Earnings season is in full swing in the pharma sector with major players sharing their latest results.
On Tuesday (February 4), Amgen (NASDAQ:AMGN), Merck (NYSE:MRK) and Pfizer (NYSE:PFE) released financial results for the most recent quarter, providing critical data points for evaluating investment potential.
Amgen reports strong Q4, will focus on trials in 2025
Amgen’s financial results for Q4 and the full 2024 year reveal quarterly revenue of over US$9 billion, beating analysts’ estimates of US$8.87 billion. Revenue for the year came in at US$33.42 billion, ahead of projections of US$33.19 billion, driven by an overall increase in the volume of demand for its products.
An 11 percent year-on-year increase in product sales was primarily by the pharmaceutical company’s strong performance in oncology and immunology therapies, along with sales of Repatha, which treats high cholesterol, and Evenity, which treats osteoporosis in postmenopausal women.
Earning per share (EPS) also beat estimates of US$5.08, coming in at US$5.31.
Amgen performance, February 4, 2025.
Chart via Google Finance.
Looking ahead, Amgen’s revenue guidance for fiscal year 2025 was between US$34.3 billion and US$35.7 billion, in line with the average estimate of US$34.53 billion. Phase III trials of its weight management candidate MariTide, a dual GIP and GLP-1 receptor modulator, are expected to begin in H1 2025.
While Amgen’s shares have decreased by over ten percent year-on-year, they have increased by nearly 11 percent year-to-date. The stock closed with a marginal gain of 0.05 percent at US$289.01.
Merck beats on revenue, but Gardasil sales decline
Merck fell by nearly 11 percent ahead of the opening bell on Tuesday after its Q4 and full-year 2024 financial results showed adjusted sales revenue for its key vaccine, despite exceeding sales and profit expectations.
The company reported revenue of US$15.62 billion, beating analysts estimates of US$15.55 billion.
Earnings per share for the quarter were also ahead of expectations, US$1.72 compared to US$1.69; however, earnings per share were US$6.74 for the full year, compared to analysts’ estimates of US$7.62.
Sales reached US$15.6 billion in Q4, an increase of 7 percent from the prior year.
Full-year sales also rose by 7 percent to US$64.2 billion, driven by sales of Keytruda, the company’s leading cancer therapy. Keytruda brought in US$29.5 billion, representing an annual growth of 18 percent.
The company also announced positive topline results from a Phase 3 trial evaluating a subcutaneous formulation of pembrolizumab used in combination with Keytruda in adult patients with metastatic non-small cell lung cancer.
However, sales of Gardasil and Gardasil 9, two HPV vaccines, declined by 3 percent to US$8.6 billion.
Merck performance, February 4, 2025.
Chart via Google Finance.
For its 2025 fiscal year, Merck expects full-year adjusted EPS to be between US$8.88 and US$9.03, and revenue to fall somewhere between US$64.1 billion and US$65.6 billion. Analysts had been projecting EPS of US$9.13 and revenue of US$67.07 billion. The company also withdrew its US$11 billion sales target for Gardasil by 2030.
“This sales range reflects a decision to temporarily pause shipments of GARDASIL/GARDASIL 9 into China beginning February 2025 through at least mid-year,” the company said in an accompanying statement. According to Biopharma Dive, CEO Rob Davis clarified in the firm’s earnings call that the pause will “facilitate a more rapid reduction of inventory and help support the financial position” of its Chinese distribution partner, Zhifei Biological Products.
“China still represents a significant long-term opportunity for Gardasil given the large number of females, and now males with our recent approval, that are not yet immunized,” Davis said.
Pfizer discusses Seagen acquisition impact and 2025 outlook
Pfizer’s Q4 and 2024 financial results show revenue at US$17.8 billion, an increase of 22 percent compared to the previous year and exceeding expectations of US$14.31 billion. Revenue, excluding COVID-19-related therapies, was largely driven by Seagan’s portfolio of cancer therapies following its acquisition in December 2023.
However, full-year revenue fell slightly short at US$63 billion, compared to projections of US$63.6 billion. EPS was also below analysts’ estimates of US$0.71, coming in at US$0.63.
Its share price fell by 4.3 percent in early trading and ended the day down 1.26 percent.
Pfizer performance, February 4, 2025.
Chart via Google Finance.
Looking ahead, Pfizer will continue to focus on growing its pipeline of cancer drugs in 2025, with three potential therapies awaiting regulatory approval in 2025. The company will also initiate clinical trials for therapies related to inflammation, immunology, and internal medicine. For its 2025 fiscal year, Pfizer is projecting revenue of between US$61 billion and US$64 billion, aligning with the average estimate of US$63.22 billion.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
