How Amgen Makes Billions On Just A Few Drugs
As disagreeable as chemotherapy is, infections could make it even worse. Because the “outdated saying” goes, in case you can scale back most cancers sufferers’ danger of sepsis, the world will beat a path to your door. Amgen Inc. (AMGN), an American multinational biopharmaceutical firm, has achieved that and prolonged tons of of 1000’s of lives within the course of.
Based in 1980 as Utilized Molecular Genetics, Amgen’s present specialty is human therapeutics, creating remedies for extreme bronchial asthma, plaque psoriasis, and small-cell lung most cancers.
Amgen employs tons of of scientists, making it one of many largest employers in Ventura County, California. The corporate’s headquarters are situated in Thousand Oaks, California. Whereas the corporate’s product line is remarkably small (roughly 26 merchandise), Amgen is likely one of the world’s largest unbiased biotechnology firms.
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Key Takeaways
- Amgen employs tons of of scientists, making it one of many largest personal employers in Ventura County, California.
- Whereas the corporate’s product line is small (roughly 26 merchandise), Amgen is likely one of the world’s largest unbiased biotechnology firms.
- The corporate’s top-selling medication in 2021 had been ENBREL, Prolia, Otezla, XGEVA, Neulasta, Aranesp, KYPROLIS, Repatha, and Nplate.
High-Promoting Amgen Merchandise
In 2021, the corporate generated a income of $26 billion. The corporate’s top-selling medication had been ENBREL, Prolia, Otezla, XGEVA, Neulasta, Aranesp, KYPROLIS, Repatha, and Nplate.
Enbrel (etanercept) is Amgen’s top-selling product. It’s used to fight extreme arthritis and comparable inflammatory illnesses. First synthesized within the Nineteen Nineties, it was offered to an organization that Amgen later purchased (Immunex) and is patented via 2028. The price of Enbrel is $1,640.91 per weekly 50-milligram dose. To this point, generic makes an attempt at replicating the drug have solely been capable of scale back that worth by a few hundred {dollars}. Amgen offered $4.47 billion value of Enbrel within the fiscal yr 2021.
One other one in every of Amgen’s top-selling medication is Neulasta. Neulasta (pegfilgrastim) is used to deal with neutropenia; it acts as a white blood cell stimulant. The price of Neulasta is $6,417.99 per dose. Amgen offered $1.73 billion value of Neulasta within the fiscal yr 2021.
Within the fiscal yr 2021, Amgen reported $4.47 billion in gross sales from ENBREL, $1.48 billion from Aranesp, and $1.12 billion from KYPROLIS.
Amgen’s second-tier choices—XGEVA and Prolia–additionally comprise a big portion of the corporate’s gross sales. XGEVA (denosumab) prevents skeletal-related occasions, and Prolia (denosumab) treats osteoporosis. The price of XGEVA is $2,717.15 per dose. The price of Prolia is $1,477.16 per remedy each six months.
Aranesp and KYPROLIS are different merchandise that generate huge gross sales for Amgen. Aranesp (darbepoetin alfa) is a remedy for anemia, and KYPROLIS (carfilzomib) is an anti-cancer drug. The associated fee for 4 milliliters of Aranesp is about $775. The associated fee for one dose of KYPROLIS is about $500.
Small Product Line Generates Big Income
For a pharmaceutical firm, 26 merchandise is comparatively small. For instance, Pfizer has greater than 300 merchandise listed on its web site and generated $81.3 billion in revenues in 2021. Amgen generated $26 billion in revenues in 2021, almost one-third of Pfizer’s complete revenues, with about one-twelfth of the merchandise Pfizer has. Pfizer boasts about 79,000 workers worldwide, whereas Amgen says it has about 22,000.
So, Amgen has one-third of the staff, one-twelfth of the merchandise, and generates one-third of Phizer’s complete revenues. With numbers like this, Amgen demonstrates that it’s a powerhouse within the pharmaceutical business.
What Does Amgen Produce?
Amgen makes use of genetics to develop remedies for critical sicknesses. Some examples of its merchandise are ENBREL, Prolia, Otezla, and XGEVA.
What Was Amgen’s First Drug?
Amgen’s first drug was Epogen, created in 1983 by a staff of scientists led by Fu-Kuen Lin.
What Does Amgen Do?
Amgen is a pharmaceutical firm that makes use of superior genetics to make organic medicines.
The Backside Line
Amgen and its growth staff have supplied aid to many sufferers which might be struggling. The corporate has discovered its market and generated large income by focusing its sources on assuaging bodily ache.
The corporate faces growing competitors from generic merchandise and biosimilar remedies, however its current and new merchandise, akin to LUMAKRAS (for non-small cell lung most cancers) and TEZPIRE (for extreme bronchial asthma), contributed to progress in 2021 and thru 2022, though within the third quarter of 2022 Amgen skilled a 1% lower in complete revenues year-over-year. Nonetheless, the corporate expects complete revenues in 2022 to equal about $26 billion and earnings per share of $11.46 to $12.17 (GAAP foundation).
