Amgen's COVID-19 manufacturing deal with Lilly helped compensate for lagging Aimovig, Enbrel in Q4

Amgen
With Enbrel and Aimovig sagging due to increased competition, Amgen helped compensate for the shortfall by making hundreds of millions from its COVID-19 manufacturing deal with Eli Lilly. (Business Wire) ()

As Amgen struggles to find growth from its own drugs, the company got a nice late-2021 revenue bump from its manufacturing partnership with Eli Lilly.

Monday afternoon, Amgen reported $575 million in fourth-quarter "other" revenues, nearly double the amount the company recorded in the fourth quarter of 2020. Revenues from the Lilly partnership drove the company's overall 3% revenue increase to $6.8 billion for the period, the company said.

Over the past year, Amgen pulled down $1.682 billion in "other" revenues, a result of its collaboration with Eli Lilly to help supply COVID-19 antibody treatments. In September 2020—anticipating a rush to manufacture and provide its COVID-19 meds—Lilly struck a deal with Amgen to help it produce the antibodies.

The agreement was in place before Lilly gained an FDA nod less than two months later for bamlanivimab, a treatment it developed along with AbCellera. In February 2021, Lilly won another authorization for its antibody cocktail of bamlanivimab and etesevimab.

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The partnership grew out of a consortium previously established by Lilly, Amgen, AstraZeneca, GlaxoSmithKline, Genentech and AbCellera to share monoclonal antibody secrets to get each up to speed on manufacturing best practices.

In the scale-up to produce COVID-19 drugs, such partnerships weren’t uncommon. Regeneron, for example, turned to Roche for help with antibody supplies.

Amgen’s deal with Lilly has helped it weather a trying period for some of its main offerings as total product sales fell 1% in the fourth quarter.

Sales of migraine medicine Aimovig fell 13% in the fourth quarter. While Aimovig volumes grew last year, those gains were more than offset by a lower net selling price, the company said. The price reduction has been brought on by increased competition.

Similarly, sales of rheumatoid arthritis drug Enbrel have sagged. Amgen reported an 11% drop in revenue for the quarter on Enbrel, which also faces an increasingly competitive immunology market.

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Also coming up short of analyst expectations for the quarter was Lumakras, which generated $45 million during the quarter compared with expectations of $61 million. Otezla, Neulasta and Repatha also missed consensus expectations.

For the fourth quarter, Amgen reported revenue of $6.8 billion, which was up 3% from the same period in 2020. For the year, Amgen’s revenue came in at $26 billion, a 2% increase from 2020, driven primarily by the Lilly partnership, the company said.