Tags: Amgen | biotech | profit | outlook

Amgen Raises Outlook as Profit Tops Street View

Tuesday, 23 Oct 2012 06:39 PM

Amgen Inc. on Tuesday reported higher-than-expected third-quarter profit in its first full quarter under Chief Executive Robert Bradway and it raised its full-year earnings and revenue forecasts.

The quarterly results were helped by strong sales of its rheumatoid arthritis drug Enbrel and lower expenses.

Excluding items, Amgen posted adjusted earnings of $1.67 per share. Analysts on average expected $1.47 per share, according to Thomson Reuters I/B/E/S, marking the second successive quarter that the company exceeded Wall Street estimates by at least 20 cents.

The world's largest biotechnology company said net profit rose to $1.1 billion, or $1.41 per share, from $454 million, or 50 cents per share, a year ago, when it took a large charge to settle a probe related to sales and marketing practices.

The company now expects 2012 adjusted earnings of $6.50 to $6.60 per share and revenue of $17.2 billion to $17.3 billion. It had previously forecast earnings of $6.20 to $6.35 per share and revenue of $16.9 billion to $17.2 billion.

Revenue for the quarter rose 10 percent to $4.32 billion, exceeding Wall Street estimates of $4.25 billion

Sales of Enbrel rose 17 percent to $1.08 billion, driven by price increases and higher demand for the drug that is also used to treat psoriasis.

Xgeva, a new drug to prevent fractures from cancer that has spread to the bones, had sales of $201 million, slightly ahead of Wall Street consensus estimates for $199 million and 12 percent higher than the previous quarter.

The related osteoporosis drug Prolia, however, saw sales fall 8 percent from the prior quarter to $110 million, due in part to wholesaler stocking issues, the company said.

Amgen's older anemia drug Epogen proved something of a bright spot. Its sales, which have been in decline for years because of safety concerns and dosage restrictions, rose 3 percent from a year ago to $491 million, topping analyst expectations of about $476 million.

Sales of its other red blood cell booster, Aranesp, which have been hit with similar safety and usage concerns, fell 17 percent to $497 million, missing Wall Street estimates for $534 million.

Amgen shares rose 1.4 percent to $88.50 in extended trading from their Nasdaq close at $87.32. The shares, which have been on a tear, are up about 36 percent since the start of the year.

© 2017 Thomson/Reuters. All rights reserved.

 
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Amgen Inc. on Tuesday reported higher-than-expected third-quarter profit in its first full quarter under Chief Executive Robert Bradway and it raised its full-year earnings and revenue forecasts.
Amgen,biotech,profit,outlook
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2012-39-23
Tuesday, 23 Oct 2012 06:39 PM
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