Tags: amgen | profit | estimates | sales

Amgen Tops Profit Estimates on Rising Sales

Thursday, 26 July 2012 05:23 PM

Amgen Inc., the world’s largest biotechnology company, said second-quarter profit rose 8 percent, beating analyst estimates on higher-than-expected drug sales. The company raised its 2012 forecast.

Net income increased to $1.27 billion, or $1.61 a share, from $1.17 billion, or $1.25 a year earlier, the Thousand Oaks, California-based company said in a statement Thursday. Earnings, excluding items, of $1.83 a share topped by 28 cents the average $1.55 of 19 analyst estimates compiled by Bloomberg. Revenue jumped 13 percent to $4.5 billion.

Amgen, which has gained about 35 percent since naming Robert Bradway chief executive officer in May, is trading at its highest level in six years as investors grow confident in the new CEO, said Michael Yee, an analyst with RBC Capital Markets Corp. in San Francisco.

“It’s clear to us that investors are gaining more confidence in Amgen’s mid- to long-term outlook,” Yee said in an interview. “There’s a new CEO and head of R&D to bring fresh leadership. They have been aggressively buying back stock, will consistently raise the dividend, and the pipeline gets no credit at all.”

The company raised its annual adjusted earnings forecast to $6.20 to $6.35 a share from a previous projection of $5.90 to $6.15 a share.

Amgen, with annual sales that quadrupled to $15.6 billion during the 11-year run of Bradway’s predecessor, Kevin Sharer, has shored up declining revenue from its former core anemia drugs by signing long-term deals, and is benefiting from revised Medicare regulations allowing for higher doses. At the same time, the company’s medicines to reduce bone fractures in cancer and osteoporosis patients have expanded since winning U.S. regulatory approval in 2010.

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