Amgen Inc. (AMGN: Quote) said Thursday its second quarter profit grew 8 percent from last year, mainly on robust sales of blockbuster arthritis drug Enbrel, bone loss therapies Xgeva and Prolia, as well as contributions from growth phase drugs. Results were also helped by modest increase in sales of lead infection drugs Neulasta and Neupogen, while anemia drugs Aranesp and Epogen declined.
Amgen also benefited from changes to a collaboration agreement with Takeda Pharmaceuticals that brought in significant income for the quarter. Amgen's quarterly earnings as well as revenues easily topped Street estimates.
Moving forward, Amgen raised its revenue and adjusted earnings outlook for the full year 2012.
Following the news, Amgen shares touched a high for the year, with the stock up 4.67% at $83.00 in after-hours trade on the Nasdaq. In the past year, the stock has ranged $47.66 - $80.25.
Amgen's total revenue for the quarter rose 13 percent from last year. Total product sales were up 8 percent from last year, with growth in both U.S. and International sales.
Sales of rheumatoid arthritis drug Enbrel increased 11 percent on higher average net sales price, as well as increases in unit demand and wholesaler inventories.
Combined sales of lead infection drugs Neulasta and Neupogen edged up 2 percent from last year. Among smaller drugs, sales of Xgeva, for reduction of fractures in cancer patients, totaled $179 million, and Prolia, used in postmenopausal women with risk of osteoporosis, surged to $120 million. Sales of growth-phase products rose 15 percent from last year on higher unit demand.
Amgen's anemia drug Aranesp, which accounts for sizable sales, recorded an 8 percent drop in sales on lower unit demand. Another anemia drug Epogen, registered a sales decline of 3 percent on lower dose utilization.
Other revenues for the quarter surged to $277 million from $66 million last year, led mainly by changes to an 2008 motesanib collaboration with Takeda Pharmaceutical Co. Limited. Amgen said it modified its agreement with Takeda to grant exclusive worldwide development rights for motesanib, recognizing income of $206 million.
Thousand Oaks, California-based Amgen reported second quarter net income of $1.266 billion or $1.61 per share, compared to $1.170 billion or $1.25 share last year.
Excluding items, adjusted earnings for the quarter were $1.433 billion or $1.83 per share, compared to $1.28 billion or $1.37 per share last year.
On average, 23 analysts polled by Thomson Reuters expected earnings of $1.54 per share for the quarter. Analysts' estimates typically exclude special items.
Amgen reported quarterly revenues of $4.48 billion, compared to $3.96 billion last year. Twenty-one analysts had a consensus revenue estimate of $4.08 billion.
During the quarter, Amgen repurchased about 17 million shares of common stock at a total cost of $1.2 billion, with an average price of $69.31.
Amgen now expects fiscal year 2012 adjusted earnings of $6.20 to $6.35 per share, and revenues of $16.9 billion to $17.2 billion. Earlier the company estimated 2012 adjusted earnings of $5.90 to $6.15 per share, and revenue of $16.1 billion to $16.5 billion. Net earnings for the year are still expected in the range of $5.41 to $5.67 per share.
Street analysts currently expect earnings of $6.15 per share on revenue of $16.38 billion for 2012.
AMGN closed Thursday at $79.29, up 1.71%, on a volume of 5.0 million shares.
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by RTT Staff Writer
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