Amgen Profit Rises 13%, 2016 Outlook Raised
July 27 2016 - 5:10PM
Dow Jones News
Amgen Inc. said its second-quarter earnings rose 13% on
better-than-expected revenue growth, which was again driven by
sales of key drugs such as Enbrel.
The Thousand Oaks, Calif., biotechnology company's per-share
earnings, excluding certain items, also beat expectations.
Amgen again raised its 2016 outlook and now expects per-share
earnings of $11.10 to $11.40 on revenue of $22.5 billion to $22.8
billion. The company previously had projected per-share profit of
$10.85 to $11.20 and revenue of $22.2 billion to $22.6 billion.
Like many other drugmakers, Amgen has been counting on
introductions of new medicines as some of the company's older
biotech drugs face competition from lower-priced treatments.
Chief Executive Robert A. Bradway said in prepared remarks that
Amgen is on track to meet or exceed its long-term targets.
"We are in the early stages of a new product launch cycle and
have several additional pipeline opportunities rapidly nearing
regulatory milestones," Mr. Bradway stated.
These include the company's recently submitted filing with the
Food and Drug Administration seeking approval for osteoporosis drug
romosozumab. An FDA panel also recently voted in favor of
recommending approval for Amgen's biosimilar version of AbbVie's
blockbuster rheumatoid arthritis drug Humira.
Investors will be listening on the conference call for updates
on Amgen's drug pipeline and its strategy for biosimilars—less
expensive copycat versions of biotech drugs.
Amgen also reported progress for anti-cholesterol drug Repatha,
which received FDA approval in August. In the latest quarter,
Repatha contributed sales of $27 million, compared with $16 million
in the first quarter. Analysts had expected Repatha sales of $26
million, according to FactSet. The rollout of Repatha has been slow
amid resistance from some health insurers, pharmacy-benefit
managers and other payers.
Amgen also is facing competition from biosimilar versions of
some of its own drugs, including Novartis AG's Zarxio, the Swiss
drugmaker's version of Neupogen. In the latest quarter, Neupogen
sales slumped 23% to $196 million.
Meanwhile, sales of rheumatoid arthritis and psoriasis drug
Enbrel rose 10% to $1.48 billion in the quarter, driven by higher
prices. An FDA panel also has urged approval of Novartis's
biosimilar drug etanercept—a copycat version of Enbrel.
Over all, Amgen reported a profit of $1.87 billion, or $2.47 a
share, up from $1.65 billion, or $2.15 a share, a year earlier.
Excluding acquisition-related expenses and other items, adjusted
per-share earnings rose to $2.84 from $2.57. Revenue increased 5.9%
to $5.69 billion.
Analysts polled by Thomson Reuters expected per-share profit of
$2.74 and revenue of $5.58 billion.
Demand for Amgen's bone drugs continued to grow, with Xgeva
sales rising 15% to $381 million and Prolia sales climbing 30% to
$441 million.
Sales of multiple myeloma drug Kyprolis jumped 45% to $172
million, also driven by higher demand. Amgen gained Kyprolis with
its $10.4 billion acquisition of Onyx Pharmaceuticals Inc. in
2013.
Neulasta sales fell 1% to $1.15 billion, amid lower demand that
was partly offset by higher pricing in the U.S.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
July 27, 2016 16:55 ET (20:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Novartis (NYSE:NVS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Novartis (NYSE:NVS)
Historical Stock Chart
From Sep 2023 to Sep 2024