Amgen Inc.'s (AMGN) second-quarter earnings edged lower as
increased expenses for acquisition- and reorganization-related
charges and other items masked the biopharmaceutical giant's
revenue growth.
For the year, the company raised its per-share earnings
projection to $7.30 to $7.45, from its previous view for above the
midpoint of $7.05 to $7.35, and now expects revenue at the upper
end of its previous projected range of $17.8 billion to $18.2
billion.
Amgen, the world's largest independent biotechnology company, is
in a transitional period as it looks to expand further into
international markets, gain approvals for new experimental drugs,
and increase sales of its arthritis and osteoporosis drugs. Many of
the company's core products face the potential of new competition
as they lose patent protection in the coming years.
Chairman and Chief Executive Robert A. Bradway said, "We saw
solid product trends during the second quarter and are carrying
good momentum into the second half."
Amgen reported a profit of $1.26 billion, down from $1.27
billion a year earlier. On a per-share basis, earnings were up at
$1.65 from $1.61 on fewer shares outstanding. Excluding
acquisition- and restructuring-related impacts and other items,
adjusted earnings were up at $1.89 from $1.83. Revenue increased
4.5% to $4.68 billion.
Analysts polled by Thomson Reuters recently expected $1.74 and
$4.49 billion.
Research-and-development expenses increased 17%, mostly in
support of its later-stage clinical programs.
Neulasta sales rose 10% amid price increases, higher wholesaler
inventory and a Medicaid rebate adjustment.
Sales of arthritis drug Enbrel were up 9%, mostly owing to
higher prices.
The company's osteoporosis drugs, Xgeva and Prolia, reported
sales growth of 39% and 57%, respectively.
Shares were up 1.1% at $112.46 in recent after-hours trading as
adjusted earnings and revenue beat expectations. Through the close,
the stock is up 29% this year.
Write to Tess Stynes at tess.stynes@wsj.com
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