DOW JONES NEWSWIRES
Amgen Inc.'s (AMGN) second-quarter earnings rose 40% despite a
small revenue decline as unusual items skewed comparisons.
The pharmaceutical company also raised its earnings guidance to
$4.80 to $4.95 a share from $4.55 to $4.75 a share, while it sees
revenue at the high end of its previously reduced forecast.
That, plus the second-quarter's results topping analysts'
expectations, helped send shares up 3.8% to $66.01 in after-hours
trading. The stock is now down only about 5% from its 52-week high
in September.
It has been a rough year for drug companies, as patients
economize and the stronger dollar slows sales overseas. Market
research firm IMS Health Inc. (RX) has said the U.S. pharmaceutical
market will likely shrink this year for the first time in decades,
a scenario borne out by recent results from drug giants.
Still, Amgen got a bit of good news earlier this month when a
study found its denosumab bone drug was superior to a rival
treatment from Novartis AG (NVS). On Monday, Amgen entered a pact
for GlaxoSmithKline PLC (GSK) to commercialize the compound for
postmenopausal osteoporosis indications in Europe, Australia, New
Zealand and Mexico. Amgen will retain full rights in other
areas.
"We are optimistic about our financial performance in 2009 and
are focused on making denosumab a success," said Amgen Chairman and
Chief Executive Kevin Sharer.
The company reported earnings of $1.27 billion, or $1.25 a
share, compared with $906 million, or 84 cents a share, a year
earlier. Excluding items such as acquisition-related and
stock-compensation costs, earnings rose to $1.29 a share from
$1.14.
Revenue fell 1% to $3.71 billion.
Analysts polled by Thomson Reuters were looking for per-share
earnings of $1.16, excluding items, on revenue of $3.58
billion.
U.S. product sales fell slightly, while international sales
dropped 6%. The international figure rose 1% excluding currency
fluctuations.
Worldwide sales of anemia drug Aranesp fell 16%, while Epogen
sales rose 2.6%. The drugs' sales have been hurt since a Food and
Drug Administration panel last year recommended curbing their use
because of concerns the drugs speed cancer tumor growth and shorten
survival times.
Sales of the rheumatoid arthritis drug Enbrel, which Amgen sells
in North America and Wyeth Inc. (WYE) distributes elsewhere, rose
6.9%. Last week, Wyeth said international sales of Enbrel climbed
6% to $736 million.
Combined sales of Neulasta and Neupogen, which are used to
prevent infections in patients receiving chemotherapy, were down
3.6%.
-By Jay Miller, Dow Jones Newswires; 212-416-2355;
jay.miller@dowjones.com