Amgen Profit Jumps, Revenue Disappoints

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Amgen Inc. said Wednesday its third-quarter earnings jumped due to increased sales of its drugs to treat anemia in cancer and kidney dialysis patients, but its revenue results still dipped below estimates.


The Thousand Oaks-based biotech company reported third-quarter net income of $967 million (77 cents per share), compared with $236 million (18 cents) for the like period a year earlier. Results from third quarter of 2004 included a $554 million charge related to its acquisition of Tularik Inc.


Revenue rose 16 percent to $3.2 billion.


Amgen said its second-quarter earnings would have been $1.1 billion (85 cents per diluted share), versus $839 million (64 cents) in the year-earlier period, if it had not incurred charges related to the acquisitions of Immunex Corp. and Tularik Inc. Revenue was not affected.


Analysts had forecast earnings of 83 cents per share on revenue of $3.26 billion.


Total product sales for the quarter rose 19 percent to $3 billion, while U.S. and international sales rose 17 percent to $2.5 billion and 30 percent to $543 million, respectively.


Sales of Aranesp, which is used to treat anemia in cancer and kidney dialysis patients increased 38 percent to $840 million, while U.S. sales rose to $542 million from $374 million the year before.


Sales of Epogen fell 12 percent to $599 million, reflecting decreases in wholesaler inventory levels and lower demand, the company said. Worldwide sales of Enbrel, for arthritis and psoriasis, soared 35 percent to $668 million. Combined worldwide sales of Neulasta and Neupogen rose 17 percent to $882 million.


The company reaffirmed its full-year outlook of $3.10 to $3.20 per adjusted share with percentage revenue growth in the mid-to-high teens.

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