Anemic Sales Lowers Amgen’s Profit, Expectations

0

Amgen Inc. cut its full-year revenue outlook Thursday after reporting a continued sales decline in its flagship anemia drug and other products, which lowered first-quarter net income.

After the markets closed, the Thousand Oaks biotech reported net income of $1.02 billion (98 cents per share) compared with $1.1 billion ($1.01) a year ago. Revenue dropped 8 percent to $3.31 billion.

Excluding one-time charges, the company said it earned $1.08 per share, which was still lower than analyst expectations of $1.15 per share on revenue of $3.63 billion, according to Reuters Estimates.

Sales of its anemia drug Aranesp were down 18 percent and rheumatoid arthritis drug Enbrel sales fell 20 percent. Neulasta and Neupogen, which prevent infections in chemotherapy patients, fared the best, down only 1 percent. Aranesp sales have been falling for several quarters because of safety concerns and stricter warnings for the anemia treatment.

“Our first quarter sales were affected by the continued deterioration of the global economy which has led to changes in patient and physician behavior,” said Chief Executive Kevin Sharer in a statement. He added that U.S. approval of its new osteoporosis drug denosumab, which could occur this year, should boost revenues.

The company cut revenue guidance for fiscal 2009 to between $14.4 million and $14.8 million, down from prior guidance of $14.8 million to $15.2 million. The company reaffirmed its outlook for $4.55 to $4.75 per share in net income.

Amgen shares, which closed up $1.71, or 4 percent, to $46.82 in regular Nasdaq trading, dropped more than 2 percent in after-market trading.

No posts to display