Amgen Reports a 40% Increase in Profit
THOUSAND OAKS, Calif. (AP) — The biotechnology company Amgen said on Monday that its profit rose 40 percent on a tax benefit and lower costs in the second quarter despite a continued decline in sales of anemia drugs.
The better-than-expected financial results signal a turnaround from a disappointing first-quarter report, prompting the company to raise its full-year profit outlook, and investors pushed shares higher in after-hours trading.
The company earned $1.27 billion, or $1.25 a share, up from a profit of $906 million, or 84 cents a share, during the year-earlier period. Revenue fell 1 percent, to $3.71 billion, from $3.76 billion.
Excluding one-time charges, the company expected profit of $1.29 a share, while analysts polled by Thomson Reuters had forecast a profit of $1.16 a share and sales of just under $3.58 billion. During the quarter, sales of the anemia drug Aranesp continued falling, this time dropping 16 percent, to $693 million cash til payday. Sales of the drug have fallen because of lingering safety concerns and stricter safety warnings. Meanwhile, sales of the anemia drug Epogen rose 3 percent, to $638 million.
But, overall operating expenses fell 13 percent, to just under $2.26 billion, while the company received a $115 million tax benefit.
The focus for Amgen is an osteoperosis drug, denosumab. A Food and Drug Administration panel of experts is scheduled to consider the drug on Aug. 13. After many quarters of falling anemia drug sales, Wall Street analysts say the new drug has blockbuster potential.
Stock in Amgen, which is based in Thousand Oaks, rose $1.91, or 3.1 percent, to $62.68 in after-hours trading.
Amgen Reports a 40% Increase in Profit
Hot News: Honeywell Posts 38% Drop in Earnings
Tags: EVENTS, Free, Music, economy, help, marketing, political, politics, writing
Print This Post
313 views
(No Ratings Yet)
Loading ...