Amgen 4Q profit drops 16 pct. on higher spending

The world's biggest biotech company, based in Thousand Oaks, California, said net income was $788 million, or $1.01 per share, for the three months ended Dec. 31. That was down from $934 million, or $1.08 per share, a year earlier.

Excluding one-time items, net income would have been $1.40 per share. That's 4 cents less than analysts expected, on average, according to research provider FactSet.

In after-hours trading, Amgen shares fell 21 cents to $82.86. They had fallen 22 cents in the regular session before the results were released.

The maker of anemia treatments Aranesp and Epogen said revenue rose 11 percent to $4.42 billion. Analysts predicted sales of $4.37 billion.

Sales were led by immune disorder treatment Enbrel, up 23 percent from the 2011 quarter to $1.16 billion, and Neulasta and Neupogen for fighting infection in cancer patients. They had a combined $1.31 billion in sales, down 1 percent.

Sales of Aranesp and Epogen fell 9 percent and 1 percent, respectively, to a combined $968 million.

Several newer drugs had double-digit jumps in revenue, including Prolia for osteoporosis, Xgeva for preventing fractures in cancerous bones and Sensipar for excessive calcium levels and a thyroid disorder.

"We enter 2013 with good momentum, a broad late-stage pipeline and a continued focus on building our business internationally," Amgen CEO Robert A. Bradway said in a statement.

The company expects 2013 earnings per share of $6.85 to $7.15. That's above the average prediction of analysts for $7 per share.

Amgen predicted 2013 revenue will fall between $17.8 billion to $18.2 billion, compared with Wall Street's forecast for sales of $17.75 billion.

Amgen noted its free cash flow rose to $5.2 billion for 2012, from $4.5 billion in 2011.

For the full year, net income was $4.35 billion, or $5.52 per share. That was up from $3.68 billion, or $4.04 per share, in 2011. The 2012 per-share results got a significant boost from a sharp reduction in the number of outstanding shares.

Revenue rose 11 percent in 2012, to $17.27 billion from $15.58 billion.

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