Amgen 4Q profit drops 16 pct. on higher spending

January 23, 2013 by Linda A. Johnson

Drugmaker Amgen Inc. on Wednesday posted a 16 percent drop in fourth-quarter profit, as higher costs for production, marketing, research and other items offset higher sales for many of its biologic medicines. The results fell short of Wall Street expectations.

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 and Epogen said revenue rose 11 percent to $4.42 billion. Analysts predicted sales of $4.37 billion.

Sales were led by 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 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 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.

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.

Explore further: Qualcomm 3Q results beat Wall Street estimates

shares

Related Stories

Qualcomm 3Q results beat Wall Street estimates

July 20, 2011
(AP) -- Wireless chip-maker Qualcomm Inc.'s results for the latest quarter beat Wall Street's expectations, and its projections for the current quarter are also above analysts' estimates.

Recommended for you

Exploring the potential of human echolocation

June 25, 2017
People who are visually impaired will often use a cane to feel out their surroundings. With training and practice, people can learn to use the pitch, loudness and timbre of echoes from the cane or other sounds to navigate ...

Team eradicates hepatitis C in 10 patients following lifesaving transplants from infected donors

April 30, 2017
Ten patients at Penn Medicine have been cured of the Hepatitis C virus (HCV) following lifesaving kidney transplants from deceased donors who were infected with the disease. The findings point to new strategies for increasing ...

'bench to bedside to bench': Scientists call for closer basic-clinical collaborations

March 24, 2017
In the era of genome sequencing, it's time to update the old "bench-to-bedside" shorthand for how basic research discoveries inform clinical practice, researchers from The Jackson Laboratory (JAX), National Human Genome Research ...

The ethics of tracking athletes' biometric data

January 18, 2017
(Medical Xpress)—Whether it is a FitBit or a heart rate monitor, biometric technologies have become household devices. Professional sports leagues use some of the most technologically advanced biodata tracking systems to ...

Financial ties between researchers and drug industry linked to positive trial results

January 18, 2017
Financial ties between researchers and companies that make the drugs they are studying are independently associated with positive trial results, suggesting bias in the evidence base, concludes a study published by The BMJ ...

Best of Last Year – The top Medical Xpress articles of 2016

December 23, 2016
(Medical Xpress)—It was a big year for research involving overall health issues, starting with a team led by researchers at the UNC School of Medicine and the National Institutes of Health who unearthed more evidence that ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.