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Amgen quarterly profit falls

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Amgen Inc says its fourth-quarter profit fell 8.5 per cent as its expenses for taxes and for producing and selling drugs rose faster than its revenue.

The world’s largest biotech company said its net income was $US934 million ($A881.84 million), or $US1.08 ($A1.02) per share, down from $US1.02 billion ($A963.04 million), also $US1.08 ($A1.02) per share, a year earlier.

Excluding one-time items, Amgen said it earnt $US1.04 billion ($A981.92 million), or $US1.21 ($A1.14) per share, down six per cent from $US1.1 billion ($A1.04 billion), or $US1.17 ($A1.10) per share, in 2010’s fourth quarter.

Its adjusted income excluded costs for severance payments, stock options, expenses related to selling a manufacturing plant and amortization of product technology rights acquired in a prior year.

The company’s quarterly revenue rose three per cent to $US3.97 billion ($A3.75 billion) from $US3.84 billion ($A3.63 billion).

Analysts on average expected adjusted earnings of $US1.22 ($A1.15) per share and revenue of $US3.92 billion ($A3.70 billion) for the fourth quarter, according to FactSet.

“We exited 2011 with good momentum, and the outlook for 2012 is even stronger,” CEO Kevin Sharer, who is stepping down in May, said in a prepared statement.

Amgen said it expected to earn $US5.90 ($A5.57) to $US6.15 ($A5.81) per share for 2012, excluding one-time items, and it forecast revenue of about $US16.3 billion ($A15.39 billion). Analysts were expecting $US5.97 ($A5.64) per share in adjusted earnings and $US16.06 billion ($A15.16 billion) in revenue for the year.

Sales of Neulasta and Neupogen, for treating a decline of infection-fighting white blood cells caused by cancer and other disorders, rose in the US but fell slightly in other markets. They brought in a total of $US998 million ($A942.27 million) and $US321 million ($A303.07 million), respectively.

Earlier Thursday, the maker of biologic drugs for cancer and blood disorders said it plans to buy cancer therapy developer Micromet Inc for $US1.16 billion ($A1.10 billion) in cash to boost its oncology pipeline.

Founded in Germany and based in Rockville, Maryland, Micromet is developing an experimental antibody-based drug, blinatumomab. It’s currently in mid-stage testing to treat leukemia and in clinical development for the treatment of non-Hodgkin lymphoma.

The purchase is Amgen’s largest since it bought BioVex Group last year in a deal worth up to $US1 billion ($A944.15 million), including milestone payments.

For the full year, Amgen reported net income of $US3.68 billion ($A3.47 billion), or $US4.04 ($A3.81) per share, down 20 per cent from $US4.63 billion ($A4.37 billion), or $US4.79 ($A4.52) per share in 2010.

Adjusted income was $US4.86 billion ($A4.59 billion), or $US5.33 ($A5.03) per share, down three per cent from $US5.02 billion ($A4.74 billion), or $US5.21 ($A4.92) per share. Revenue was up three per cent to $US15.58 billion ($A14.71 billion), from $US15.05 billion ($A14.21 billion).

Analysts were expecting adjusted income of $US5.33 ($A5.03) per share on average and revenue of $US15.51 billion ($A14.64 billion).

Amgen shares rose 67 US cents following the after-hours report. They ended regular trading Thursday down $US1.13 ($A1.07), or 1.6 per cent, at $US68.08 ($A64.28).