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Biotech Amgen beats expectations amid higher sales

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The world’s biggest Biotech company, Amgen, increased its second-quarter net income eight per cent on higher sales for its top-selling drugs and a gain from selling its share of an experimental medicine.

The results on Thursday beat Wall Street expectations, and Amgen shares jumped in after-hours trading. The company also raised its earnings and revenue forecasts for the year.

The maker of osteoporosis drug Prolia and Enbrel for inflammatory disorders said net income was $US1.27 billion ($A1.23 billion), or $US1.61 per share, up from $US1.17 billion, or $US1.25 a share, a year earlier.

Amgen’s adjusted results beat the expectations of analysts surveyed by FactSet by 29 cents a share, and revenue came in $US400 million higher than expected.

Excluding one-time items, Amgen’s second-quarter net income was $US1.43 billion, or $US1.83 a share, up from $US1.28 billion, or $US1.37 per share, in 2011’s second quarter.

Revenue totalled $US4.48 billion, up 13 per cent from $US3.96 billion a year ago.

Robert Bradway, who took over as Amgen’s CEO in May, told analysts that Amgen raised its financial forecast due to its strong performance in the first half and momentum from rising sales and promising drugs in development.

He noted Amgen has begun a second late-stage study of a new osteoporosis drug and was planning a late-stage study of a drug to treat a thyroid disorder in kidney disease patients on dialysis.

It’s also starting a late-stage study of a cholesterol drug meant for patients who can’t bring their bad cholesterol down enough with drugs currently available.

“This was a fantastic quarter. The new CEO’s clearly getting things off with a bang,” said Edward Jones analyst Judson Clark, adding, “We wouldn’t expect that to repeat itself.”

Clark said that’s because this quarter had a one-time gain of $US206 million, and stock buybacks reduced the number of outstanding shares by 16 per cent. The lower share total, in return, increased earnings per share.

The $US206 million payment came from Takeda Pharmaceutical. The two companies, which have been collaborating since 2008 on an experimental drug called motesanib for a type of lung cancer, changed their agreement, giving Takeda all rights to develop and sell it.