THOUSAND OAKS (dpa-AFX) - Amgen Inc. (AMGN) said Monday its third-quarter profit sharply declined from last year, as expensive settlement charges largely offset a three percent growth in drug sales. However, quarterly earnings, excluding items, topped Wall Street estimates, as did sales. The biotechnology company also raised its non-GAAP earnings and sales outlook for the full year 2011.
Thousand Oaks, California-based Amgen reported third-quarter earnings of $454 million or $0.50 per share, a sharp decline from $1.23 billion or $1.28 per share last year.
Results for the quarter include a $780 million payment Amgen made to settle allegations relating to its sales and marketing practices.
Excluding items, non-GAAP earnings for the quarter was lower at $1.28 billion, compared to $1.3 billion last year. On a per share basis, non-GAAP earnings improved to $1.40 from $1.36 a year ago, reflecting a lower share count for the quarter.
On average, 23 analysts polled by Thomson Reuters expected earnings of $1.29 per share for the quarter. Analysts' estimates typically exclude special items.
Amgen's quarterly sales increased 3 percent to $3.94 billion from $3.8 million a year ago. Twenty-two Wall Street analysts expected sales of $3.87 billion.
Total product sales for the quarter increased 3 percent to $3.87 billion from the prior year. US sales, which forms the main business, increased 2 percent to $2.96 billion, and International sales rose 9 percent to $912 million, year-over-year.
Total combined sales of its lead products Neulasta and Neupogen, which are used to stimulate the production of neutrophils and fight infections, increased 6 percent to $1.33 billion from last year, on higher prices and unit demand in the US.
Total sales of rheumatoid arthritis drug Enbrel rose a modest one percent to $925 million from last year, while sales of Xgeva, used to prevent skeletal-related events, totaled $100 million in the third full quarter following launch.
Meanwhile, total sales of anemia drugs Aranesp decreased 4 percent to $600 million from the prior year as unit demand waned in the US, and Epogen sales decreased 27 percent to $476 million. Further, sales of Sensipar / Mimpara increased 18 percent to $206 million from the same quarter last year.
Amgen said its total operating expenses for the quarter increased to $3.4 billion from $2.3 billion last year, and includes a 11 percent climb in research and development overheads to $763 million. Expenses also reflect a rise in selling and general overheads.
Additionally, Amgen said its Board has authorized an increase to the company's stock repurchase program to a total amount of $10 billion. The company plans to use this authorization to accelerate its stock repurchase program.
For 2011, Amgen has forecast GAAP earnings of $3.89 to $4.05 per share. It now expects 2011 non-GAAP earnings of $5.15 to $5.30 per share and revenues of $15.4 billion to $15.6 billion.
Earlier, in July, Amgen had forecast 2011 non-GAAP earnings to be at the upper end of $5.00 to $5.20 per share, and revenues to be at the top end of $15.1 billion to $15.5 billion.
Among others in the industry, last week, Amgen's bigger rival Johnson & Johnson (JNJ) also reported a decline in quarterly profit, as domestic revenues fell amid escalating expenses. The company also raised the lower end of its full-year earnings guidance range, while maintaining the upper end.
AMGN closed Monday's regular session at $58.95, up $0.36 or 0.61%, on a volume of 4.4 million shares on the Nasdaq.
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