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Amgen Beats Q3 Estimates With Strong Drug Sales Including Osteoporosis Treatment Prolia

The company raised its full-year adjusted earnings forecast to $15.80 to $16.15 per share, from a previous range of $15.10 to $15.75

Image source: Amgen earnings presentation, Oct. 28, 2020

By Deena Beasley

(Reuters) – Amgen Inc on Wednesday said its third-quarter adjusted profit rose 17% due to stronger sales of drugs including the osteoporosis treatment Prolia and recently-acquired psoriasis medication Otezla.

The higher-than-expected results were partially offset by lower drug prices and the effects of the COVID-19 pandemic.

The biotechnology company said that more patients had resumed interacting with their doctors in the third quarter than earlier in the health crisis, but prescribing volumes remained “modestly below” pre-pandemic levels.

The company raised its full-year adjusted earnings forecast to $15.80 to $16.15 per share, from a previous range of $15.10 to $15.75, and narrowed its revenue estimate. It now expects revenue of $25.1 billion to $25.5 billion versus it prior forecast of $25.0 billion to $25.6 billion.

Amgen also lowered its expected 2020 tax rate to 13% to 14% from 13.5% to 14.5%.

The company reported a third-quarter adjusted profit $4.37 per share, beating the average estimate of $3.81 per share, as compiled by Refinitiv.

Revenue for the quarter rose 12% to $6.4 billion, in line with analyst estimates of $6.38 billion.

Sales of Prolia rose 11% to $701 million, ahead of the average analyst estimate of $688 million.

Psoriasis drug Otezla, acquired from Celgene Corp in November, had sales of $538 million for the quarter, falling short of analyst expectations of $587 million.

Sales of Amgen’s older arthritis drug Enbrel fell 3% year-over-year to $1.3 billion as the drug continued to lose market share in the quarter. That still topped analysts’ expectations of $1.26 billion.

Amgen’s posted a net income of $2.02 billion, or $3.43 per share, compared with a profit of $1.97 billion, or $3.27 a share, a year ago.

Reporting By Deena Beasley; Editing by Bill Berkrot.

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Source: Reuters