Amgen Reports 6% Rise in Q2 Revenue, in Line With Estimates; Beats Profit Forecasts

Reuters  |

Image source: Amgen Q2 2020 Earnings Presentation, July 28 2020

By Deena Beasley

(Reuters) - Amgen Inc on Tuesday reported second-quarter revenue rose 6% as higher sales of newer drugs, including recently-added psoriasis treatment Otezla, offset declining sales of older medicines.

The biotechnology company also posted much higher-than-expected adjusted profit, but acquisition-related costs pushed net earnings lower.

Amgen said sales of drugs such as osteoporosis treatment Prolia fell during the quarter as people, especially older women who use the physician-administered drug, put off going to the doctor due to the coronavirus pandemic. Sales rose for newer products including Otezla and cholesterol drug Repatha.

Total revenue for the quarter of $6.2 billion was in line with the average Wall Street estimate as compiled by Refinitiv.

Otezla, acquired from Celgene in November, had sales of $561 million for the quarter, beating analyst expectations of $540 million.

The psoriasis drug is being studied as a potential immune system-modulating treatment in patients hospitalized with COVID-19.

Amgen’s net income for the quarter fell 17% from a year earlier to $1.8 billion, driven primarily by costs associated with the Otezla deal and accounting for losses at Chinese partner BeiGene Ltd.

Adjusted earnings rose 4% to $2.52 billion, or $4.25 per share. Wall Street analysts on average, expected $3.84 per share.

For the full year, Amgen narrowed its outlook for adjusted earnings per share to between $10.73 and $11.43 from its previous range of $10.65 to $11.45. The company said it still expects full-year revenue of $25 billion to $25.6 billion.

Amgen also expects key clinical data in the second half of this year from trials of experimental drugs, including tezepelumab in patients with severe asthma and heart failure treatment omecamtiv mecarbil.

Reporting By Deena Beasley; Editing by Bill Berkrot.

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Source: Reuters

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