Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



New Drugs Help Drive Amgen's Operating Income Up 18% in Q1

It was steady as she goes for one of the most decorated biopharmaceuticals in the U.S., Amgen (NASDAQ: AMGN  ) , which reported solid top- and bottom-line growth in the first quarter following its acquisition of Onyx Pharmaceuticals, which closed in October.

For the quarter, revenue rose 5% over the year-ago period, to $4.52 billion, although revenue declined 9% from the sequential fourth quarter primarily due to inventory drawdowns. The biggest boost on a percentage basis came from osteoporosis therapies Xgeva and Prolia, which delivered combined growth of 30%, to $475 million. Sales of its white blood cell stimulator used in patients undergoing cancer treatment, Neulasta/Neupogen, recorded a 3% sales increase, to $1.38 billion, primarily on the heels of price increases. It still represents its largest drug by revenue. Kyrpolis, the relapsed and refractory multiple myeloma treatment acquired when Amgen purchased Onyx, also saw sales increase to $68 million.

Offsetting these stronger sales was a 5% drop in Enbrel revenue, to $988 million, as well as a 2% dip in Aranesp sales, to $460 million.

In spite of the stronger revenue, Amgen's adjusted profit declined 5%, to $1.87, which it attributed to favorable tax benefits experienced in the year-ago quarter. Operating income, however, expanded 18%, to $1.86 billion, as cash flow improved 9%, to $1 billion. Amgen cited benefits from the end of its Enbrel profit share, as well as improved sales of newer therapies as the reason its operating income improved year over year.

Looking ahead, Amgen reaffirmed its previous guidance, which calls for $19.2 billion to $19.6 billion in revenue, and $7.90-$8.20 in EPS, with an adjusted tax rate in the 15% to 16% range.

Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 23, 2014, at 1:33 AM, suthanalley wrote:

    Due to pre-market trading, the stock price of Netflix up 7.3%, after the announcement of the fiscal year 2014(1QFY14; ended March 31, 2014) by the company.This is the upward movement of Netflix in the stock price. In order to view more follow

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2925049, ~/Articles/ArticleHandler.aspx, 8/29/2015 2:20:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Sean Williams

A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and in investment planning topics. You'll usually find him writing about Obamacare, marijuana, developing drugs, diagnostics, and medical devices, Social Security, taxes, or any number of other macroeconomic issues.

Today's Market

updated 5 hours ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
AMGN $155.89 Up +0.17 +0.11%
Amgen, Inc. CAPS Rating: ****