Amgen's second-quarter profit slipped 7. 6 percent as a series of restructuring and other charges further stunted a second quarter already...
THOUSAND OAKS, Calif. — Amgen’s second-quarter profit slipped 7.6 percent as a series of restructuring and other charges further stunted a second quarter already hit by a continued decline in anemia-drug sales.
But the results topped Wall Street forecasts after excluding the charges, and the stock reached its highest point in more than a year Monday, buoyed by positive study results on the company’s next possible blockbuster, the osteoporosis drug denosumab.
Shares hit $62.50 at one point during the trading session, marking more than a 12 percent jump and its highest level since May of 2007.
The stock rose $6.56, or 12.2 percent, to close at $60.48, and rose a further $1.22 in after-hours trading.
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Amgen raised its profit outlook in the wake of the second-quarter results.
“Our business showed good stability through the first half of the year, giving us confidence to increase our previously issued guidance on a full year basis,” Chairman and Chief Executive Kevin Sharer said in a statement. “We are very pleased with the denosumab Phase 3 results in postmenopausal osteoporosis from the [denosumab] study and are looking forward to presenting these data in detail at a scientific conference this fall.”
During the second quarter ended June 30, the company earned $941 million, or 87 cents per share, compared with $1.02 billion, or 90 cents per share, a year earlier. Revenue rose just under 1 percent to $3.76 billion from $3.73 billion. Excluding one-time charges, profit rose to $1.14 per share, Amgen said.
Analysts forecast profit of $1.02 per share on revenue of $3.58 billion, according to a survey by Thomson Financial.
For the full year, the company now expects profit between $4.25 and $4.45 per share, excluding charges, up from between $4 and $4.30 per share. Revenue is expected to range from $14.6 billion to $14.9 billion, up from prior guidance of $14.2 to $14.6 billion.
Wall Street expects 2008 profit of $4.19 per share on revenue of $14.42 billion.
Shares have been weighed down for well over a year because of declining sales of Aranesp and Epogen in the wake of safety concerns, stricter Food and Drug Administration warnings and federal reimbursement changes.
Aranesp sales continued their downward spiral, falling 13 percent to $825 million, though Epogen sales remained unchanged at about $622 million.
But combined sales of Neulasta and Neupogen, which prevent infections in chemotherapy patients, rose 15 percent to $1.20 billion, while sales of the rheumatoid arthritis drug Enbrel rose 2 percent to $841 million. Enbrel was developed by Seattle’s Immunex before it was sold to Amgen in 2002.
Wall Street had been cautious about any recovery in anemia-drug sales and braced for further declines throughout the quarter.
Amgen has a facility with about 800 workers near Elliott Bay in Seattle along with 200 workers at a manufacturing plant in Bothell.