Why Amgen Is Up Despite Falling Product Sales
Amgen shares rose early Wednesday after it released better than expected second-quarter financial results late on Tuesday.
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When Amgen Inc. (NASDAQ: AMGN | AMGN Price Prediction) released its second-quarter financial results after the markets closed on Tuesday, the firm said that it had $3.97 in earnings per share (EPS) and $5.9 billion in revenue. That compared with consensus estimates of $3.58 in EPS and $5.66 billion in revenue, as well as the $3.83 per share on $6.06 billion posted in the same period from last year.
During the most recent quarter, revenues decreased 3% year over year, reflecting increasing competition due to patent expirations. Product sales fell 2% in the time as well.
In terms of its product sales, Amgen reported as follows:
- Prolia, $698 million
- Evenity, $28 million
- Repatha, $152 million
- Aimovig, $83 million
- Parsabiv, $168 million
- Kyprolis, $267 million
- Xgeva, $499 million
- Vectibix, $196 million
- Nplate, $201 million
- Blincyto, $78 million
- Enbrel, $1.36 billion
- Neulasta, $824 million
- Neupogen, $75 million
- Epogen, $223 million
- Aranesp, $436 million
- Sensipar/Mimpara, $122 million
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Looking ahead to the full year, the company expects to see EPS in the range of $13.75 to $14.30 and revenue between $22.4 billion and $22.9 billion. Consensus estimates are calling for $13.97 in EPS and $22.59 billion in revenue for the year.
Apart from this, Amgen said that its experimental cancer drug AMG510 demonstrated activity in patients with colorectal and appendiceal cancer. Previously, the firm presented data in June suggesting AMG510 appeared to be effective against lung cancer. Amgen expects to begin a trial later this year that could serve as the basis for a U.S. regulatory application seeking approval.
Robert A. Bradway, board chair and chief executive, commented:
With our newer products generating strong volume gains globally and many first-in-class medicines advancing through our pipeline, we are well positioned to serve patients and deliver long-term growth for our shareholders.
Shares of Amgen closed Tuesday at $176.45 but traded early Wednesday at $181.88. The 52-week range is $166.30 to $210.19, and the consensus price target is $204.43.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
