Total revenues increased 14% to $5,723 million in the third quarter of 2015, beating the Zacks Consensus Estimate of $5,311 million.
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The company raised its 2015 per-share earnings estimate to $9.95 to $10.10 on revenue of $21.4 billion to $21.6 billion, compared with per-share profit of $9.55 to $9.80 on revenue of $21.1 billion to $21.4 billion. Currency fluctuations had a negative impact of two percentage points on the growth. That drug’s sales declined 5 percent to $284 million.
However, Amgen cited unfavorable foreign exchange rates as a reason for 2 percent lower earnings in regard to gross revenue and product sales growth. This was partially offset by price and favorable changes in inventory levels. Many patients have switched to the improved version, Neulasta. Enbrel, the anti-inflammatory blockbuster drug, saw a 30% YoY rise in sales, while Neulasta, the cancer top-seller, saw a 6% YoY increase. Its sales of osteoporosis drug Prolia jumped 25 percent to $320 million, while Xgeva sales surged 19 percent to $378 million.
Amgen reported continued progress on its drug pipeline, with several launches under way, including cholesterol drug Repatha, which the U.S. Food and Drug Administration approved in late August. Xgeva benefited from a few abnormally large purchases by a few end customers in the USA this quarter, adding to the volume growth. The biotech giant delivered significant earnings and sales beat. The company reported that the USA launch is off to a good start.
Reimbursement discussions in individual countries in the European Union are ongoing. The company recently gained FDA approval for Imlygic (metastatic melanoma) and filed for US and European Union approval of etelcalcetide (secondary hyperparathyroidism).
Analysts on average expected earnings of $2.38 on revenue of $5.32 billion, according to Thomson Financial Network.
Revenue rose 14 per cent to $US5.72 billion, also well above the $US5.34 billion analysts expected.
During the quarter, Amgen repurchased 4.6 million shares of common stock at a total cost of $0.7 billion.
As for 2016, the company now foresees revenue rolling in between $21.7 billion and $22.3 billion, which should produce a per-share profit between $10.35 and $10.75.
Net income jumped 50 percent to $1.86 billion, or $2.44 a share, from $1.24 billion, or $1.61, a year earlier.
Amgen’s third quarter results were once again strong with the company beating on all fronts.
Moving ahead, the biotechnology company lifted its outlook for 2015.
White blood-cell booster Neupogen drove $218 million in sales last quarter, down 5% from the same quarter a year earlier.
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The company also issued very conservative 2016 estimates for next year, but Amgen typically updates its prospectus throughout each fiscal year.
