Its shares rose 69 cents in regular trading, then added $1.53 to $164.20 in after-hours trading.
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Next year, Amgen is expecting adjusted earnings of $10.35 to $10.75 per share and revenue of $21.7 billion to $22.3 billion. But inventory stocking could spell lower fourth-quarter sales. Excluding items, the company’s earnings surged to $2.72 per share from $2.30 per share.
Key Takeaways From Earnings CallMaking Good On The Financial Objectives Set a year ago?
Amgen is among the health-care companies that has been targeted by a shareholder activist, in its case Dan Loeb and his hedge fund Third Point Capital LLC. Analysts on average were looking for $10.76 per share and $22.17 billion. In the same quarter a year earlier, Amgen earned $2.30 per share on a top line of $5.03 billion.
Overall, Amgen reported a profit of $1.86 billion, or $2.44 a share, up from $1.24 billion, or $1.61 a share, a year earlier. Here’s a graph detailing Amgen’s recent quarterly revenue and growth rate: Check back later for our full analysis on Amgen’s third quarter earnings report! So far in the year, Amgen’s sales have gone up 9% against a 19% increase of adjusted EPS. The company also reported a 2% improvement in operating margin to 49%, which reflects “meaningful progress” towards its 2018 target.
Aranesp revenues increased 4% to $493 billion. The sales rise for both drugs was attributed to price increases and favorable changes in inventory, from the prior year period. Meanwhile, Neulasta onpro kit (on-body injector) is performing well and has already achieved 19% market share of the Neulasta business. Neulasta lost the United States exclusivity this month, with patent loss in the European Union set for 2017. Prolia delivered $320 million in revenue, while Xgeva generated $378 million.
Amgen began to feel the pinch of competition from the first USA biosimilar to its Neupogen infection fighter.
Amgen purchased shares worth $700 million during the quarter.
Neupogen revenues decreased 5% to $284 million.
Amgen contends it has renewed patent protection on Enbrel that will last through 2029. Its been expected the indication will double the patient population for the drug. Kyprolis sales grew 46% YoY and 15% sequentially to $137 million, in-line with analysts’ expectations. The company said, “Every month there are about a 1,000 new patients who require second-line treatment”.
The others approved since last December include Blincyto, for treating a rare form of leukemia, and Amgen’s first two drugs in its new cardiovascular franchise: Corlanor, the first new medication in a dozen years for heart failure, and Repatha, for people with sky-high cholesterol uncontrollable by standard medicines. They also said that payers are covering the drug in line with its label, for high-risk patients with bad cholesterol levels above 130.
Amgen also provided an update on the launch of its PCSK9 inhibitor, Repatha.
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Amgen raised its 2015 forecasts for revenue, to a range of $21.4 billion to $21.6 billion, from $21.1 billion to $21.4 billion, and for adjusted earnings per share, to a range of $9.95 to $10.10, from $9.55 to $9.80.
