Amgen reduced its capital spending outlook to about $700 million, from its previous estimate of about $800 million. “Now it’s really all about the PCSK9 approval and launch”, he said of Repatha.
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Osteoporosis drug Prolia also topped expectations by about $30 million with sales of $340 million for the quarter.
Kyprolis, approved in the U.S., awaits European approval, while Repatha, an expensive biologic drug for lowering cholesterol in patients not helped enough by statin pills such as Lipitor, was approved in Europe this month and could win U.S. Approval in late August. The FDA often follows the recommendations of its advisory panels, but it isn’t required to do so.
The company also named to its board industry veteran Fred Hassan, who has a long history of selling large companies, including Pharmacia and Schering-Plough.
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.
Amgen has been working to cut costs.
The company reported its quarterly performance late Wednesday. Now Zarxio, made by Novartis AG, is to go on sale September 2 at a somewhat lower price. Analysts had estimated $5.31 billion.
Excluding special items, Amgen earned US$2.57 per share. Revenue increased 3.7 percent to $5.37 billion, the company said Thursday in a statement.
Unfavorable foreign exchange rates due to the strong dollar hurt revenue by 2.5 percentage points, the company said. On average, 18 analysts polled by Thomson Reuters expected earnings of $2.43 per share for the quarter.
Sales of the infection-fighting white blood cell boosters Neulasta and Neupogen, which are bracing for competition from new biosimilar versions, were in line with expectations at $1.41 billion.
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During the quarter, total product sales increased 6 percent compared to the same quarter last year, driven by its established Enbrel arthritis drug and bone-loss treatment Prolia, as well as new cancer drug Kyprolis. That should further reduce Neupogen sales, which fell 14 per cent to $256 million in the second quarter.
