Amgen Posts Slim Revenue Rise on Enbrel Sales

| About: Amgen Inc. (AMGN)

World-leading biotech company Amgen Inc. reported a 3.4% rise in Q2 revenue on sales of rheumatoid arthritis drug Enbrel, which compensated for a decline in sales of anemia drug Aranesp. Q2 net came in at $1.02 AMGN 27 07 2007 EarningsChartbillion ($0.90/share) from $14 million ($0.01) a year ago, when the company's acquisition of Abgenix erased $1.1 billion in profit. Excluding items, net profit was $1.27 billion ($1.12/share) versus $1.24 billion ($1.05) last year. Analysts were expecting $1.06. Revenue edged up to $3.73 billion from last year's $3.6 billion, in line with Street forecasts. (See earnings call transcript.) Amgen shares have fallen about 20% this year on safety concerns about anemia drugs Aranesp and Epogen, which represent approximately half the company's revenue. Aranesp's Q2 sales were $949 million, down 10% from last year. Enbrel sales, by contrast, were up 14% to $823 million. "This has been a difficult period and this quarter’s low growth is a reflection of that reality," said CEO Kevin Sharer. Amgen lowered its full-year EPS forecast to $4.28 from $4.30-4.50. Its shares fell 1.75% to close at $56.16.

Sources: Bloomberg, New York Times, Dow Jones
Commentary: Cancer Stocks: Lagging AgainDavid Neubert's Top Ten HoldingsAmgen’s Story Gets Better And Better
Stocks/ETFs to watch: AMGN. Competitors: BAX, JNJ, NVS. ETFs: BBH, PKW, PRFH

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