Amgen 1st-quarter profit rises on cost cutting
|
|
|
NEW YORK (Reuters) - Amgen Inc reported higher first-quarter profit on Thursday, topping estimates, as cost cutting helped offset declining sales of its anemia drugs hit by safety concerns and reimbursement restrictions.The world's largest biotechnology company by sales said net profit rose to $1.14 billion, or $1.04 per share, from $1.11 billion, or 94 cents per share, a year ago.Excluding items, Amgen earned $1.12 per share, beating analysts' average expectations by 8 cents, according to Reuters Estimates.Total revenue fell 2 percent to $3.61 billion, in line with Wall Street estimates.The erosion of the anemia franchise continued unabated as worldwide sales of the red blood cell booster Aranesp -- long seen as Amgen's most important product -- fell 25 percent to $761 million in the quarter. That was below Wall Street's diminished estimate of $771 million and well below the previous quarter's $827 million, marking the fifth successive quarterly decline.The older anemia treatment Epogen, used primarily in kidney dialysis patients, saw sales fall 11 percent to $554 million, missing analyst estimates of $604 million.Aggressive cost cutting helped stem the tide of plunging anemia drug sales. Research and development spending was down 18 percent for the quarter, while capital expenditures were slashed to $170 million from $325 million a year ago.Enbrel, a treatment for rheumatoid arthritis and the skin condition psoriasis, provided a major bright spot as sales jumped 30 percent to $951 million, handily topping expectations of $868 million.Combined global sales of Neulasta and Neupogen, used to boost white blood cells, rose 7 percent to $1.08 billion.Amgen shares are down about 9 percent this year, continuing the sharp decline seen in 2007 amid a steady drumbeat of negative news involving its top-selling anemia drugs.Amgen reaffirmed its 2008 forecast for adjusted earnings of $4.00 to $4.30 per share.(Reporting by Bill Berkrot and Ransdell Pierson; editing by Jeffrey Benkoe)
(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
Wall Street stocks gain on optimism for US economy
New York - US stocks rose Wednesday after three separate reports offered signs that the US recovery is gaining steam. Consumer spending and new home sales rose more than expected in October, while weekly jobless claims dropped to their lowest rate si...
Washington Post shutters all US bureaus outside capital - Summary
Washington - The Washington Post will close its remaining domestic bureaus outside the US capital, the paper said Wednesday, in an attempt to cut costs in the prevailing economic climate. The daily said it would close bureaus in New York, Chicago and...
Washington Post shutters its remaining bureaus outside US capital
Washington - The Washington Post will close its remaining bureaus outside the US capital, the paper said Wednesday, in an attempt to cut costs in the prevailing economic climate. The daily said it would close bureaus in New York, Chicago and Los Ange...
FDIC: 'Problem' banks at 16-year high in US
Washington - The number of US banks in danger of collapse has risen to the highest level in 16 years, a government regulator reported Tuesday in a sign that the country's worst financial crisis in decades is still lingering. The Federal Deposit Insur...
American shoppers lace up racing shoes for Black Friday
Los Angeles - Up to 134 million Americans are expected to splash out with their cash when the holiday shopping season kicks off on traditional Black Friday. The National Retail Federation Tuesday said it anticipated that the easing recession will sen...
US stocks edge lower on revised growth figures
New York - US stocks fell slightly on Tuesday as government figures showed that last quarter's economic rebound was smaller than initially thought. The Commerce Department in an updated estimate said the economy grew at an annual rate of 2.8 per cent...
US economic rebound smaller than thought; Fed optimistic - Summary
Washington - The US economy's rebound from a deep recession was smaller than initially thought, according to new government figures Tuesday, while the Federal Reserve said it expects the country's recovery to pick up...
|
|
|
|
|
|
|
|
