Amgen 4Q profit leaps 30 percent on higher sales

Published on NewsOK Modified: January 28, 2014 at 6:26 pm •  Published: January 28, 2014
Advertisement
;

Amgen Inc.'s fourth-quarter profit jumped 30 percent mainly due to a tax benefit from prior-year audits, an acquisition and higher sales for nearly all its drugs — much of it from price hikes.

The world's biggest maker of biologic drugs said Tuesday that net income was $1.02 billion, or $1.33 per share, up from $788 million or $1.01 per share, a year earlier.

Excluding one-time items, the maker of osteoporosis drug Prolia said earnings amounted to $1.39 billion, or $1.82 per share. Analysts were expecting $1.69 per share.

Revenue rose 13 percent to $5.01 billion. Analysts expected $4.81 billion, according to FactSet.

"A large part of the beat was the low tax rate," noted Edward Jones analyst Judson Clark, who has a "Hold" recommendation on Amgen's stock after its big run-up early last year.

In after-hours trading following the release of the results, Amgen shares fell 70 cents to $120, after rising $1.84, or 2.2 percent, to $120.70 in regular trading.

Sales were led by Neulasta and Neupogen for boosting infection-fighting white blood cells, up 8 percent to a combined $1.41 billion. Sales of immune disorder drug Enbrel rose 3 percent to $1.12 billion.

Six other established drugs saw sales increases of 10 percent or more. Those included Prolia, touted in ads by actress Blythe Danner.

Only Aranesp had lower sales, down 4 percent to $180 million due to lower demand.

CEO Bob Bradway told analysts on a conference call that sales were "strong in the U.S. and once again, we were one of the few companies growing revenues in Europe."

Continue reading this story on the...