THOUSAND OAKS (dpa-AFX) - Amgen Inc. (AMGN) Tuesday reported a 21 percent increase in profit for the first quarter, reflecting a hefty research tax credit, even as revenues grew driven by its key arthritis drug Enbrel and as well as osteoporosis drugs. However, Amgen shares slipped six percent in extended trade as revenues came in short of analysts' estimates, while earnings trumped expectations.
Amgen, one of the world's largest biotechnology company, reported a first-quarter profit of $1.43 billion or $1.88 per share, up from $1.18 billion or $1.48 per share last year.
Adjusted earnings, which excludes special items, rose to $1.96 per share from $1.61 per share last year. Twenty-three analysts polled by Thomson Reuters, on average, expected earnings of $1.84 per share for the quarter. Analysts' estimates typically exclude special items.
Amgen's result were positively impacted by federal and state tax benefits associated with the resolution of the company's federal audit for tax years 2007-2009 as well as a 2012 federal R&D credit. For the first quarter, Amgen recorded tax benefit of $91 million compared to tax provision of $182 million last year.
Revenues for the first quarter grew 5 percent to $4.24 billion from $4.05 billion last year. Twenty-one analysts on consensus had a revenue estimate of $4.37 billion for the quarter.
Product sales increased 6 percent driven mainly by arthritis drug Enbrel, bone loss therapy Xgeva and Prolia, used to treat osteoporosis in menopausal women.
Commenting on results, CEO Robert Bradway said, 'We are on track to deliver our full-year growth objectives. In addition, our key pipeline projects are progressing well and we are looking forward to clinical results from ongoing trials.'
Sales of Enbrel, Amgen's blockbuster drug indicated in the treatment of psoriasis, psoriatic and rheumatoid arthritis, rose 11 percent to $1.04 billion in the quarter.
Sales of Xgeva and Prolia increased 51 percent to $365 million from a year ago. Xgeva treats osteoporosis and bone loss problems in patients with cancer. Prolia is approved for treatment of postmenopausal osteoporosis for women at high risk for fracture.
Sales of Sensipar, indicated in the treatment of secondary end-stage renal disease, improved 21 percent to $264 million from a year ago.
Meanwhile, sales of anemia drugs Aranesp and Epogen continued to decline. Aranesp fell 10 percent to $468 million, while Epogen declined 2 percent to $435 million, respectively, in the quarter.
Looking forward to the full year 2013, Amgen now expect adjusted earnings above the midpoint of its already provided guidance of $7.05 to $7.35 per share. The company maintained its revenue guidance of $17.8 billion to $18.2 billion for the year. Analysts currently estimate earnings of $7.21 per share on revenues of $18.07 billion for the year.
AMGN closed Tuesday' trade at $112.76, down $0.66 or 0.58%, on the Nasdaq. The stock further slipped $6.78 or 6.01% in after hours.
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