AMGEN BEATS ANALYSTS' FORECASTS, BUT STOCK DROPS.Byline: Ben Sullivan Daily News Staff Writer
Biotechnology drug maker Amgen Inc. soundly beat analysts' first quarter earnings estimates Tuesday, but then saw its share price pounded in trading after hours Adv. 1. after hours - not during regular hours; "he often worked after hours" .
Amgen was expected to earn 44 cents per share Cents per share
The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. by a consensus of analysts surveyed by First Call Corp. The company bested that figure by 4.5 percent, or 2 cents per share, on what the company said was strong growth in sales of the drug Epogen. Revenues from the drug increased 30 percent to $395 million for the quarter.
In anticipation of the report, which came out after U.S. markets closed, investors sent Amgen shares up by $8.0625, or 13.23 percent, to $69. Trading in the stock was heavy, with 9.3 million shares changing hands, or roughly twice the 30-day average volume for the stock.
But in a move that surprised some analysts, the stock dropped $3 in Nasdaq trading after the close of markets.
``Maybe it was some misguided concern about their pipeline,'' said analyst Douglas Christopher of Los Angeles-based Crowell, Weedon & Co. He noted that Amgen, in its earnings report, announced that it was discontinuing development of two drugs - a form of the anti-obesity compound leptin Leptin
A protein hormone that affects feeding behavior and hunger in humans. At present it is thought that obesity in humans may result in part from insensitivity to leptin. , as well as GDNF GDNF Glial-cell Line-Derived, Neurotrophic Factor
GDNF Gesinnungsgemeinschaft der Neue Front (German) for the treatment of Parkinson's disease Parkinson's disease or Parkinsonism, degenerative brain disorder first described by the English surgeon James Parkinson in 1817. When there is no known cause, the disease usually appears after age 40 and is referred to as Parkinson's disease. - but said the moves should have no material impact on the company.
In a conference call with analysts, Amgen executives reiterated that they expect the company to earn $1.80 to $1.85 per share for the year. Since the company announced in March that it will spend up to $100 million to develop a prostate cancer prostate cancer, cancer originating in the prostate gland. Prostate cancer is the leading malignancy in men in the United States and is second only to lung cancer as a cause of cancer death in men. drug it acquired, that means sales are growing faster than expected for drugs Amgen already has developed.
Sales of the anti-anemia drug Epogen have grown rapidly in the last year since a Clinton administration Noun 1. Clinton administration - the executive under President Clinton
executive - persons who administer the law decision to ease Medicare restrictions on the drug. Almost all of Epogen's revenue comes through Medicare, the federal health plan for the elderly.
Along with most publicly traded U.S. pharmaceutical and biotech firms, Amgen's shares were pounded Monday in a sell-off that hammered the company's stock down by $5.875, or 8.7 percent, to close at $60.9375. Christopher said that a cycling-out of technology and drug stock may have contributed to the after-hours drop in Amgen stock Tuesday.