AMGEN EARNINGS ON MARK; NEW PRODUCT TEST BEATS GOAL.

Byline: Gregory J. Wilcox Staff Writer

THOUSAND OAKS - Biotech giant Amgen's fourth-quarter earnings just met Wall Street's expectations, and the trial of a new product has been completed a year ahead of schedule, company officials said Wednesday.

For the quarter, Amgen reported net income of $210.8 million or 19 cents a share on sales of $951.4 million. This compares with net income of $281.6 million, 26 cents a share, on sales of $926.9 million in the fourth quarter of 1999.

In 2000, one-time charges affected per-share earnings by 5 cents during the fourth quarter. Additionally, the company took a 1 cent charge relating to licensing of a new drug for treating non-Hodgkin's lymphoma.

With these factors taken into consideration, the company met Wall Steet's expectations, although the effect of the licensing agreement was not detailed in the latest briefing of analysts.

The consensus of 26 analysts polled by First Call/Thompson Financial put Amgen's per share earnings for the quarter at 25 cents.

Fourth-quarter sales of Neupogen, which stimulates the immune system, totaled $311 million, a 12 percent decline from the same quarter in 1999.

``Amgen believes that demand continued to grow at a mid-single digit rate. The difference between reported sales growth and demand was primarily due to Y2K and other inventory changes and the negative foreign exchange impact of a stronger dollar,'' company officials said in a joint written statement.

Customers stocked up on Neupogen in the fourth quarter of 1999 because they didn't know whether they could get it in the first quarter of 2000.

Fourth-quarter sales of the anti-anemia drug Epogen rose 9 percent to $533 million.

Sales figures did not surprise analysts.

``Neupogen was a little weaker, but (company executives) have guided estimates down,'' said Robert Leboyer at Leerink Swann & Co. ``Everything is pretty much on track.''

Company officials also said the first pivotal trial of Aranesp, a drug used to fight anemia in cancer patients, was successful and that regulatory approval will be sought this year.

``We completed the trial essentially a year before we thought we would, so it's likely to come on the market a year ahead of time,'' said company spokesman David Kaye. ``It's really good news.''

For the year, Amgen reported net income of $1.138 billion, $1.05 per share, on revenues of $3.629 billion. Product sales accounted for $3.2 billion in revenue.

This compares with net income of $1.096 billion, $1.02 a share, on revenues of $3.34 billion in 1999. Product sales that year accounted for $3.042 billion.

After a four-year court battle over Epogen, Amgen won its patent infringement lawsuit against Transkaryotic Therapies Inc. last week. Transkaryotic plans to appeal.

Amgen's stock closed Wednesday at $69.06, up $1.31.