AMGEN PROFITS UP 45 PERCENT CANCER, ANEMIA DRUGS LEAD WAY.

Byline: Gregory J. Wilcox Staff Writer

THOUSAND OAKS - First-quarter profits at biotechnology giant Amgen Inc. soared 45 percent on strong sales of its suite of blockbuster drugs used to treat cancer, anemia and arthritis, the company said Tuesday.

The Thousand Oaks-based company, which dominates the world's biotech sector, said first-quarter net income totaled $493.3 million, equal to 37 cents a share, on sales of $1.76 billion.

The results are markedly better than year-ago profits of $340.9 million, or 32 cents per share, on sales of $1.01 billion.

Much of the 75 percent revenue growth was attributed to the company's purchase of Immunex and its high-powered drug Enbrel, used to treat rheumatoid arthritis. Enbrel contributed $247 million to Amgen's top line during the 2003 first quarter, sales power not available in the year ago period.

Nevertheless, sales of Amgen's other high-profile anemia drugs - Epogen, Aranesp, Neulasta and Neupogen - jumped 50 percent, the company said.

``Our first quarter experienced top-line product growth both domestically and internationally,'' Kevin Sharer, Amgen's chairman and chief executive officer, said during a conference call after results were released Tuesday afternoon.

Solid growth is expected this year, prompting the company to raise its sales and earnings forecast.

Total revenue is now projected to range between $7.7 billion and $8.2 billion, up from the previous guidance of a range between $7.3 billion and $7.8 billion.

The company also expects adjusted earnings per share to range between $1.80 to $1.90 this year versus the previous estimate of $1.70 to $1.80.

Adjusted earnings exclude certain expenses, like those related to the acquisition of Immunex.

On this basis the company had net income of $558 million, or 42 cents a share, versus net income of $341 million, or 32 cents, in the year-ago period.

``It was a solid quarter. Clearly they are benefiting from continued strength in all their core franchises,'' said Bill Tanner, a biotechnology analyst with Leerink Swann & Co.

One concern on the horizon is if and by how much the government will alter the hospital and physician reimbursement for Amgen's drugs. That matter is now under review and Amgen has been discussing it with federal officials.

Sharer said he thinks a resolution might be reached sometime next year and that it will please patients, the government and Amgen.

``If you are an oncologist you can make a decent amount of money based on how much you buy the drug for and how much you are reimbursed. The government would like to tighten the spread and make it smaller. If that's the case there could be less of these drugs used,'' Tanner said.

And while the company thinks this won't be a big issue until late next year, ``it's something that people can't whistle past the graveyard on,'' Tanner said.

Amgen's stock closed Tuesday at $60.94, up 86 cents or 1.43 percent.