Printer Friendly

AMGEN PROFITS ENJOY NEW ZIP ANEMIA DRUG ADDS VIGOR TO EARNINGS.

Byline: JULIA M. SCOTT Staff Writer

THOUSAND OAKS -- Robust sales of an anemia drug offset acquistion costs for biotech giant Amgen Inc., giving the company's second-quarter earnings a better-than-expec- ted boost.

Thousand Oaks-based Am- gen reported income of $14 million for the second quarter, or 1 cent per share.

Adjusted for costs associated with its acquisition of Abgenix, Amgen earned $1.24 billion, or $1.05 a share. The analyst consensus was 94 cents per share.

Amgen stocks dipped slightly before the report was released, dropping 64 cents or 1 percent, to close at $63.92. It picked up in after-hours trading, gaining $2.38.

``We've had excellent financial performance,'' said chairman and CEO Kevin Sharer during a conference call with analysts Thursday. Sharer added that the company is excited about numerous products in the pipeline.

A more efficient production line and lower royalty expenses added to income.

Sales of Amgen's drugs swelled 14 percent to $3.6 billion in the second quarter, up from $3.17 billion during the same quarter last year.

Aranesp, a protein that fights anemia by boosting the body's production of red blood cells, led the list of top sellers. Receipts for the drug leaped 33 percent at home and 14 percent internationally to take in $1.055 million.

Worldwide, sales of Sensipar more than doubled, to 119 percent, making $79 million. A higher price for Sensipar in the U.S. helped fuel higher earnings.

But not all of Amgen's products were winners.

Sales of the company's early anemia drug, Epogen, slid 5 percent.

That decrease was due partly to the popularity of Amgen's other anemia drug, Aranesp, and to inventory changes made by wholesalers, company officers said.

The quarterly report included a list of products being researched and developed. Amgen has 42 molecules in progress, ``the most robust'' pipeline to date, said Roger Perlmutter, a research and development executive.

The company spent hundreds of millions on a share buy-back program and on research.

Amgen shelled out $876 million for 13 million shares during the second quarter, part of a $5 billion plan to buy back more than 60 million shares.

Research expenses for clinical trials combined with new hires totaled $729 million, a 29 percent increase.

Amgen lost $9 million dollars through foreign currency exchange, Richard Nanula, executive vice president and CFO.

julia.scott(at)dailynews.com

(818) 713-3736
COPYRIGHT 2006 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Business
Publication:Daily News (Los Angeles, CA)
Geographic Code:1USA
Date:Jul 21, 2006
Words:395
Previous Article:HOME PRICE AT RECORD HIGH MEDIAN HITS $625,000 IN VALLEY DURING JUNE.
Next Article:`PIRATES,' `LADY' IN DUEL FOR BOX-OFFICE CROWDS.
Topics:


Related Articles
AMGEN PROFITS SOAR NEWER DRUGS FUEL SURGE.
AMGEN EARNINGS SURPASS $1 BILLION.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters