Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Amgen profit, sales fall on lower drug prices; shares drop 3.4%

Stock MarketsApr 27, 2021 06:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: An Amgen sign is seen at the company's office in South San Francisco

By Deena Beasley

(Reuters) -U.S. biotech Amgen Inc (NASDAQ:AMGN) on Tuesday said its first-quarter sales and profit fell due to a 7% drop in its net drug prices and the COVID-19 pandemic, which continued to limit patient interactions with healthcare providers.

Amgen shares were down 3.4% at $246.50 after hours.

The company's quarterly adjusted earnings per share fell 12% from a year earlier to $3.70, short of the $4.04 forecast by Wall Street analysts, as calculated by Refinitiv.

Revenue for the quarter fell 4% to $5.9 billion - also below analyst estimates of $6.26 billion. Net profit fell 8% to $2.83 per share.

"They are typically weakest in the first quarter due to seasonality in patient volumes and then bounce in Q2 on a recovery in buying patterns and patient volumes," Jefferies (NYSE:JEF) analyst Michael Yee said in an email.

For the full year, Amgen said it still expects adjusted earnings of $16.00 to $17.00 per share on revenue of $25.8 billion to $26.6 billion, but lowered its net EPS forecast to a range of $9.11 to $10.71 from a previous $12.12 to $13.17. The company said it now expects a 2021 net tax rate of 14% to 15.5% - up from a previous estimate of 11% to 12.5%. Its adjusted tax rate is now forecast at 13.5% to 14.5%, compared with the previous 13% to 14%.

"We felt the impact of the pandemic in January and February, and we began to see a recovery in March, a trend that seems to be holding in April as well," Amgen Chief Executive Robert Bradway said on a conference call with investors.

Company officials said Amgen continues to expect 2021 net selling prices for its drugs to fall by a rate in the mid-single digits due to increased competition, including cheaper generics and biosimilars.

First-quarter sales of its rheumatoid arthritis drug Enbrel fell 20% to $924 billion, shy of analysts' estimate of $1.1 billion.

Sales of newer migraine drug Aimovig fell 7% from a year earlier to $66 million for the quarter, well short of the $95.7 million projected by analysts. But sales of cholesterol fighter Repatha rose 25% to $286 million, beating Wall Street estimates of $251 million.

The U.S. Food and Drug Administration in February granted priority review status to sotorasib, Amgen's experimental lung cancer drug. The company on Tuesday said it is studying different doses of the drug and expects to have data from combination studies in the second half of this year.

Amgen profit, sales fall on lower drug prices; shares drop 3.4%

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email