🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Amgen second-quarter revenue rises 6%, shares fall 2%

Published 07/28/2020, 04:14 PM
Updated 07/28/2020, 07:00 PM
© Reuters. An Amgen sign is seen at the company's office in South San Francisco
AMGN
-
CELG
-
BGNE
-

By Deena Beasley

(Reuters) - Amgen Inc (NASDAQ:AMGN) said on Tuesday second-quarter revenue rose 6% as higher sales of newer drugs, including recently added psoriasis treatment Otezla, offset declining sales of older medicines which were due in some cases to people staying home to avoid exposure to the new coronavirus.

The results were largely in line with Wall Street estimates, and the company's shares fell nearly 2% in extended trading.

Amgen said sales of drugs such as osteoporosis treatment Prolia fell as people, especially older women who use the physician-administered drug, put off going to the doctor due to the pandemic.

"Stringent stay-at-home orders resulted not just in social distancing, but in medical distancing," Amgen commercial operations chief Murdo Gordon said on a conference call.

But he added that sales of Prolia and other drugs picked up in the latter half of the quarter, in part because the company worked closely with healthcare providers to identify alternative sites for patients to receive their injections.

For the full year, Amgen narrowed its outlook for adjusted earnings per share to between $10.73 and $11.43 from its previous range of $10.65 to $11.45. The company said it still expects full-year revenue of $25 billion to $25.6 billion.

The current pandemic "creates significant uncertainty," Chief Financial Officer Peter Griffith said.

Total revenue for the quarter of $6.2 billion was in line with the average Wall Street estimate as compiled by Refinitiv.

Otezla, acquired from Celgene Corp (NASDAQ:CELG) in November, had sales of $561 million for the quarter, beating analyst expectations of $540 million.

Adjusted earnings, helped by lower expenses, rose 4% to $2.52 billion, or $4.25 per share, beating the average estimate of $3.84 per share.

Amgen's "performance was solid during the quarter," Edward Jones analyst Ashtyn Evans said in an emailed statement, adding that investor focus is now shifting to the company's drug development pipeline.

Amgen expects key clinical data in the second half of this year from trials of experimental drugs, including tezepelumab in patients with severe asthma, omecamtiv mecarbil in heart failure patients and sotorasib for lung cancer.

© Reuters. An Amgen sign is seen at the company's office in South San Francisco

Amgen shares fell 1.7% after hours to $251 from their Nasdaq close at $255.27.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.