Amgen Slumps After 1Q Earnings Miss

By Earnings FOXBusiness

An Amgen sign is seen at the company's office in South San Francisco, California October 21, 2013. The biopharmaceutical company reports earnings on Tuesday. REUTERS/Robert Galbraith (UNITED STATES - Tags: BUSINESS HEALTH SCIENCE TECHNOLOGY LOGO) - ... RTX14J0R (Reuters)

Amgen (AMGN) said Tuesday its first-quarter profit dropped 25% amid lower-than-expected sales for the biopharmaceutical firm.

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The company reported net income of $1.07 billion, or $1.40 a share, compared to $1.43 billion, or $1.88 a share, in the year-ago period. On an adjusted basis, earnings fell to $1.87 from $1.96.

Revenue rose 7% to $4.52 billion but still missed Wall Street’s consensus estimate of $4.75 billion. Analysts were also looking for stronger adjusted earnings of $1.94 a share.

Amgen shares slumped 3.5% to $115.16 in after-hours trading. The stock is up 4.6% through Tuesday’s close.

The earnings report from Amgen follows a flurry of deals in the pharmaceutical sector. Valeant (VRX) unveiled a cash-and-stock buyout offer for Botox maker Allergan (AGN). Novartis (NVS) agreed to three transactions with GlaxoSmithKline (GSK), while announcing the sale of its animal health unit to Eli Lilly (LLY).

For Amgen, sales have gotten a boost from its $10 billion acquisition of Onyx Pharmaceuticals. Total product sales were up 5% in the first quarter, driven by osteoporosis treatment XGEVA and cancer drugs Kyprolis and Neulasta.

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Amgen said product sales declined 9% versus the fourth quarter due to inventory draw-downs.

Robert A. Bradway, chairman and CEO of Amgen, plans to submit global filings for hyperlipidemia treatment evolocumab this year.

“We continue to advance our robust late-stage pipeline,” Bradway said in a statement.

Amgen also provided guidance for the full year. The company expects to book adjusted earnings of $7.90 to $8.20 a share on revenue of $19.2 billion to $19.6 billion.

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