Amgen product sales slip but income stays steady
Net income at biotech giant Amgen stayed flat for the third quarter, despite a slight downtick in revenues to $5.8 billion, the company reported Oct. 25.
Product sales saw a slight decline, including Neupogen, Epogen and its blockbuster rheumatoid arthritis drug Enbrel, which fell 6 percent, but net income stayed steady at a little more than $2 billion, or $2.76 per share.
“We are seeing strong, volume-driven growth in our recently launched products, as we also effectively manage the life cycle of our mature products,” Chairman and CEO Robert Bradway said in a news release. “Disciplined expense management and ongoing process improvements continue to provide the financial flexibility needed to invest in our best opportunities for long-term growth.”
The Thousand Oaks-based company also discontinued the development of a cardiovascular product called AMG 899, resulting in some non-cash charges that impacted earnings per share.
Guidance for the year narrowed to $10.96 to $11.20 per share and total revenues in the range of $22.7 billion to $23 billion. Hurricane recovery efforts in Puerto Rico did not impact product supplies, but Amgen estimated that it would cost around 15 to 18 cents per share for 2017.
The company had nearly $41.4 billion in cash and cash equivalents as of Sept. 30, with $8.2 billion in current liabilities. On Oct. 25, shares fell 1.7 percent to $177.50.
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