Amgen saw a 73% decline in net earnings in the second quarter of 2021, the company announced Aug. 3.
Thousand Oaks-based Amgen, one of the world’s largest biotechnology companies, reported earnings per share of 81 cents for the quarter ended June 30, down from $3.05 per share in the same quarter last year.
According to Amgen, the drop in net income was a result of the write-off of $1.5 billion in in-process research and development acquired as part of Amgen’s purchase of Five Prime Therapeutics. The $1.9 billion sale was announced March 4 and Amgen paid a 79% premium over Five Prime’s stock value at the time.
Total revenue did increase 5% in the second quarter on a year-over-year basis, as Amgen saw sales worth $6.5 billion in revenue in the quarter compared to $6.2 billion in the same quarter last year. That was primarily driven by an 8% rise in volume, partially offset by a 5% decrease in net selling prices.
Amgen previously noted that net prices would decrease due to increased competition, including from cheaper generics and biosimilars.
Product sales globally increased 3%.
Enbrel, Amgen’s drug to treat rheumatoid arthritis, was the only drug to generate above $1 billion in sales for the second quarter. Enbrel made $1.1 billion in the quarter, down 8% from the same quarter of 2020.
Shares for Amgen were down less than 1% after hours, with the stock hovering above $241 a share.