Amgen Profit Climbs; Aranesp Sales Decline
Amgen reported third-quarter earnings that rose from a year ago and beat forecasts.
Excluding one-time items, the biotechnology firm reported a profit of $1.18 billion, or $1.08 a share, on sales of $3.6 billion.
In the same period last year, the biotechnology company reported earnings of $1.04 a share on sales of $3.57 billion.
Analysts expected Amgen to report earnings of $1.03 a share on sales of $3.57 billion, according to a consensus estimate compiled by First Call.
Including one-time items such as stock option expenses, Amgen posted income of $201 million, or 18 cents per share.
Worldwide sales of Aranesp decreased 23 percent to $818 million in the third quarter as U.S. sales of the anemia drug that treats chemotherapy and kidney patients plunged to $460 million from $720 million a year ago.
"Sales of our ESA (anemia) products were adversely affected by regulatory and reimbursement changes," Chief Executive Kevin Sharer said in a statement. "We are making good progress in implementing a global restructuring plan to rationalize our cost structure and improve cash flow, while continuing to invest in the future."
The company said it now expects to incur about $775 million to $850 million in total restructuring charges, up from its prior estimate of $600 million to $700 million.
Amgen said it has so far taken $582 million of the restructuring charges and expects the remaining estimated charges will be incurred in the fourth quarter of 2007 and, to a lesser degree, in 2008.
Shares of Amgen rose about 2 percent in after-hours trade after finishing market hours up 0.75 percent at $58.13.