Amgen tops estimate; announces jobs cuts

Amgen offices in Fremont, Calif.
Amgen offices in Fremont, Calif.

Amgen posted higher-than-expected second-quarter profit in a rebound from a disappointing first quarter, helped by strong sales of its rheumatoid arthritis drug Enbrel, and it significantly raised its full-year earnings forecast.

The world's largest biotechnology company also said it would cut 12 to 15 percent of its workforce and close two plants in a series of restructuring moves aimed at reallocating resources as it prepares for the eventual launch of new medicines it hopes will drive future growth.

Shares rose more than 3 percent in after-hours trading.

Amgen said net profit rose to $1.55 billion, or $2.01 per share, from a profit of $1.26 billion, or $1.65 per share, a year ago.

Excluding items, Amgen earned $2.37 per share, while revenue rose 11 percent to $5.2 billion. Wall Street had expected earnings of $2.07 per share on revenue of $4.90 billion.

The biotechnology firm develops medicines that help patients fighting cancer, kidney disease, rheumatoid arthritis, bone disease and other serious illnesses.

In the last few months, Amgen has announced research progress in treatments for leukemia and chronic kidney disease, as well as a collaboration with the National Cancer Institute to improve treatment of lung cancer.

The California-based company has offices all over the world. In June, Amgen appointed David W. Meline of 3M as its executive vice president and chief financial officer.

—By Reuters with