Amgen reported better- than-expected first quarter profit Wednesday, but sales of two of its top drugs missed Wall Street estimates and it said 2010 earnings would be at the low end of its forecast due to healthcare reform costs.
The world's largest biotechnology company also said it anticipated new U.S. healthcare reform laws would cost it $200 million to $250 million this year. Amgenis the latest drugmaker to alter its 2010 forecast because of the healthcare reform.
Amgen shares were off nearly 1 percent in extended trading after initially falling more than 3 percent.
"The impact is less than many of us had feared,'' Cowen and Co analyst Eric Schmidt said of healthcare reform law costs. "The topline was a little bit weak. Maybe that's healthcare reform, maybe that's some other things.''
Amgen posted a net profit of $1.17 billion, or $1.18 per share, compared with a profit of $1.02 billion, or 98 cents per share, a year ago, when it endured a particularly bad quarter.
Excluding items, Amgen earned $1.30 per share, topping analysts' average expectations by 7 cents, according to Thomson Reuters.
"From a revenue and EPS standpoint everything looked okay and the healthcare reform guidance impact was pretty much in line with expectations,'' said Michael Yee, an analyst for RBC Capital Markets.