{"id":26795,"date":"2023-04-27T22:00:23","date_gmt":"2023-04-27T22:00:23","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/amgen-first-quarter-profit-falls\/"},"modified":"2023-04-27T22:03:58","modified_gmt":"2023-04-27T22:03:58","slug":"amgen-1st-quarter-profit","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/amgen-1st-quarter-profit\/","title":{"rendered":"Amgen 1st quarter profit falls as costs rise, sales up 2%"},"content":{"rendered":"

By Deena Beasley<\/p>\n

(Reuters) -Amgen Inc on Thursday reported lower first-quarter profit as expenses rose and a 2% increase in sales of its own drugs was offset by lower revenue from its deal to manufacture COVID-19 antibody treatments for Eli Lilly and Co.<\/p>\n

Amgen reported revenue of $6.11 billion for the quarter, down 2% from a year earlier, but close to analysts’ estimates of $6.17 billion, according to Refinitiv data.<\/p>\n

Product sales by volume grew 14% from a year earlier, but net selling prices fell 5%, while foreign exchange rates and other factors also limited sales revenue gains, Amgen said. <\/p>\n

Adjusted earnings per share decreased to $3.98 from $4.25 a year ago, but came in ahead of analysts’ forecast of $3.85.<\/p>\n

Amgen is seeing prescription trends return to prepandemic levels and “demand for medicines is resilient despite current macroeconomic challenges,” Amgen Chief Executive Robert Bradway said on a conference call with investors.<\/p>\n

Amgen shares, which rose by less than 1% in regular trading, were down 2.3% at $234.83 after hours.<\/p>\n

The company said first-quarter sales of cholesterol drug Repatha rose 18% from a year earlier to a record $388 million, while sales of migraine drug Aimovig fell 32%, driven by lower prices.<\/p>\n

Sales of psoriasis drug Otezla fell 13% and arthritis drug Enbrel saw sales drop 33%, both due in part to lower net selling prices, Amgen said.<\/p>\n

“Misses in core assets like Enbrel fail to provide confidence needed when commercial launches are faltering,” BMO Capital Markets analyst Evan Seigerman said in a research note. <\/p>\n

Operating expenses for the quarter increased 6%, research and development costs rose 12% and Amgen said its tax rate rose 5.6 percentage points, primarily due to a Puerto Rico tax law change. <\/p>\n

The California-based biotechnology company slightly increased its forecast for full-year 2023 revenue to range of $26.2 billion to $27.3 billion, from the previous view of $26 billion to $27.2 billion, excluding the impact of its pending acquisition of Horizon Therapeutics Plc.<\/p>\n

Analysts estimate $26.7 billion in revenue for the full year. <\/p>\n

Amgen said it still expects the Horizon deal to close by the end of June.<\/p>\n

“The Horizon deal is still a focus to get back to growth and offset headwinds on older products,” Jefferies analyst Michael Yee said in a note.<\/p>\n

In December, Amgen agreed to buy Horizon for $27.8 billion, fortifying its rare diseases portfolio with the access to blockbuster thyroid eye disease treatment Tepezza.<\/p>\n

(Reporting By Deena BeasleyEditing by Bill Berkrot)<\/p>\n

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By Deena Beasley (Reuters) -Amgen Inc on Thursday reported lower first-quarter profit as expenses rose and a 2% increase in sales of its own drugs was offset by lower revenue from its deal to manufacture COVID-19 antibody treatments for Eli Lilly and Co. Amgen reported revenue of $6.11 billion for the quarter, down 2% from […]<\/p>\n","protected":false},"author":8,"featured_media":26796,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-26795","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3Q0XY-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/26795","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=26795"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/26795\/revisions"}],"predecessor-version":[{"id":26996,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/26795\/revisions\/26996"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/26796"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=26795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=26795"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=26795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}