DOW JONES NEWSWIRES
Amgen Inc.'s (AMGN) fourth-quarter net income rose 15% as the
company overcame headwinds from the economy, the stronger dollar
and its weakened anemia franchise to eke out a small revenue
gain.
The pharmaceutical company also offered 2009 earnings guidance
roughly in line with analyst expectations, though its sales view
falls short of views.
Amgen reported net income of $961 million, or 91 cents a share,
compared with $835 million, or 76 cents a share, a year earlier.
Excluding acquisition-related and stock-compensation costs,
earnings rose to $1.06 a share from $1.
Revenue rose 0.2% to $3.75 billion.
Analysts polled by Thomson Reuters were looking for per-share
earnings of $1.07, excluding items, on revenue of $3.79
billion.
U.S. product sales rose 1%, while international sales climbed
3.7%, or about 8% excluding currency fluctuations.
Worldwide sales of anemia drug Aranesp fell 15% to miss the
projection from market researcher MDRx Financial, despite a boost
from a change in accounting for sales return reserves. Epogen sales
rose 1%, topping analysts' expectations.
The drugs' sales have been hurt since a Food and Drug
Administration panel last year called for new limits on cancer
patients' use of anemia drugs made by Amgen and Johnson &
Johnson (JNJ) because of concerns the drugs speed tumor growth and
shorten survival times.
Sales of the rheumatoid arthritis drug Enbrel, which Amgen sells
in North America and Wyeth Inc. (WYE) distributes elsewhere, jumped
7%. Wyeth said Monday that sales outside the U.S. and Canada rose
27%.
Combined sales of Neulasta and Neupogen, which are used to
prevent infections in patients receiving chemotherapy, were up
6%.
For 2009, Amgen expects adjusted earnings of $4.55 to $4.75 a
share on revenue of $14.8 billion to $15.2 billion. Analysts
expected $4.67 and $15.4 billion, respectively. Last week, rival
J&J's fourth-quarter results topped Wall Street expectations,
but the company issued disappointing 2009 guidance as a result of
the economy, the stronger dollar and generic competition.
Working to allay Wall Street concerns, Amgen told analysts in
November that it was weathering the financial crisis and might see
chances to buy up weakened biotech companies in the current
environment.
While acknowledging difficulties with Aranesp, the company also
indicated that its pipeline is promising. The lead product in that
pipeline is denosumab, which Amgen sought marketing approval for
last month. Getting that injectable bone drug - which could bring
in $1 billion to as much $10 billion in its peak sales year,
according to analysts - on the market is important to Amgen's
growth after the hits to its anemia drugs. Another drug in Amgen's
pipeline, motesanib, suffered a setback in November, when a trial
was suspended due to higher death rates in late-stage
non-small-cell lung-cancer patients.
In after-hours trading, Amgen shares fell 1.4% to $54.65, giving
back most of their gain during the regular session.
-By Jay Miller, Dow Jones Newswires; 201-938-2331;
jay.miller@dowjones.com
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