Amgen Inc. (NASDAQ:AMGN), a biotechnology medicines company, reported
a 5% increase in first quarter earnings, reflecting broad strength
across the portfolio and a 8% growth in product sales. Adjusted earnings
and revenue exceeded Street's expectations, sending its shares up 0.42%
Earnings for the first quarter were $1.18 billion or $1.48 per share,
up from $1.13 billion or $1.25 per share last year. Adjusted earnings
rose to $1.29 billion or $1.61 per share from $1.26 billion or $1.34 per
Revenue increased 9% to $4.048 billion. Analysts had expected a profit of $1.45 per share on revenue of $3.93 billion.
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product sales increased 8% to $3.0 billion, while International product
sales rose 8% to $904 million. The impact of foreign exchange on
international product sales for the first quarter of 2012 was not
Research & Development (R&D) expenses increased 3% to $723
million, due to higher costs associated with supporting later-stage
clinical programs including AMG 145, AMG 785 and talimogene
laherparepvec. This increase was offset partially by reduced expenses in
Discovery Research and Translational Sciences.
Capital expenditures for the first quarter were $129 million, up from $100 million last year.
145 is a fully human monoclonal antibody that inhibits proprotein
convertase subtilisin/kexin type 9 (PCSK9), a protein that reduces the
liver's ability to remove LDL-C from the blood causing bad cholesterol
to increase. AMG 785 is being developed to treat postmenopausal
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Looking ahead into the fiscal 2012, the company continues to
anticipate revenue of $16.1 billion to $16.5 billion, and adjusted
earnings of $5.90 to $6.15 per share, while Street predicts profit of
$6.05 per share on revenue of $16.23 billion. The adjusted earnings
excludes certain expenses related to acquisitions and cost-savings
initiatives, non-cash interest expense associated with convertible notes
and certain other items.
With respect to other guidance, Amgen still expects adjusted tax rate
for 2012 to be in the range of 14% to 15%. Excluding the Puerto Rico
excise tax, Amgen still projects adjusted tax rate for 2012 of 19% to
20%. The company still expects 2012 capital expenditures to be about
AMGN closed Tuesday's regular trading up 0.50% at $68.63. The stock
has been trading between $47.66 and $70.00 for the past 52 weeks.