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Amgen Boosts Outlook Despite Pressure on Some Drugs

Amgen Boosts Outlook Despite Pricing Pressure for Some Drugs

Amgen Inc. boosted its financial outlook for the year, after the drugmaker posted better-than-expected results in the third quarter despite an erosion in some treatment prices.

  • The company said it expects adjusted earnings per share for the full year of $16.50 to $17.10, up from a previous forecast of $16 to $17. Adjusted earnings for the third quarter were $4.67 a share, above the $4.27 Wall Street analysts were expecting.

Key Insights

  • Cholesterol treatment Repatha saw sales jump 33% from a year earlier despite a lower net selling price, as volume growth surged, including a 64% jump in the U.S.
  • Sales of Amgen’s psoriasis drug Otezla increased 13% from a year ago despite lower prices as well. Seen as a key growth driver for Amgen, the treatment faces looming competition from Bristol Myers Squibb Co., which could bring a rival therapy to market next year.
  • But Enbrel, Amgen’s top-selling drug, saw sales slip 3% from the same period last year. Faced with more competition, Amgen said it expects a downward trend in the price the drug commands to continue.
  • Lumakras, a new lung-cancer treatment that was cleared by U.S. regulators in May, brought in $36 million in sales in the quarter, in line with the $35.9 million expected by analysts.

Market Reaction

Amgen shares fell 1.7% in late trading in New York on Tuesday. Through the close, the stock had declined 6.8% this year. 

Get More

  • The Thousand Oaks, California-based biotech’s revenue reached $6.7 billion, a 4% increase that was in-line with analyst forecasts. See more details.
  • Read the statement.

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