Amgen posts higher Q2 profit and sales, lifts 2017 earnings outlook

Amgen reported Tuesday that net profit rose to $2.2 billion during the second quarter, up from $1.9 billion in the year-prior period. The company said total quarterly revenues increased 2 percent versus the second quarter of 2016 to $5.8 billion, boosted by sales of Prolia, Repatha and Kyprolis. Analysts expected about $5.7 billion in revenue for the quarter. 

CEO Robert Bradway stated "our continued solid performance this quarter is yet another indication that we are on track to deliver on our long-term growth objectives." He added that "our newer products are registering strong volume-driven growth globally and we expect their contribution to continue to increase over time, offsetting declines in mature products." 

Second-quarter revenue from Prolia jumped 15 percent year-over-year to $505 million, while Kyprolis sales grew by 23 percent to $211 million. The company said sales of the cholesterol therapy Repatha totalled $83 million, versus $27 million in the year-ago period, "driven by higher unit demand."

Earlier this year, Amgen disclosed data from the FOURIER trial showing that Repatha significantly reduced the risk of cardiovascular events, although the effect of the PCSK9 inhibitor was not as pronounced as anticipated. Meanwhile, a US appeals court in February permitted Sanofi and Regeneron Pharmaceuticals to continue marketing their PCSK9 inhibitor Praluent in the country, overturning an earlier injunction that had barred them from doing so amid a legal dispute with Amgen over two Repatha patents (for related analysis, see Spotlight On: ‘Repatha v. Praluent’ legal tussle will necessarily strike a blow to patents or patients).

In regards to Amgen's outlook for 2017, the company now expects per-share earnings in the range of $12.15 to $12.65, versus prior guidance of $12 per share to $12.60 per share. The drugmaker also revised its revenue guidance to between $22.5 billion and $23 billion, from an earlier forecast of $22.3 billion to $23.1 billion. Analysts had expected adjusted 2017 earnings per share of $12.49 on sales of $22.7 billion for the year.