Amgen second-quarter revenue rises 6%, shares fall 2%

(Reuters) – Amgen Inc on Tuesday reported second-quarter revenue rose 6% as higher sales of newer drugs, including recently-added psoriasis treatment Otezla, offset declining sales of older medicines.

The results were largely in line with Wall Street estimates and the company’s shares fell nearly 2% in extended trading.

Amgen said sales of drugs such as osteoporosis treatment Prolia fell during the quarter as people, especially older women who use the physician-administered drug, put off going to the doctor due to the coronavirus pandemic. Sales rose for newer products including Otezla and cholesterol drug Repatha.

“The pandemic interrupted many physician-patient interactions, which led to delays in diagnosis and treatment with varying degrees of impact across our portfolio,” the company said in a statement.

Amgen said sales of Prolia, and other drugs, picked back up in latter weeks of the second quarter, in part because the company worked closely with healthcare providers to identify alternative sites for patients to receive their injections.

For the full year, Amgen narrowed its outlook for adjusted earnings per share to between $10.73 and $11.43 from its previous range of $10.65 to $11.45. The company said it still expects full-year revenue of $25 billion to $25.6 billion.

Total revenue for the quarter of $6.2 billion was in line with the average Wall Street estimate as compiled by Refinitiv.

Otezla, acquired from Celgene in November, had sales of $561 million for the quarter, beating analyst expectations of $540 million.

The psoriasis drug is being studied as a potential immune system-modulating treatment in patients hospitalized with COVID-19.

Amgen’s net income for the quarter fell 17% from a year earlier to $1.8 billion, driven primarily by costs associated with the Otezla deal and accounting for losses at Chinese partner BeiGene Ltd.

Adjusted earnings rose 4% to $2.52 billion, or $4.25 per share, beating the average estimate of $3.84 per share. The results were helped by share buybacks during the quarter.

Amgen also expects key clinical data in the second half of this year from trials of experimental drugs, including tezepelumab in patients with severe asthma and heart failure treatment omecamtiv mecarbil.

Amgen shares fell 1.8% after hours to $250.64 from their NASDAQ close at $255.27.

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