Amgen (AMGN) topped third-quarter expectations late Tuesday with sales from cholesterol-busting drug Repatha leading the way, though the biotech giant's biggest drug slipped 5%.
XIn after-hours trading on the stock market today, Amgen stock dipped a fraction after closing up 0.5%, at 189.08. Amgen stock has lost nearly 9% this month amid a broader sell-off for biotech companies. Still, shares remain up that much year to date.
For the third quarter, Amgen reported adjusted earnings of $3.69 per share, rising 13% to top the estimates of analysts polled by Zacks Investment Research for $3.42. Total sales of $5.9 billion advanced 2% and beat views for $5.82 billion.
The biotech giant credited its better-than-expected adjusted earnings growth to "higher total revenues, a lower tax rate and lower weighted-average shares outstanding." Chief Executive Robert Bradway noted new products drove sales growth in the quarter.
"We are in the early stages of launching several new products that offer innovative solutions for patients suffering from serious diseases," he said in a prepared statement. "Our newer products continue to deliver strong growth in unit volumes."
Repatha Sales Pop, But Lag
To that point, sales from Repatha spiked 35% year over year to $120 million. But that missed more bullish analyst views for $163 million to $164 million, Mizuho analyst Salim Syed said in a report to clients.
Repatha works to lower "bad" LDL cholesterol in the blood. It gained approval in 2015 and rivals Regeneron Pharmaceuticals' (REGN) and Sanofi's (SNY) Praluent.
Sales from osteoporosis treatment Prolia jumped 15% to $532 million. Cancer treatments Kyprolis, Xgeva and Blincyto all tacked on 12% growth in the quarter, generating $232 million, $433 million and $58 million, respectively.
Amgen's older drugs, though, saw sales decline on price cuts and lower demand. Enbrel, the biotech's most important drug, brought in $1.29 billion, sliding 5%. It treats several forms of arthritis and plaque psoriasis.
Enbrel is facing competition from biosimilars, nearly identical copies of branded biologic drugs. Novartis' (NVS) Sandoz unit has a biosimilar called Erelzi already available in Europe. A patent battle is currently taking place in the U.S.
Sales of Neupogen, a bone-marrow stimulating drug that also faces biosimilar challenges, fell 38% to $85 million. Novartis' Sandoz business and Dow Jones component Pfizer (PFE) both have biosimilar versions of Neupogen.
Migraine Prevention Drug Sales
Other quarterly highlights included migraine prevention drug Aimovig. Amgen and its partner, Novartis, were first to market with the drug, known as an anti-CGRP. Since then, Teva Pharmaceutical (TEVA) and Eli Lilly (LLY) have gained approvals of their own rival drugs.
During the period, Aimovig brought in $22 million in sales, after gaining approval in May and launching in the prior quarter.
Mizuho's Syed noted Aimovig sales beat expectations for $12 million to $16 million. But, he added in a report, "recall, most of that drug is still free" via a patient access program.
For the year, Amgen predicted adjusted earnings of $14-$14.25 per share and $23.2 billion to $23.5 billion. Both metrics topped the analyst views for adjusted income of $14.02 a share and $23.26 billion in sales.
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The post Biotech Giant Amgen Tops Views, Though Blockbuster Sales Dip appeared first on Investor's Business Daily.
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