Amgen's anemia drug sales miss 4Q estimates

MondayMorning, Feb 2, 2009

Amgen Inc. (Thousand Oaks CA), the world's largest biotechnology company, reported that fourth-quarter sales of its core products to treat anemia were lower than analysts expected. Net income climbed 15% to $961 million, or 91 cents a share, from $835 million, or 76 cents a share, a year earlier. Earnings, excluding certain costs, matched the $1.06 average estimate of analysts. Revenue was unchanged at $3.75 billion. Lower sales of Aranesp, the company's best-selling anemia drug, were offset by increased sales of the company's rheumatoid arthritis therapy, Enbrel, and its white-blood-cell booster, Neulasta. Amgen executives and analysts have said future sales growth will be closely tied to success of the company's bone drug, denosumab, which awaits marketing approval by U.S. and European regulators.

"Amgen's success or failure will be driven by denosumab," Eric Schmidt, an analyst at Cowen & Co. in New York, said. More than 200 million people worldwide suffer from postmenopausal osteoporosis, and 50% of U.S. women will experience a bone fracture from the disease during their lives, according to the company. Denosumab may generate $1.4 billion in sales in 2013, according to Schmidt's estimate. Amgen shares closed the week up $1.66, or 3%, at $54.85.