Amgen Boosts Forecast; Shares Advance

Amgen reported $634 million in sales of Epogen, while analysts had expected $610 million. Amgen said the 7% increase year-over-year increase was due primarily to an increase in the product's sales price, beneficial changes in wholesale inventory levels and revised estimates of dialysis demand.

Turning to other products, Amgen sold $893 million of Enbrel, beating the expectation for $855 million, and $1.19 billion of Neupogen and Neulasta, in line with estimates.

Looking ahead, Amgen now expects slightly lower research and development expenses for the year, and it's now forecasting an adjusted profit in the range of $4.45 to $4.55, on revenue of $14.9 billion to $15.2 billion.

Amgen previously projected a profit of $4.25 to $4.45 a share, with revenue of $14.6 billion to $14.9 billion. The new guidance surpasses the Thomson Reuters consensus targets of $4.38 a share and revenue of $14.82 billion.

"We view these results as a relief," said Citi analyst Yaron Werber.

Amgen is holding a business review meeting on Nov. 7. Investor focus remains on Amgen's late-stage bone-drug denosumab, it's most promising pipeline product. Positive data were announced earlier this year in women with postmenopausal osteoporosis, and additional findings should be available in the coming months.

"It was a very good quarter from a [profit statement] perspective," said JP Morgan analyst Geoffrey Meacham. "But the stock performance hinges more on [denosumab] data in 2009, as well as their investor meeting in November."

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