Amgen Reports Stronger-Than-Expected Q3 Earnings; Revenue Gains 12%

The revenue increase stemmed from "higher volume growth, partially offset by lower net selling prices and the effects of the pandemic,” Amgen said.
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Amgen  (AMGN) - Get Report shares were little changed in after-hours trading Wednesday, after the biotechnology titan reported stronger-than-expected  third-quarter results.

Revenue totaled $6.423 billion for the quarter, up 12% from $5.737 billion a year earlier. The FactSet analyst consensus called for $6.38 billion in the latest quarter.

Net income totaled $2.021 billion, or $3.43 per share, up from $1.968 billion, or $3.27 per share a year earlier. The analyst consensus was $2.90 a share for the latest quarter.

Adjusted profit registered $4.37 a share, easily besting analysts’ forecast of $3.80 a share.

The revenue increase was “driven by higher volume growth, partially offset by lower net selling prices and the effects of the Covid-19 pandemic,” the company said.

“Product sales increased 12% globally, driven by 18% volume growth across a number of our newer products, including Otezla (apremilast), MVASI (bevacizumab-awwb), Kanjinti (trastuzumab-anns), and Repatha (evolocumab), partially offset by declines in select products from the impact of Covid-19, and biosimilar and generic competition,” the company said in a statement.

CEO Robert Bradway said, "Amgen continues to deliver strong, volume-driven growth in a challenging environment, while also advancing new medicines in our pipeline," according to the statement.

Amgen shares recently traded at $216.38, unchanged from Wednesday’s close. The stock slid 3.17% during Wednesday’s regular session which saw broad-based selling on pandemic worries.

Last month, Amgen and Eli Lilly  (LLY) - Get Report agreed for Amgen to manufacture Lilly’s potential coronavirus antibody treatment.

Lilly is working on several neutralizing antibodies for the prevention and treatment of Covid-19, either in combination with other drugs or as a so-called monotherapy, adding that its collaboration with Amgen would "significantly increase the supply capacity" of any potential treatment breakthrough.