Amgen Raises Full-Year Outlook

The company also says quarterly adjusted net income rose 58% from the same period last year.
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(AMGN) - Get Report

said Tuesday that strong sales of several drugs have prompted it to raise its earnings and total sales guidance for the full year.

The biotechnology company, based in Thousand Oaks, Calif., raised its full-year earnings-per-share estimate to a range of $1.85 to $1.95 from the previous estimate of $1.80 to $1.85.

The company made its announcement after stock markets had closed. In regular trading Tuesday, Amgen closed at $68.93, down 15 cents.

Amgen also lifted its guidance for total product sales to a range of $7.5 billion to $8 billion from a previous estimate of $7.1 billion to $7.6 billion. And the company said total year-end revenue should be in the range of $8 billion to $8.5 billion -- a $300 million increase from an earlier projection.

"We continue to deliver strong financial performance, and for the first time in Amgen's history

we have recorded quarterly revenue of $2 billion," said Kevin Sharer, Amgen's chairman and chief executive, in a prepared statement.

For the three months ended June 30, the company said total revenue leaped 63% to $2.04 billion from $1.25 billion in the same period last year.

The gain reflected rising sales of Amgen's anemia drugs -- Epogen and Aranesp -- as well as for Neulasta, a drug designed to reduce risks of chemotherapy-related infections. Another big boost to revenue was Enbrel, which Amgen obtained in its acquisition last year of Immunex.

Second-quarter Epogen sales rose 7% to $611 million; second-quarter Aranesp sales soared more than sixfold to $348 million. The company said prescription trends encouraged it to raise its year-end revenue guidance for both drugs to a range of $3.7 billion to $3.9 billion -- up $300 million. Neulasta's quarterly sales nearly tripled to $303.5 million.

For the three months ended June 30, Amgen reported that adjusted earnings per share rose 29% to 49 cents from 38 cents in the second quarter of 2002. Adjusted net income was $653 million -- up 58% from the $412 million for the same period last year. The adjusted figures exclude certain expenses related to the Immunex acquisition, $74 million for the recovery of fees and costs related to an arbitration with Johnson & Johnson and a charitable contribution of $50 million made to the Amgen Foundation.