Updated from 5:21 p.m. EDTAmgen ( AMGN), the world's No. 2 biotech concern by market cap, saw its second-quarter earnings decline year over year, but that was mainly because of the acquisition of the drug developer Abgenix. As a result of the April transaction, Amgen's quarterly net income was $14 million, down from $1 billion last year. On a per-share basis, Amgen earned 1 cent a share, compared with 82 cents a year ago. The difference was mostly attributable to the company's writeoff of $1.1 billion in acquired in-process research-and-development expenses, Amgen said Thursday. Excluding certain items, but including 4 cents a share in stock option expenses, Amgen earned $1.01 a share. Total revenue in the second quarter came in at $3.6 billion, up 14% from a year ago. Analysts surveyed by Thomson Financial were looking for a profit of 94 cents a share and sales of just under $3.5 billion for the second quarter. Worldwide sales of Aranesp, a treatment for chemotherapy-induced anemia, rose 26% to $1.1 billion. U.S. Aranesp sales were up 33%, driven by overall market growth as well as market-share gains, Amgen said. Sales of Aranesp took a bite out of revenue from Amgen's other anemia drug, Epogen, which fell 5% to $613 million in the second quarter. Epogen's sales also took a hit from wholesaler inventory changes. Combined worldwide sales of Neulasta and Neupogen increased 12% to $1 billion. North American sales of the psoriasis and rheumatoid arthritis drug Enbrel climbed 13% to $724 million, an advance that was driven by increased demand and a 4.9% U.S. price increase in May. Still, sales growth was tempered by competition and slower-than-expected dermatology segment growth, the company said. Looking ahead, Amgen increased its full-year earnings guidance by 15 cents to between $3.75 and $3.85 a share, excluding stock option expenses. During a conference call, the company lifted its full-year revenue estimates to between $14 billion and $14.3 billion from its previous guidance of $13.9 billion to $14.4 billion.
Amgen also provided an update on its proposed colorectal cancer drug panitumumab, now brand-named Vectibix. The company has submitted its application to the Food and Drug Administration for marketing approval of Vectibix and says it expects a decision from the agency by Sept. 28. If the FDA approves the drug, Amgen will aim to get it on the market by the end of the year. Amgen says it will provide more information on pricing and its overall launch strategy for the drug during its next earnings conference call. "I am pleased with our excellent financial performance in both the United States and internationally," said Kevin Sharer, Amgen's chairman and CEO. "Execution of our important clinical programs continued at an aggressive pace, and we took meaningful actions to defend our intellectual property." Shares of Amgen jumped 5% to $67.15 in after-hours trading.