Amgen says it expects pandemic to limit sales through 2021 By Reuters

© Reuters. FILE PHOTO: An Amgen signal is seen on the firm’s workplace in South San Francisco, California October 21, 2013. REUTERS/Robert Galbraith

By Deena Beasley

(Reuters) – U.S. biotech Amgen Inc (NASDAQ:) on Tuesday stated its second-quarter income rose 5%, however restoration from the COVID-19 pandemic, which has restricted affected person interactions with healthcare suppliers, is predicted hit gross sales for the remainder of 2021.

The pandemic “has suppressed the quantity of recent sufferers beginning therapy, which we count on to proceed to influence our enterprise through the second half of the yr,” the corporate stated in a press release.

Amgen’s web revenue for the quarter fell 73% to 81 cents a share, together with a $1.5 billion acquisition-related write off.

Adjusted earnings, helped by share buybacks, rose 4% from a yr earlier to $4.38 per share, beating the $4.10 forecast by Wall Road analysts, as calculated by Refinitiv.

The outcomes “look usually easy,” however the commentary on the pandemic “will average enthusiasm,” Jefferies (NYSE:) analyst Michael Yee stated in an emailed remark.

Amgen shares, which rose 1.8% to shut at $244.08, have been buying and selling barely decrease at $243.77 after hours.

Income of $6.5 billion was according to analyst estimates of $6.46 billion, as an 8% enhance in unit gross sales volumes was partially offset by a 5% drop in web promoting costs.

Amgen stated beforehand that 2021 web promoting costs for its medicine would fall by the mid-single digits because of elevated competitors, together with from cheaper generics and biosimilars.

For the complete yr, Amgen stated it nonetheless expects adjusted earnings of $16.00 to $17.00 per share on income of $25.8 billion to $26.6 billion.

However the firm lowered its 2021 web earnings estimate to $8.84 to $9.90 per share from its prior view of $9.11 to $10.71, and stated share repurchases will likely be on the higher finish of its earlier estimate of $3 to $5 billion.

“This may increase eyebrows a bit given they sometimes increase steerage for the second half of the yr,” Yee stated.

Second-quarter gross sales of Amgen’s rheumatoid arthritis drug Enbrel fell 8% to $1.1 billion, according to analyst estimates.

Gross sales of newer migraine drug Aimovig fell 16% from a yr earlier to $82 million, wanting the $95 million projected by analysts. Gross sales of ldl cholesterol fighter Repatha rose 43% to $286 million, nevertheless it too missed Wall Road estimates of $299 million.

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