Amgen posts increase for Q4 2007
THOUSAND OAKS, Calif. Amgen has released its fourth quarter and full year earnings. For the fourth quarter, the net income of the company increased 3 percent to $1,088,000 compared to $1,060,000 in the fourth quarter of 2006.
For the full year, the company had an adjusted net income of $4,804,000 versus $4,620,000 in 2006, a 4 percent increase. Although revenue decreased in the fourth quarter by 2 percent, for the full year it increased by 4 percent to $14,771,000.
The company was affected negatively by the new labeling requirements from the Food and Drug Administration for anemia drugs or erythropoiesis-stimulating agents. The FDA changed the labeling information after finding that patients who were taking the drugs due to chemotherapy were actually dieing sooner than patients who had not received the drug.
Amgen’s two big anemia drugs, Aranesp and Epogen decreased in sales in the fourth quarter, which was when the announcement was made by the FDA, combined by 28 percent. Aranesp decreased 25 percent to $827 million and Epogen decreased by 3 percent to $638 million.
“2007 was Amgen’s most challenging year,” said Kevin Sharer, chairman and chief executive officer. “Despite the unexpected reduction in revenues of our erythropoietin products, we delivered earnings per share very close to the low end of our original guidance. I am also encouraged by our recent denosumab trial results and the potential of our pipeline. 2008 presents challenges and opportunities and while we are optimistic, we are ready for whatever might come our way,” concluded Sharer.
Denosumab is Amgen’s new osteoporosis drug, which recently proved in a study to be better at improving bone density than Fosamax.
Even with this information, the company sill expects revenue to decrease in 2008 and be in the range of $14.2 to $14.6 billion.