AMGN Amgen Inc

By Tess Stynes 

Amgen Inc. said its second-quarter earnings rose 13% on better-than-expected revenue growth, which was again driven by sales of key drugs such as Enbrel.

The Thousand Oaks, Calif., biotechnology company's per-share earnings, excluding certain items, also beat expectations.

Amgen again raised its 2016 outlook and now expects per-share earnings of $11.10 to $11.40 on revenue of $22.5 billion to $22.8 billion. The company previously had projected per-share profit of $10.85 to $11.20 and revenue of $22.2 billion to $22.6 billion.

Like many other drugmakers, Amgen has been counting on introductions of new medicines as some of the company's older biotech drugs face competition from lower-priced treatments.

Chief Executive Robert A. Bradway said in prepared remarks that Amgen is on track to meet or exceed its long-term targets.

"We are in the early stages of a new product launch cycle and have several additional pipeline opportunities rapidly nearing regulatory milestones," Mr. Bradway stated.

These include the company's recently submitted filing with the Food and Drug Administration seeking approval for osteoporosis drug romosozumab. An FDA panel also recently voted in favor of recommending approval for Amgen's biosimilar version of AbbVie's blockbuster rheumatoid arthritis drug Humira.

Investors will be listening on the conference call for updates on Amgen's drug pipeline and its strategy for biosimilars -- less expensive copycat versions of biotech drugs.

Amgen also reported progress for anti-cholesterol drug Repatha, which received FDA approval in August. In the latest quarter, Repatha contributed sales of $27 million, compared with $16 million in the first quarter. Analysts had expected Repatha sales of $26 million, according to FactSet. The rollout of Repatha has been slow amid resistance from some health insurers, pharmacy-benefit managers and other payers.

Amgen also is facing competition from biosimilar versions of some of its own drugs, including Novartis AG's Zarxio, the Swiss drugmaker's version of Neupogen. In the latest quarter, Neupogen sales slumped 23% to $196 million.

Meanwhile, sales of rheumatoid arthritis and psoriasis drug Enbrel rose 10% to $1.48 billion in the quarter, driven by higher prices. An FDA panel also has urged approval of Novartis's biosimilar drug etanercept -- a copycat version of Enbrel.

Over all, Amgen reported a profit of $1.87 billion, or $2.47 a share, up from $1.65 billion, or $2.15 a share, a year earlier. Excluding acquisition-related expenses and other items, adjusted per-share earnings rose to $2.84 from $2.57. Revenue increased 5.9% to $5.69 billion.

Analysts polled by Thomson Reuters expected per-share profit of $2.74 and revenue of $5.58 billion.

Demand for Amgen's bone drugs continued to grow, with Xgeva sales rising 15% to $381 million and Prolia sales climbing 30% to $441 million.

Sales of multiple myeloma drug Kyprolis jumped 45% to $172 million, also driven by higher demand. Amgen gained Kyprolis with its $10.4 billion acquisition of Onyx Pharmaceuticals Inc. in 2013.

Neulasta sales fell 1% to $1.15 billion, amid lower demand that was partly offset by higher pricing in the U.S.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

July 27, 2016 16:45 ET (20:45 GMT)

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