AMGN Amgen Inc

By Tess Stynes and Jonathan D. Rockoff 

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, along with cost-cutting, as some of the company's older biotech drugs face competition from lower-priced treatments.

"Our business continues to perform well," Chief Executive Robert A. Bradway said during a conference call.

Mr. Bradway expressed optimism for the company's ability to keep increasing sales, singling out six new drugs in the late stages of development and the launch of six others last year.

Among the new drugs that Amgen is counting on is Repatha, one of a new wave of cholesterol-lowering treatments that the Food and Drug Administration approved last August.

In the latest quarter, Repatha had sales of $27 million, compared with $16 million in the first quarter. Repatha's rollout has been slowed by tight restrictions on use imposed by health insurers, Amgen commercial chief Anthony Hooper said.

"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.

Amgen also is facing competition from lower-cost copies of its drugs, known as biosimilars, including Novartis AG's Zarxio, the Swiss drugmaker's version of Amgen's 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 recommended approval of Novartis's biosimilar 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 and Jonathan D. Rockoff at Jonathan.Rockoff@wsj.com

(END) Dow Jones Newswires

July 27, 2016 18:40 ET (22:40 GMT)

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