Amgen Leans on Newer Drugs as Pandemic Hampers Demand
By Micah Maidenberg
Amgen Inc. said the Covid-19 pandemic weighed on demand for a
number of its therapies as patients weren't able to visit doctors
but newer products helped it deliver both sales and volume
Overall, Amgen reported $6.21 billion in revenue for the second
quarter, up 6% compared with last year and slightly ahead of nearly
$6.2 billion that analysts expected for the period, according to
Volumes rose 13% year over year, helped by drugs such as Otezla,
a treatment for plaque psoriasis that Amgen acquired in November.
The drug generated $561 million in sales for the quarter, the
But sales and volumes for other Amgen products were hampered by
the coronavirus, which kept many people in the U.S. and other
markets at home starting this spring and out of doctors'
Lower interactions between patients and doctors as the
coronavirus spread has emerged as a challenge for companies focused
on health. Several big health-care companies, including insurer
Humana Inc. and Walgreens Boots Alliance Inc., have partnered on an
advertising campaign aimed at encouraging people to return to
"The pandemic interrupted many physician-patient interactions,
which led to delays in diagnosis and treatment with varying degrees
of impact across our portfolio," Amgen said Tuesday.
Sales of Enbrel, a medicine used to treat rheumatoid arthritis
and other conditions, fell 9% in the quarter to $1.25 billion amid
competition and due to the pandemic, Amgen said. Enbrel is the
company's biggest drug by sales.
Amgen reported second-quarter net income of $1.8 billion, or
$3.05 a share, down from $2.18 billion, or $3.57 a share, the year
Operating expenses were up 22% in the quarter, as Amgen absorbed
Otezla, which it purchased last November for $13.4 billion from
Celgene Corp. as part of Celgene's merger Bristol-Myers Squibb Co.
Amgen said it recorded higher amortization expenses related to the
Earnings following adjustments rose to $4.25 a share for the
quarter and were ahead of the $3.82 a share consensus estimate.
Amgen also said Tuesday it is developing therapeutic antibodies
that may be complementary with other antibodies directed against
Write to Micah Maidenberg at firstname.lastname@example.org
(END) Dow Jones Newswires
July 28, 2020 16:16 ET (20:16 GMT)
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