Amgen's Raised Guidance May Give Biotech a Booster Shot [TSCM]
By Adam Feuerstein
Staff Reporter
04/25/2002 06:41 PM EDT
Updated from 5:40 p.m. EDT
Finally, there's some good news to talk about in biotech land.
Amgen (AMGN:Nasdaq - news - commentary - research - analysis) reported higher first-quarter profits Thursday, bolstered by generally strong drug sales and a reduced tax rate.
Better yet, the No. 1 biotech firm -- in the midst of a $16 billion takeover of Immunex (IMNX:Nasdaq - news - commentary - research - analysis) -- boosted guidance for total product sales growth for the rest of the year.
The upbeat chatter coming out of Amgen comes on a day when the battered American Stock Exchange biotech index came dangerously close to the post-Sept. 11 doldrums. The sector mustered a small recovery at the close, so Amgen's strong first quarter report could provide some much-needed fuel for a continued rally Friday.
The No. 1 biotech firm said first-quarter net profits rose 12% to $340.9 million, or 32 cents per share, compared to $304.9 million, or 28 cents per share in the year-ago period. Amgen's earnings, which matched Wall Street estimates, were helped by reduced tax rates in the quarter, as well as lower research and development spending, the company said.
Total product sales increased 14% to $909 million in the quarter, compared with $798 million in first quarter 2001. Total revenue reached just over $1 billion.
First-quarter sales of Epogen, the company's anemia-fighting drug, reached $512 million -- a bit lower than Wall Street estimates of about $540 million. The company says sales were impacted negatively by inventory drawdowns.
<snip>
thestreet.com
[free] |
