Aug 3 (Reuters) – U.S. biotech Amgen Inc on Tuesday mentioned its second-quarter income rose 5%, however restoration from the COVID-19 pandemic, which has restricted affected person interactions with healthcare suppliers, is anticipated to hit gross sales for the remainder of 2021.
The pandemic “has suppressed the amount of latest sufferers beginning therapy,” the corporate mentioned in a press release.
Amgen additionally mentioned extra competitors, together with from cheaper generics and biosimilars, would proceed to strain its web promoting costs, particularly for its ldl cholesterol, psoriasis and infection-fighting medicine.
As well as, the corporate mentioned it’s contesting within the U.S. Tax Court docket notices from the Inner Income Service looking for to extend its taxable earnings in three prior years by an quantity that might end in further federal tax of round $3.6 billion, plus curiosity.
The dispute, which can take a number of years to resolve, entails Amgen’s accounting for income between the US and Puerto Rico, the placement of most of its manufacturing operations, Chief Monetary Officer Peter Griffith mentioned on a convention name with traders.
Amgen’s quarterly adjusted earnings, helped by share buybacks, rose 4% from a 12 months earlier to $4.38 per share, beating the $4.10 forecast by Wall Avenue analysts, as calculated by Refinitiv.
The outcomes “look typically simple,” however the commentary on the pandemic “will average enthusiasm,” Jefferies analyst Michael Yee mentioned in an emailed remark.
Amgen shares, which rose 1.8% to shut at $244.08, have been buying and selling decrease at $242 after hours.
Income of $6.5 billion was in step with analyst estimates as an 8% enhance in unit gross sales volumes was partially offset by a 5% drop in web promoting costs.
For the complete 12 months, Amgen mentioned it nonetheless expects adjusted earnings of $16.00 to $17.00 per share on income of $25.8 billion to $26.6 billion.
However the firm lowered its 2021 web earnings estimate to $8.84 to $9.90 per share from its prior view of $9.11 to $10.71, and mentioned share repurchases can be on the higher finish of its earlier estimate of $3 billion to $5 billion.
“This may increase eyebrows a bit given they usually increase steerage for the second half of the 12 months,” Yee mentioned.
Gross sales of newer migraine drug Aimovig fell 16% from a 12 months earlier to $82 million, in need of the $95 million projected by analysts. Gross sales of ldl cholesterol fighter Repatha rose 43% to $286 million, nevertheless it too missed Wall Avenue estimates of $299 million.
Amgen additionally introduced on Tuesday plans to construct a brand new drug substance manufacturing facility in Holly Springs, North Carolina.
Reporting By Deena Beasley;
Modifying by Invoice Berkrot and Dan Grebler