By Meg Tirrell
By Meg Tirrell
NEW YORK - Amgen Inc., the biotechnology company that completed its $10.4 billion acquisition of Onyx Pharmaceuticals Inc. this month, boosted its 2013 forecast after third-quarter earnings rose 24 percent on higher drug sales.
Net income climbed to $1.37 billion, or $1.79 a share, from $1.11 billion, or $1.41, a year earlier, the Thousand Oaks, Calif.-based company said today in a statement. Earnings excluding one-time items were $1.94 a share, beating the $1.78 average of 16 analystsâ€™ estimates compiled by Bloomberg.
Revenue in the third quarter increased 9.9 percent to $4.75 billion, topping analystsâ€™ average estimate of $4.58 billion. Sales were boosted by a $155 million order from the U.S. government of Neupogen, a drug that helps patients on chemotherapy fight infection.
â€śIf you back that out, it was an in-line quarter,â€ť Michael Yee, an analyst with RBC Capital Markets, said today in a phone interview. â€śOn the positives, all the revenue products look generally fine and that keeps the momentum alive in the sector.â€ť
Amgen shares rose 2.3 percent to $116.21 at the close of trading today. They are up 35 percent this year, trailing a 52 percent increase for the Nasdaq Biotechnology Index.
Revenue in 2013 will be $18.3 billion to $18.5 billion for the year, while profit will be $7.35 to $7.45 a share, Amgen said. Analysts had estimated revenue of $18.3 billion and earnings of $7.36 a share, on average.
The company, the worldâ€™s largest biotechnology firm by revenue, gained the cancer drug Kyprolis in its acquisition of Onyx, for $9.7 billion after factoring in Onyxâ€™s cash. The deal, the industryâ€™s largest this year, gives Amgen expected sales growth as analysts estimate Kyprolis may draw more than $2 billion in revenue by 2018.
Kyprolis sales were $65 million in the quarter, missing the $69 million estimate of Chris Raymond, an analyst with Robert W. Baird. The drug was approved in July 2012 for multiple myeloma, a blood cancer.
â€śKyprolis came in light of expectations and was essentially flat quarter over quarter,â€ť Mark Schoenebaum, an analyst with ISI Group, wrote in a note to clients today. â€śWhile disappointing, the real potential for Kyprolis will not be realized until its label is expanded to include earlier lines of myeloma therapy.â€ť
Trial data are expected in 2014, with marketing approval in 2015, Schoenebaum said.
Revenue was boosted by higher sales of drugs including Amgenâ€™s top seller, Enbrel, for psoriasis and arthritis, which saw an increase of 7 percent to $1.16 billion; and Prolia, for osteoporosis, which increased 62 percent to $178 million.