Amgen Profit Falls Despite Rising Sales of Top Drugs

Amgen Inc., the world’s largest biotechnology company, said third-quarter net income fell 8.1%, though sales increased for its two biggest drugs, Epogen and Neupogen.

Net income fell to $329.9 million, or 30 cents a share, from $358.9million, or 33 cents, a year earlier, when the company had a 4-cents-a-share gain from a legal award. The results were in line with the 29-cent average estimate of analysts surveyed by Thomson Financial/First Call.

Revenue rose 5.3% to $1 billion from $950 million.

Sales of Amgen’s top-selling anemia drug, Epogen, and a new version called Aranesp rose 4.8% to $520 million from $496 million in Epogen sales alone a year ago. Aranesp, a longer-acting version of Epogen, was approved for sale in the U.S. last month for use by kidney disease patients.

“Aranesp is the next big growth driver for the company,” said Greg Aurand, co-manager of the Orbitex Life Science & Biotechnology Fund, which owns Amgen shares. “We’re looking to see the effects of Aranesp. If that product doesn’t take off, we’ll be disappointed in the growth rate for the company.”

Sales of Neupogen, used to prevent infections in chemotherapy patients, increased to $360 million from $353 million.

Amgen reiterated its forecast that earnings per share and product sales in 2001 would increase in the “low-double-digit rates” from last year in percentage terms.

Amgen Chief Executive Kevin Sharer said the company would provide its 2002 outlook later.

Amgen announced results after the close of U.S. stock markets. Its shares rose $1.17 to close at $58.25 on Nasdaq.