Neupogen Sales Boost Amgen Profit

Amgen Inc. reported a 12% increase in first-quarter profit Thursday, driven by higher sales of its chemotherapy-related drug, Neupogen.

Net income rose to $340.9 million, or 32 cents a share, from $304.9 million, or 28 cents, a year earlier. Revenue climbed 12% to $1.01 billion from $901.6 million.

Amgen raised its sales forecast for the year, buoyed by optimism about Neulasta, a longer-acting treatment for chemotherapy patients. The drug, a second-generation version of Neupogen, was launched this month.

Amgen said sales growth in 2002 would be in the low-20% range. The previous estimate of sales growth in the mid-teens did not reflect sales of Neulasta, which boosts production of infection-fighting white blood cells.

However, the updated forecast does not take into account Amgen’s pending $16-billion acquisition of Immunex Corp. Shareholders of both companies will vote next month on the deal, which is expected to close by June.

Immunex has run into a series of production problems with Enbrel, the rheumatoid arthritis drug that drove the Amgen deal. The company announced this week that an Enbrel factory under construction in Rhode Island will open later than expected, probably not until the third quarter of this year. The company lowered its estimate of 2002 Enbrel sales to $900 million from $1 billion.

Amgen executives, in a conference call with analysts, acknowledged that the delay could affect their sales projections for Enbrel, estimated at $1.6 billion in 2003. Amgen executives said they would not be able to fully assess the situation until after the merger. But George Morrow, Amgen sales and marketing executive vice president, said, “Clearly, some assumptions have deteriorated.”

Amgen reported that combined sales of anemia drugs Epogen and Aranesp grew 10% in the quarter to $551 million, up from $503 million for only Epogen a year earlier.