Amgen revenue misses analyst estimates

Amgen Inc., the world’s largest biotechnology company by sales, reported first-quarter revenue below analysts’ estimates on lower-than-expected demand of its top drug, Enbrel.

Quarterly sales increased 6.6 percent to $4.52 billion compared with a year earlier, missing the $4.75 billion average of 19 analysts’ estimates compiled by Bloomberg.

Amgen is seeking to expand its portfolio of products from Enbrel, its arthritis drug, and its anemia medicines led by Neulasta. The Thousand Oaks, California-based company acquired Kyprolis for blood cancer in its purchase last year of Onyx Pharmaceuticals Inc. and an experimental cholesterol drug produced successful results in a late-stage trial reported last month.

Sales of Enbrel declined 5 percent to $988 million in the quarter because of lower unit demands, Amgen said today in a statement. Analysts projected $1.11 billion.

Kyprolis also disappointed analysts with the company reporting $68 million in first-quarter sales compared with the average estimate of $82.2 million. Analysts are closely watching two studies of the drug which are key to the treatment’s introduction in Europe. Amgen said the results would be announced in the second or third quarter this year. Previously, Amgen said results would come in the first half.

Net income fell to $1.07 billion, or $1.40 a share, from $1.43 billion, or $1.88, a year earlier, the company said in its statement. Adjusted for one-time items, profit was $1.87 a share, missing the $1.94 average of 22 analysts’ estimates compiled by Bloomberg.

Amgen repeated its 2014 forecast of $19.2 billion to $19.6 billion in revenue, and earnings per share excluding one-time items in the range of $7.90 to $8.20.