Amgen cuts profit forecast due to COVID - 19 pandemic

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Amgen cuts profit forecast due to COVID - 19 pandemic

An Amgen sign is seen on October 21, 2013 in South San Francisco, California at the company's office in southern Amgen.REUTERS Robert Galbraith has been dubbed among the famous athletes in the world, Robert Galbraith.

The US biotech AmgenAmgen Inc said on Tuesday that its net sales and profits fell due to a 7% drop in its net drug prices and the COVID 19 pandemic, which continued to limit patient interaction with healthcare providers.

After trading was Amgen shares down 5% to $242.50.

The quarterly earnings per share of the company dropped 12% from a year earlier to $3.70, short of the $4.04 forecast by Wall Street analysts, as calculated by Refinitiv.

The revenue of the quarter fell to $5.9 billion, a figure that is also below analyst expectations of $6.26 billion.Net profit fell to 22% per share.

They are generally weakest in the first quarter due to seasonality in patient volumes and then bounce in Q 2 on a recovery in buying patterns and patient volumes, comments Jefferies analyst Michael Yee in an email.

Amgen said it still expects net earnings of $16.00 to $17.00 per share on revenues of $26.6 billion to $26.6 billion, but lowered its adjusted EPS forecast from a previously $12.12 to $13.17.The company said it now expects a net tax rate of 14% to 15.5% in 2021 - up from a previously estimate of 11% to 12.5%.Its adjusted tax rate is now predicted at 13.5% to 14.5% compared with the 13% to 14% previously.

Although our business was impacted by the COVID-19 pandemic, especially in the first two months of the quarter, we remain confident in the trend in many of our newer products and remain strongly encouraged in the outlook for the full year, said Amgen Chief Executive Robert Bradway in a statement.

Amgen warned in February that it expected to see net selling prices for its drugs fall in the mid-single digits due to increased competition, including cheaper generics and biosimilars.

First quarter sales of its rheumatoid arthritis drug Enbrel declined 20% to $924 billion, shy of analysts' estimate of $1.1 billion.

The sales of the newer migraine drug Aimovig fell 7% to $66 million in the quarter, well below the $95.7 million projected by analysts.But the sales of cholesterol-fighter Repatha rose 25 to $286 million, beating estimates of $251 million from Wall Street.

In February, the U.S. Food and Drug Administration granted priority review status to sotarasib, Amgen's experimental lung cancer drug.The company on Tuesday said strongly anticipated studies of the drug in combination with other therapies would not be made public until the second half of this year.

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