Amgen Falls After Earnings Update Reveals Embarassingly 'Bare' Pipeline
Published: Jul 27, 2017
THOUSAND OAKS, Calif., July 25, 2017 /PRNewswire/ -- Amgen (NASDAQ:AMGN) today announced financial results for the second quarter of 2017. Key results include:
- Total revenues increased 2 percent versus the second quarter of 2016 to $5.8 billion.
- Product sales grew 2 percent driven by Prolia® (denosumab), Repatha® (evolocumab) and KYPROLIS® (carfilzomib).
- GAAP earnings per share (EPS) increased 18 percent to $2.91 driven by higher operating margins.
- GAAP operating income increased 13 percent to $2.7 billion and GAAP operating margin increased 4.9 percentage points to 48.4 percent.
- Non-GAAP EPS increased 15 percent to $3.27 driven by higher operating margins.
- Non-GAAP operating income increased 9 percent to $3.1 billion and non-GAAP operating margin increased 3.8 percentage points to 55.2 percent.
- 2017 EPS guidance increased to $10.79-$11.37 on a GAAP basis and $12.15-$12.65 on a non-GAAP basis; total revenues guidance revised to $22.5-$23.0 billion.
- The Company generated $2.1 billion of free cash flow.
"Our continued solid performance this quarter is yet another indication that we are on track to deliver on our long-term growth objectives," said Robert A. Bradway, chairman and chief executive officer. "Our newer products are registering strong volume-driven growth globally and we expect their contribution to continue to increase over time, offsetting declines in mature products."
$Millions, except EPS and percentages
GAAP Operating Income
GAAP Net Income
Non-GAAP Operating Income
Non-GAAP Net Income
References in this release to "non-GAAP" measures, measures presented "on a non-GAAP basis" and to "free cash flow" (computed by subtracting capital expenditures from operating cash flow) refer to non-GAAP financial measures. Adjustments to the most directly comparable GAAP financial measures and other items are presented on the attached reconciliations.
Product Sales Performance
- Total product sales increased 2 percent for the second quarter of 2017 versus the second quarter of 2016.
- Repatha sales increased driven by higher unit demand.
- BLINCYTO®(blinatumomab) sales increased 43 percent driven by higher unit demand.
- KYPROLIS sales increased 23 percent driven by higher unit demand.
- Prolia sales increased 15 percent driven primarily by higher unit demand.
- Nplate® (romiplostim) sales increased 15 percent driven primarily by higher unit demand.
- Sensipar®/Mimpara®(cinacalcet) sales increased 10 percent driven primarily by net selling price.
- Aranesp®(darbepoetin alfa) sales increased 6 percent driven by higher unit demand.
- Vectibix® (panitumumab) sales increased 5 percent driven by higher unit demand.
- XGEVA®(denosumab) sales increased 4 percent driven primarily by higher unit demand.
- Enbrel®(etanercept) sales decreased 1 percent due to the impact of competition, offset partially by favorable changes in inventory and net selling price.
- Neulasta® (pegfilgrastim) sales decreased 5 percent driven by lower unit demand.
- EPOGEN® (epoetin alfa) sales decreased 12 percent driven primarily by net selling price.
- NEUPOGEN® (filgrastim) sales decreased 30 percent driven primarily by the impact of competition.
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