THOUSAND OAKS, Calif. – Amgen Inc. (Nasdaq: AMGN) today posted a full-year profit of $3.17 billion, an increase of 7.3 percent from the 2006 profit of $2.95 billion. Diluted earnings per share increased 13.7 percent to $2.83, from $2.48 in 2006, thanks in part to a 5.6-percent decline in the number of shares outstanding.
Full-year revenue increased 3.5 percent compared with a year ago, to $14.77 billion in 2007, as product sales grew 3.3 percent to $14.31 billion while other revenue grew 12.2 percent to $460 million.
Full-year results were negatively affected by the write-off of $590 million of in-process research and development at recent acquisitions Alantos and Illypsa, Amgen said. Fourth-quarter and full-year results both were affected by the similar writeoff of $1.33 billion in R&D expenses related to the acquisitions of Avidia and Abgenix.
Both periods also were affected by Amgen’s previously announced restructuring, which resulted in charges of $157 million in the fourth quarter and $739 million in all of 2007. That restructuring was spurred by the Aug. 15 changes in the regulatory and reimbursement status of the company’s Aranesp (darbpoetin alfa) and other erythropoiesis stimulating agents (ESAs). (READ MORE.)
“2007 was Amgen’s most challenging year,” Kevin Sharer, the company’s chairman and CEO, said in a statement this morning.
But, he added, “despite the unexpected reduction in revenues of our erythropoietin products, we delivered earnings per share very close to the low end of our original guidance. I am also encouraged by our recent denosumab trial results and the potential of our pipeline.”
For the quarter ended Dec. 31, Amgen posted a profit of $835 million, an increase of 0.24 percent from the 2006 fourth quarter’s $833 million. Diluted earnings per share increased to 76 cents from the year-ago 71 cents, aided by a 7.4-percent decline in the number of shares outstanding to 1,092.
Fourth-quarter revenue that shrank 2.3 percent to $3.74 billion as product sales fell 3.2 percent year-over-year to $3.62 billion, while other revenue was unchanged from the 2006 fourth quarter at $127 million.
Looking ahead to the current year, Amgen predicted full-year revenue of $14.2 billion to $14.6 billion and earnings per share of $4 to $4.30. “2008 presents challenges and opportunities,” Sharer said, “and while we are optimistic, we are ready for whatever might come our way.”
Amgen Inc. (Nasdaq: AMGN) – based in Thousand Oaks, Calif., with operations in 10 other U.S. locations, including West Greenwich – is a biotechnology company focusing on the development and production of new medicines for human use. Additional information is available at www.amgen.com.
