Amgen on Thursday reported a fourth-quarter profit well below Wall Street estimates, hurt by a steep decline in sales of blockbuster rheumatoid arthritis drug Enbrel in addition to also higher-than-expected expenses, in addition to also its shares fell more than 3 percent.
nevertheless the earth’s biggest biotechnology company provided a 2018 earnings forecast range which has a midpoint of which easily exceeded analysts’ estimates in addition to also announced a $10 billion share repurchase program in addition to also a lower effective tax rate due to U.S. tax reform.
Excluding items, Amgen earned $2.89 per share, 14 cents below analysts’ average expectations, according to Thomson Reuters.
For 2018, Amgen forecast adjusted earnings per share of $12.60 to $13.70 in addition to also revenue of $21.8 billion to $22.8 billion. Analysts were looking for earnings of $12.71 per share in addition to also $22.8 billion in revenue.
“of which’s a big slow-growing biopharmaceutical company,” said Cowen in addition to also Co analyst Eric Schmidt. “We’re all waiting for them to do at least a modest size deal. They need another product or two.”
Amgen projected a 2018 adjusted tax rate of 14 percent to 15 percent. Some additional large drugmakers have announced rates of about 17 percent or 18 percent. AbbVie . surprised investors last week by announcing a 9 percent adjusted tax rate, rising to 13 percent over 5 years.
Amgen said of which plans capital investments of about $3.5 billion over the next 5 years, with 75 percent of of which inside United States. The company said of which decided to build a fresh biomanufacturing plant inside United States in addition to also will add jobs to build in addition to also run the facility. Amgen expects to announce the plant location inside second quarter.
Revenue for the quarter fell 3 percent to $5.8 billion, about in line with analysts’ expectations.
Enbrel sales fell 13 percent to $1.37 billion due to lower demand in addition to also net selling cost in a highly competitive market.
Sales of its next biggest product, the infection fighter Neulasta, were flat at $1.11 billion.
Prolia for osteoporosis grew 24 percent to $463 million.
The company said of which incurred $79 million in expenses in Puerto Rico for Hurricane Maria recovery in addition to also additional incremental expenses related to tax planning.
of which posted a fourth-quarter net loss of $4.26 billion, or $5.89 per share, as of which took a $6.1 billion charge related to U.S. tax reform. of which compared which has a profit of $1.93 billion, or $2.59 per share, a year ago.
Amgen shares fell to $179.35 in extended trading coming from a Nasdaq close at $185.56.