Amgen, Inc.(NASDAQ:AMGN) stock fell over 1.7% in the after-hours session on Feb 1st, 2018 (Source: Google finance). The stock lost over 5.3% in the last four days.
For the fourth quarter of 2017, the group’s revenues fell 3% against the fourth quarter of 2016 to $5.8 billion. For the full year of 2017, the total revenues fell 1% yoy to $22.8 billion. This was mainly due to Total product sales fall by 2% for the fourth quarter of 2017. The Sensipar/Mimpara® (cinacalcet) sales were flat on the back of rise in net selling price while Neulasta® (pegfilgrastim) sales was flat during the fourth quarter on the back of falling unit demand. Aranesp® (darbepoetin alfa) sales fell 7% yoy due to weak unit demand, while Enbrel® (etanercept) sales lost 13% during the fourth quarter. EPOGEN® (epoetin alfa) sales lost 15% yoy during the fourth quarter hurt by lower net selling price. NEUPOGEN® (filgrastim) sales fell 27% during the fourth quarter.
The group’s GAAP loss per share fell to $5.89 during the fourth quarter while Operating Margin fell by 3.6 percentage points in the fourth quarter to 40.3 percent.
For the full year of 2018, the group forecasts a 15% yoy rise. But the quarterly run rate would be hurt by an unfavorable true up of a royalty in Q1, which was offset by an incremental milestone in the second half of the year. The group forecasts 2018 total revenues to be in the range of $21.8-$22.8 billion while EPS is expected to be in the range of $11.18-$12.36 on a GAAP basis and $12.60-$13.70 on a non-GAAP basis. On the other hand, management reported that they entered 2018 on a positive note while the group expects their Repatha, Prolia, and KYPROLIS, with Aimovig to deliver a decent performance going forward. Management believes that they delivered a decent 2017 performance despite the rising competition for many of their major products, several of which have lost patent protection. Therefore, they invested heavily in the future of their business. For 2017, the group’s payout to their shareholders rose 14% as we improved our return on capital to 33%.