Amgen, Inc.(NASDAQ: AMGN) stock lost over 2.7% in the pre-market session on October 26th, 2017 (as of 7:48AM EDT; Source: Google finance as their revenues fell 1% on a yoy basis in the third quarter of 2017.
The group’s GAAP operating income fell 3% to $2.4 billion while GAAP operating margin fell 1.1 percentage points to 44.7 percent. GAAP EPS and operating income were hurt by non-cash charges related to their decision to discontinue internal development of AMG 899, an oral CETP inhibitor. GAAP earnings per share (EPS) enhanced 3% to $2.76 while Non-GAAP EPS rose 8% to $3.27.
Their XGEVA® (denosumab) sales fell 2% during the quarter on a yoy basis hurt by falling unit demand from a shift in timing of purchases by some large customers. Aranesp product sales fell 3% yoy hurt by an unfavorable impact from foreign exchange and unit volumes. Enbrel (etanercept) sales lost 6% yoy due to a decrease in unit demand and, to a lesser extent, and falling net selling price. Neulasta® (pegfilgrastim) sales lost 6% yoy hurt by the shift in timing of purchases by some major customers coupled with declines in the use of myelosuppressive chemotherapy regimens. EPOGEN lost 21% year-over-year during the third quarter of 2017 hurt by falling net selling prices as well as unfavorable inventory changes. NEUPOGEN® (filgrastim) sales lost 25% hurt by rising competition.
The group forecasts rising operating expenses in the fourth quarter of 2017 against the third quarter of 2017 due to the typical pattern for the business.
The group got second biosimilar approval with MVASI, a biosimilar to Avastin during the quarter and submitted their biosimilar to Herceptin to regulators for review. They expect biosimilars business to be an attractive source. Amgen is taking steps to develop their pipeline to sustain long-term growth. They are pursuing Phase 3 trials for omecamtiv mecarbil in heart failure, and CNP520 for Alzheimer’s disease. The group is moving Tezepelumab into Phase 3 for asthma. The group’s launches in 2018, includes Repatha outcomes label, the Enbrel AutoTouch device, Aimovig for migraine, Parsabiv, the XGEVA multiple myeloma indication.