Pharma stock under pressure: Amgen, Inc. (NASDAQ: AMGN)

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Amgen, Inc. (NASDAQ: AMGN) stock fell over 1.7% on 30th October, 2019 (as of 9:59 am GMT-4; Source: Google finance) post third quarter of FY 19 performance. The company had reported 3 percent fall in the adjusted revenue to $5.74 billion in the third quarter of FY 19. Worldwide product sales was at $5.5 billion for the quarter, that had declined 1% year-over-year as growth for the newer products was slightly outpaced by declines in the mature brands impacted by increasing competition due to patent expirations. Other revenues have also fallen by $120 million year-over-year due to a prior year milestone payment.

The company has reported the net profit of $1.97 billion in the quarter, compared to $1.86 billion, in the year-ago quarter. In the third quarter, the product sales outside of the U.S. grew by 15%, with volume growth of 23%. The company anticipates the sales outside the U.S. to account for an increasing percentage of the total product revenues over time.

AAMGN in the third quarter of FY 19 has reported the adjusted earnings per share of $3.66. Due to share buybacks the number of Amgen shares outstanding is lowered by 7% from a year earlier.

Moreover, the company has posted the sales of new migraine drug Aimovig of $66 million for the third quarter, which is well lower than the $94.5 million projected by analysts, while sales of cholesterol fighter Repatha grew 40% to $168 million. That has also slightly missed the Wall Street estimates of $170.3 million. Sales of Neulasta, which fights infections by boosting white blood cells, has declined 32% to $711 million, and sales of kidney drug Sensipar fell by whopping 73% to $109 million due to the increased competition from cheaper generics and biosimilars. Amgen’s own biosimilar versions of several drugs sold by rival companies, reported sales of $173 million from $82 million in the previous quarter.

The company now expects full-year 2019 adjusted earnings to be in the range of $14.20 to $14.45 per share on revenue expected to be in the range of $22.8 billion to $23 billion. The company had previously forecast $13.75 to $14.30 per share on revenue of $22.4 billion to $22.9 billion. The analysts’ earnings estimate for 2019 were already ahead of the older forecast at $14.39 per share.

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