By Deena Beasley
(Reuters) – Amgen Inc on Thursday reported lower first-quarter profit as expenses rose and a 2% increase in sales of its own drugs was offset by lower revenue from its deal to manufacture COVID-19 antibody treatments for Eli Lilly and Co.
Product sales by volume grew 14% from a year earlier, but was partially offset by a 5% decline in net selling prices due to unfavorable foreign exchange and sales deductions, such as rebates.
Amgen reported revenue of $6.1 billion for the quarter, down 2% from a year earlier, but in line with analysts’ estimates of $6.13 billion, according to Refinitiv data.
Adjusted earnings per share decreased to $3.98 from $4.25 a year ago.
Amgen said sales of cholesterol drug Repatha rose 18% from a year earlier to a record $388 million, while sales of migraine drug Aimovig fell 32%, driven by lower prices.
Sales of psoriasis drug Otezla fell 13% due to lower inventory levels and prices. Amgen said it expects further price pressure through 2023.
Operating expenses for the quarter increased 6%, research and development costs rose 12% and Amgen said its tax rate rose 5.6 percentage points, primarily due to a Puerto Rico tax law change.
The California-based biotechnology company slightly increased its forecast for full-year 2023 revenue to range of $26.2 billion to $27.3 billion, from the previous view of $26 billion to $27.2 billion, excluding the impact of its pending acquisition of Horizon Therapeutics Plc.
Amgen said it still expects the deal to close in the first half of this year.
Analysts estimate $26.7 billion in revenue for the full year.
In December, Amgen agreed to buy Horizon in a deal valued at $27.8 billion, fortifying its rare diseases portfolio with the access to blockbuster thyroid eye disease treatment Tepezza.
(Reporting By Deena Beasley; Editing by Bill Berkrot)
