Amgen Inc. (NASDAQ: AMGN) reported Wednesday that its first-quarter profit rose 15 percent due to higher sales of its anti-infection drugs as the health care reform bill will help full-year results, according to Associated Press.
Amgen said the health care legislation passed last month will cut $200 million to $250 million from fiscal 2010 results. Amgen expects adjusted profit and revenue will come in toward the lower end of its forecast of $5.05 to $5.25 per share on sales of $15.1 billion to $15.5 billion, as a result.
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Amgen's profit rose to $1.17 billion, or $1.18 per share, for the three months ended March 31, compared to $1.02 billion, or 98 cents per share, a year earlier. Excluding one-time costs, Amgen would have earned $1.30 per share, topping the $1.23 estimate of analysts surveyed by Thomson Reuters.
Revenue climbed 9 percent to $3.59 billion, slightly shy of analysts' $3.65 billion forecast.
Amgen said sales of Neulasta and Neupogen, which is used to prevent infections in chemotherapy patients, rose 10 percent to $1.18 billion. Sales of rheumatoid arthritis and psoriasis drug Enbrel increased 6 percent to $804 million from $758 million.
Sales of Amgen's anemia drugs rebounded 5 percent to $1.25 billion from $1.19 billion, as a 10 percent rise in Epogen sales helped offset flat sales of Aranesp.
Use of both anemia drugs began to drop in 2007 after studies linked them to side effects including faster tumor growth. Use of the drugs was restricted, which hurt Amgen's sales growth. The company is hoping to regain sales momentum with its osteoporosis drug Prolia, which is currently being reviewed by the Food and Drug Administration.
The FDA is scheduled to make a decision on Prolia by July 25. Wall Street sees Prolia as a potential billion-seller that could recharge Amgen's revenue growth.
Amgen shares closed down 2.4 percent to $58.71.
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