Amgen, the biotechnology company based in Thousand Oaks, Calif., has announced a decline in profit for the third quarter. The decrease is attributed to an impairment charge related to the discontinued development of one of its drug candidates.

Financial Performance

In the third quarter, Amgen reported a profit of $1.73 billion, or $3.22 per share, compared to $2.14 billion, or $3.98 per share, in the same period last year. While this result fell short of analysts' expectations of $3.64 per share, adjusted earnings of $4.96 per share exceeded the forecast of $4.68 per share.

The company's revenue for the quarter reached $6.9 billion, representing a 4% increase from the previous year. However, this figure missed analysts' predictions of $6.923 billion.

Impairment Charge Impact

A net impairment charge of $650 million resulted in the decline of Amgen's profit. This charge is associated with the discontinuation of the development of AMG 340, a potential treatment for certain forms of prostate cancer.

Product Sales and Growth

Despite the decline in profit, Amgen reported a 5% increase in product sales compared to last year. This growth was driven by double-digit volume increases in Blincyto, Evenity, Repatha, and Nplate.

The quarter also saw a combination of factors affecting sales numbers. An 11% increase in volumes offset a 3% drop in selling prices and unfavorable changes to estimated sales deductions, which decreased by 3%.

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