Amgen Reports Decline in Q3 Profit
Amgen reports decline in profit for Q3 due to impairment charge. Despite this, product sales show growth and exceed expectations.
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.
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.
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.
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%.