Amgen Beats Analysts’ Estimates, Helped by Psoriasis Drug Otezla

(Bloomberg) -- Amgen Inc., maker of the blockbuster arthritis treatment Enbrel, saw an 8% increase in product sales in the fourth quarter of 2020, with newer drugs helping to offset declining sales of older ones threatened by generic competitors.

• Revenue rose 7% to $6.6 billion compared with a year earlier, Amgen said in a statement Tuesday. Those numbers were in line with analysts' expectations. Adjusted earnings per share were up 5% to $3.81, beating the median forecast of $3.34.

Key Insights

• The pandemic continues to hurt sales, with still fewer people visiting doctors' offices. The drugmaker said recovery will depend on the speed and effectiveness of the global vaccination rollout.
• The psoriasis drug Otezla was a standout of the quarter, generating $617 million of sales and $2.2 billion for the full year. Analysts expected quarterly sales of $577.25 million.
• Amgen picked Otezla up in 2019 from Celgene Corp. ahead of the company's sale to Bristol-Myers Squibb Co. But a competing drug from Bristol-Myers currently in trials may prove to be stiff competition.
• Sales of Enbrel decreased 5% year-over-year for the fourth quarter, and fell 4% for the full year due to a loss of volume as generics crept into the market.

Market Reaction

• Amgen shares fell 1.5% in late trading. They were up 4.6% this year through Tuesday's close.

Get More

• Read the statement.

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