Amgen’s Profit Rises 20% on Drug Sales

Amgen Inc.’s profit rose 20% in the fourth quarter on higher sales of drugs for anemia and rheumatoid arthritis, the biotechnology company said Thursday.

Net income rose to $547 million, or 41 cents a share, from $456 million, or 34 cents, in the year-earlier quarter. Revenue rose 33% to $2.3 billion, driven by Aranesp for anemia and Enbrel for rheumatoid arthritis.

Excluding special charges related to its 2002 acquisition of Immunex Corp. and other items, Amgen had profit of $615 million, or 46 cents a share, up from $472 million, or 35 cents, a year earlier.

Wall Street had expected earnings before charges of 48 cents a share, according to a survey of analysts by Thomson First Call.

Expenses rose 35% in the quarter, more than Wall Street had anticipated, because of higher drug research and development spending and increased marketing costs.

For the year, Thousand Oaks-based Amgen posted profit of $2.3 billion, or $1.69 a share, reversing a loss of $1.4 billion, or $1.21, in 2002 when Amgen recorded a $2.9-billion charge related to the Immunex purchase.

Revenue in 2003 soared 51% to $8.4 billion from a year earlier. Anemia drugs Aranesp and Epogen accounted for 48% of 2003 revenue.

Chief Executive Kevin Sharer said he was pleased with the company’s performance last year. Enbrel, with sales of $1.3 billion for the year, regained its leadership in the rheumatoid arthritis market from Remicade, a drug sold by Johnson & Johnson, he said.

Aranesp made strong inroads in the United States and Europe against market leader Procrit, another drug sold by Johnson & Johnson, Sharer said.

“When you have a year like 2003, you have to be happy,” he said. “Now it is 2004 and we know the challenge is to do it again this year.”

Amgen has already signaled that the pace of earnings growth would slow in 2004 but remain in the low to mid-20% range.

Amgen announced its results after the market closed. Amgen closed down $1.34 at $61.47 on Nasdaq. In after-hours trading, Amgen shares rose to $63.12. The company’s shares rose 28% in 2003, a year in which the Nasdaq composite index jumped 50%.