Amgen Q2 Profit Slips
Expenses Offset Revenue Growth
Revenue Rises 20% to $8.4 Billion
Amgen Inc. announced a 1% decline in its second-quarter profit on Tuesday due to increased expenses, which offset a significant 20% increase in revenue.
For the quarter ended June 30, the biotechnology company reported net income of $2.5 billion, down from $2.53 billion a year earlier. On a per-share basis, earnings fell to $4.01 from $4.02.
Total revenues, however, surged by 20% to $8.4 billion, exceeding analysts' expectations of $8.35 billion. This increase was primarily driven by strong sales of its blockbuster drugs such as Enbrel and Prolia.
"We delivered solid results in the second quarter, with strong revenue growth driven by our core products," said Robert Bradway, Amgen's CEO. "However, higher expenses related to investments in research and development and commercialization activities pressured our margins."
Despite the profit decline, Amgen remains optimistic about its future prospects. The company recently received FDA approval for its new heart failure drug, Corlanor, and is expecting to launch several other products in the coming years.
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