Amgen (AMGN) actually rallied a bit after hours yesterday. But, revenue growth was hard to come by.
Amgen reported net income of $1.02 billion, or 90 cents per share, for the quarter ended June 30, compared with $14 million, or 1 cent a share, in the same period last year. Revenue grew slightly to $3.73 billion from $3.60 billion in the year-ago period.
The numbers beat expectations by a small amount.
But, Amgen is still in the woods. According to Reuters, sales of its biggest drug, Aranesp, fell 19 percent in the United States amid safety concerns. One analyst commented that many investors have overestimated the potential sales decline of the anemia drugs. "They are pricing in the worst-case scenario."
That is not the case. Amgen is facing the kind of backlash with Aranesp that Boston Scientific (BSX) has had with its stent business and GlaxoSmithKline (GSK) has had with diabetes drug Avandia.
Once patients, doctors, and the press sour on a drug or medical device, winning back sales is nearly impossible.
Douglas A. McIntyre
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.