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Amgen’s (AMGN) Troubled Quarter

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By Douglas A. McIntyre Published
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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

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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