Amgen Inc has suffered minor setback during the first quarter ended March 2011 and its net income declined by 1.9 per cent to $1258 million from $1282 million in the corresponding period of last year. Its total revenue increased by 3 per cent to $3,706 million versus $3,592 million in the first quarter of 2010. It reported adjusted earnings per share (EPS) of $1.34 for the first quarter of 2011, an increase of 3 per cent compared to $1.30 for the first quarter of 2010. Its R&D expenditure increased by 14.9 per cent to $703 million from $617 million.
"We had solid revenue growth in the first quarter," said Kevin Sharer, chairman & CEO. "Prolia continues to build momentum and XGEVA is off to a strong start. Our operating costs grew in the quarter as we absorbed the new US Healthcare Reform Excise Fee, invested in launches of Prolia and XGEVA and in clinical development programmes transitioning to phase 3."
Total product sales were $3,618 million in the first quarter of 2011 versus $3,528 million in the first quarter of 2010. US product sales increased 4 per cent to $2,778 million in the first quarter of 2011 versus $2,677 million in the first quarter of 2010. International sales decreased by one per cent to $840 million in the first quarter of 2011 versus $851 million in the first quarter of 2010. Foreign exchange had a slightly unfavourable impact on the first quarter of 2011 as compared to the first quarter of 2010.
On a reported basis and calculated in accordance with United States (US) Generally Accepted Accounting Principles (GAAP), Amgen's GAAP diluted EPS were $1.20 in the first quarter of 2011, an increase of 2 per cent compared to $1.18 in the same quarter last year. GAAP net income of $1,125 million in the first quarter of 2011 decreased 4 per cent from $1,167 million in the first quarter of 2010.
Amgen's first quarter of 2011 financial results were positively impacted by the recently enacted Puerto Rico excise tax associated with the company's manufacturing operations in Puerto Rico. This excise tax is accounted for as a manufacturing cost that is capitalized in inventory and expensed when the products are sold. For US income tax purposes, a significant portion of the excise tax results in a foreign tax credit that is recognized when the tax is paid. This difference in the timing of recognizing the expense and the applicable tax credit positively impacted the first quarter of 2011 financial results.
Aranesp (darbepoetin alfa) sales decreased 7 per cent to $580 million in the first quarter of 2011 versus $627 million in the first quarter of 2010. US Aranesp sales decreased 7 per cent to $250 million in the first quarter of 2011 versus $268 million in the first quarter of 2010, due principally to a mid-teens percentage point decrease in unit demand, offset partially by an increase in the average net sales price. This sales decrease reflects an overall decline in the segment. International Aranesp sales decreased 8 per cent to $330 million in the first quarter of 2011 versus $359 million in the first quarter of 2010, due principally to decreases in both unit demand and the average net sales price, also reflecting an overall decline in the segment.
Epogen (Epoetin alfa) sales decreased 14 per cent to $535 million in the first quarter of 2011 versus $623 million in the first quarter of 2010, due primarily to a decline in unit demand, offset slightly by an increase in the average net sales price. The decrease in unit demand reflects a decrease in dose utilization as healthcare providers continued to implement new dose regimens in connection with the implementation of the bundled payment system, offset slightly by patient population growth.
Combined Neulasta (pegfilgrastim) and Neupogen (Filgrastim) sales increased 4 per cent to $1,232 million in the first quarter of 2011 versus $1,179 million in the first quarter of 2010. Combined US Neulasta and Neupogen sales increased 8 per cent to $930 million in the first quarter of 2011 versus $862 million in the first quarter of 2010, driven primarily by an increase in the average net sales price, and, to a lesser extent, an increase in unit demand.
Enbrel (etanercept) sales increased 9 per cent to $875 million in the first quarter of 2011 versus $804 million in the first quarter of 2010, driven primarily by an increase in the average net sales price, and, to a lesser extent, an increase in unit demand. This increase reflects segment growth, offset partially by share declines. ENBREL continues to maintain a leading position in both the rheumatology and dermatology.