Amgen Inc. has posted lower net profit of $1,073 million during the first quarter ended March 2014 as against $1,434 million in the corresponding period of last year. Its total revenues increased by 7 per cent to $4,521 million from $4,238 million.

The product sales growth of 5 per cent was driven by Kyprolis (carfilzomib), Xgeva (denosumab), Prolia (denosumab) and Neulasta (pegfilgrastim). The first quarter includes results for Onyx Pharmaceuticals, Inc. (Onyx), which was acquired on October 1, 2013.

Its adjusted operating income increased by 18 per cent to $1,860 million, driven by a significant increase in the profitability of Enbrel (etanercept) following the end of the Enbrel profit share in the fourth quarter of 2013.

The company generated $1.0 billion of free cash flow, an increase of 9 per cent. EPS decreased by 25.5 per cent to $1.40, due to favourable tax items in the first quarter of 2013.GAAP The operating income was $1,364 million compared to $1,442 million.  

"Strong underlying demand for our products and growth in adjusted operating income make us confident in our full-year growth outlook," said Robert A. Bradway, chairman & chief executive officer. "We continue to advance our robust late stage pipeline and expect to submit global filings for evolocumab in 2014."

For the full year 2014, the company expects total revenues in the range of $19.2 billion to $19.6 billion and adjusted EPS to be in the range of $7.90 to $8.20. This includes an $800 million incremental operating income contribution due to the end of the Enbrel profit share. Adjusted tax rate to be in the range of 15 per cent to 16 per cent. This assumes the federal R&D credit will be extended for 2014 and also includes the impact of the foreign tax credit associated with the Puerto Rico excise tax. The Puerto Rico excise tax credit reduces the adjusted rate by three to four percentage points.