Amgen (AMGN) topped fourth-quarter expectations late Tuesday, but shares slid after the biotech giant’s 2019 guidance came in weaker than expected.
In after-hours trading on the stock market today, Amgen stock dipped 1.9%. Shares closed the regular session up a fraction, at 192.11. Amgen stock is forming a double bottom with a potential buy point at 209.09.
For the fourth quarter, Amgen’s adjusted earnings of $3.42 per share grew 18% to beat the consensus of analysts polled by Zacks Investment Research of $3.26. Revenue advanced 7% to $6.23 billion, topping expectations for $5.88 billion.
Chief Executive Robert Bradway said new products will drive growth. An analyst on Monday downgraded Amgen stock on the likelihood for biosimilars to chip away at the No. 1 biotech’s legacy drugs. Its biggest drug, Enbrel, saw sales dip 8% in the fourth quarter.
“Looking to the future, we are encouraged by our long-term growth prospects driven by our portfolio of newer products, pipeline and ongoing success in international expansion,” Bradway said in a written statement.
One of Amgen’s newest products is migraine prevention drug Aimovig, which generated $95 million in fourth-quarter sales. Aimovig launched in the U.S. in the second quarter and rivals drugs from Teva Pharmaceutical (TEVA) and Eli Lilly (LLY).
Amgen also noted that four new products generated double-digit growth during the quarter. Sales of cholesterol drug Repatha spiked 62% to $159 million, leading growth in the period. Repatha rivals Regeneron Pharmaceuticals (REGN) and Sanofi‘s (SNY) Praluent.
But Amgen’s biggest drug faced some challenges. Sales of arthritis and psoriasis drug Enbrel fell 8% to $1.32 billion. Amgen blamed the dip in Enbrel sales to lower demand and lower net selling price. Sales of Amgen’s second-biggest product, Neulasta — a bone marrow-stimulating drug — grew 5% to $1.17 billion.
Guidance for 2019, though, came in below expectations. For 2019, Amgen sees EPS of $13.10-$14.30, minus certain items. The high end of Amgen’s outlook lagged the average view of analysts polled by Zacks for $14.45.
Amgen sees 2019 revenue of $21.8 billion to $22.9 billion. The midpoint lags analyst expectations for $22.87 billion.
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