Amgen Inc.'s profit jumped in the second quarter after a write-off associated with an acquisition last year reduced operating expenses.
The Thousand Oaks, Calif.-based company reported net income of $1.32 billion in the three months through June, compared with $464 million in the same period a year earlier. Earnings per share reached $2.45 from 81 cents and adjusted earnings per share rose to $4.65 from $1.77. Revenue increased to $6.6 billion from $6.5 billion in the year-earlier period.
The sales figure was slightly better than expected, and the profit number underperformed market expectations. The median forecast by analysts surveyed by FactSet was for sales of $6.5 billion and net income of $2.4 billion.
Amgen said the rise in profit was driven by lower operating expenses after writing off $1.5 billion in acquired in-process research and development associated with the acquisition of Five Prime Therapeutics in the second quarter of last year. Total operating expenses fell to $4.4 billion from $5.7 billion a year earlier.
Amgen said earlier Thursday that it plans to buy ChemoCentryx Inc. for $3.7 billion in cash, giving Amgen access to a treatment for ANCA-associated vasculitis that was approved by the Food and Drug Administration last year.
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