Amgen 3rd-qtr 2011 profits nose dive on legal charges

USA-based Amgen (Nasdaq: AMGN), the world’s largest biotechnology company, saw its third-quarter 2011 profit plunge to $454 million, compared to $1.2 billion in the like 2010 period, largely as a result of a provision of $780 million to settle legal charges. On a reported basis in accordance with US GAAP, Amgen's GAAP earnings per share were $0.50 in the third quarter of 2011 compared to $1.28 in the third quarter of 2010. Sales for the quarter rose 3% to $3.94 billion.

Amgen said it has reached an agreement in principle to settle allegations relating to its sales and marketing practices arising out of the previously disclosed federal civil and criminal investigations pending in the US Attorney's Offices for the Eastern District of New York and the Western District of Washington.

Adjusted earnings per share (EPS) were $1.40 for the third quarter of 2011, an increase of 3% compared to $1.36 for the third quarter of 2010. Adjusted net income decreased 3% to $1.28 billion.