Amgen 4th-qtr net profit plunges 16% but sales up; gets boost from fiscal cliff legislation

USA-based Amgen (Nasdaq: AMGN), the world's largest biotechnology firm, posted financials after markets closed yesterday showing that, for the fourth quarter of 2012, net income fell 16% to $788 million from the prior-year period, as higher costs for production, marketing, research and other items offset higher sales for many of its biologic medicines. Total revenues increased 11% to $4.42 billion, with product sales growing at the same rate. Adjusted earnings per share grew 16% to $1.40 due to 11% adjusted operating income growth and lower shares outstanding.

For the full year, total revenues increased 11% to $17.27 billion, with 9% product sales growth driven by strong performance across the portfolio. Adjusted EPS grew 22% to $6.51 due to 15% adjusted operating income growth and lower shares outstanding. GAAP EPS was $1.01 in the fourth quarter compared to $1.08 a year ago, and $5.52 for the full year compared to $4.04 in 2011. Full year 2011 was negatively impacted by a previously disclosed charge for a legal settlement reserve.

"We achieved strong operating performance in 2012 as we delivered for patients and created value for shareholders," said Robert Bradway, chairman and chief executive officer at Amgen, adding: "We enter 2013 with good momentum, a broad late-stage pipeline and a continued focus on building our business internationally."