Amgen Inc. reported fourth-quarter and full-year financial results on Tuesday that topped analysts’ estimates as the company reaped the benefits of previously announced layoffs, a tax credit and strong drug sales.
For the fourth quarter, the Thousand Oaks pharmaceutical company reported adjusted net income of $1.67 billion ($2.16 a share), compared to $1.39 billion ($1.82) for the same quarter a year earlier. Revenue increased 6 percent to $5.3 billion.
Analysts on average expected earnings of $2.05 a share on revenue of $5.2 billion, according to Thomson Financial Network.
For the full year, Amgen had adjusted net income of $6.7 billion ($8.70) compared to $5.8 billion ($7.60) in 2013. Revenue climbed 7 percent to $20.1 billion. Analysts on average expected earnings of $8.59 a share on revenue of $19.9 billion.
The company said its total product sales were up 8 percent for the quarter compared to a year earlier, with its rheumatoid arthritis treatment Enbrel experiencing the largest gain among its blockbuster drugs with 11 percent sales growth.
Amgen benefited from $300 million in costs saving from its plans to lay off as many as 4,000 workers, or 20 percent of its global workforce, and reduce its facilities footprint by nearly a quarter. The layoffs were announced last quarter.
And the company recorded a $109 million tax benefit due to the extension of the federal R&D tax credit and other tax provisions.
The company offered positive guidance for 2015. Management expects earnings per share between $9.05 and $9.40 on revenue of $20.8 billion to $21.3 billion.
Also, Amgen announced regulatory progress for Kyprolis, the investigational cancer drug behind its $10.4 billion acquisition of Onyx Pharmaceuticals in 2013.
Amgen and Onyx have submitted a supplemental new drug application to the U.S. Food and Drug Administration and a marketing authorization application to the European Medicines Agency. The applications will seek approval to sell Kyprolis for the treatment of relapsed multiple myeloma.
“Following tremendous progress in our pipeline, we look forward to embarking on a new product cycle with the launch of important new medicines throughout 2015,” said Chief Executive Robert Bradway, in a statement.
The financial results were announced after market close. Amgen shares lost 84 cents, or less than 1 percent, to $158.89 on the Nasdaq earlier in the day.