Amgen Q2 sales rise, company to lay off up to 2,900
Amgen powered through its second quarter with sales rising to $4.9 billion, up 8% compared to the same period last year, when sales hit $4.6 billion.
Much of the bounce came from RA drug Enbrel, which saw sales grow 7% to $1.2 billion, compared to the same period last year, due largely to price. Cancer drug Krypolis brought in $78 million in sales, but has no comparative performance, having joined Amgen's portfolio in the late-2013 Onyx acquisition.
Bone drug denosumab, when labeled Prolia, had sales soar 40% to $264 million, compared to the same period last year, due to increased demand. When labeled Xgeva, denosumab sales grew 20% to $299 million, compared to the same period last year. Amgen notes that higher demand drove Xgeva sales “despite competition from generic zoledronic acid.”
Sales of biologics Neupogen and Neulasta dipped 9% to $1.4 billion, compared to the same period last year. Medicaid rebates from 2013 played into some of this comparative decline, as so did sales for its competition. Generic competition will almost certainly increase now that Sandoz has filed its Neupogen biosimilar with the FDA.
The financials also came with a side of pink slips—Amgen announced it was laying off between 2,400 and 2,900 employees beginning this year and running into 2015. This first stage of the reorganization includes shuttering sites in Washington and Colorado. Amgen expects the cuts will trigger $700 million in savings by 2016. The firm said it expects to reinvest this money in the business.
Amgen expects to provide more reorganization details later this year.