Earnings roundup: Amgen, GSK, Forest, Novartis
Amgen, in its first post-Onyx-acquisition earnings report, cited a government order for Neupogen worth $158 million as a major reason for its higher-than-expected quarter. The company's high-profile, $10.4-billion buy-out of Onyx so far has seen sales of myeloma drug Kyprolis grow 6% from the previous quarter to $65 million. Revenue for the third quarter came in at $4.74 billion, a hike of 10%.
GlaxoSmithKline saw the fallout of its bribery scandal translate into its third-quarter earnings, with Chinese drug sales plummeting by 61%. International sales for GSK came in at $10.6 billion, 10% higher than this period last year, as the Chinese market represents only 4% of the company's overall sales. Chief executive Andrew Witty said during a conference call that R&D costs should trend lower as the firm heads into 2014.
Forest Labs, under newly appointed chief executive Brent Saunders, reported-second quarter fiscal earnings this week and saw net sales grow 17.3% to $811.4 million. Namenda, its Alzheimer's treatment, saw sales of $11.5 million with year-over-year growth of 7.8%. Its hypertension drug, Bystolic, also had a strong quarter, jumping 22.1% over last year's Q3. The company also reported increased SG&A expenses of $393 million, an increase of 8.2%.
Novartis raised its full-year sales and profits in its Q3 earnings report after generic competition to Diovan remains an ocean away, as FDA has yet to approve India's Ranbaxy Laboratories to ship its product to US shores. The Swiss drugmaker's net sales rose 4% in the third quarter to $14.34 billion, and it hiked its full-year forecast for the second quarter in a row. Chief executive Joe Jimenez, as reported by Reuters, said that R&D spending—which accounted for 22% of net sales—was higher than the company though it ought to be.