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Earnings Results: Amgen still sees pandemic impact, with fewer patients starting treatments

Amgen Inc. stock fell in the extended session Tuesday after the pharma company reported rising adjusted profit for the third quarter but said the pandemic-related gap in doctor’s office visits and fewer people starting treatments continue to impact its business.

Amgen
AMGN,
+2.13%

said it earned $1.9 billion, or $3.31 a share, in the third quarter, compared with $2 billion, or $3.43 a share, in the year-ago period. Adjusted for one-time items, Amgen earned $4.67 a share.

Revenue rose 4% to $6.7 billion, thanks to higher unit demand, which was partially offset by lower net selling prices, the company said.

Related: Sales of Gilead’s COVID-19 drug jumped in conjunction with the surge in delta cases this summer

Analysts polled by FactSet expected Amgen to report adjusted earnings of $4.28 a share on sales of $6.7 billion.

Amgen’s newest product, lung-cancer treatment Lumakras, “is off to a strong start and our robust pipeline of potential new medicines across all stages of development sets us up well to drive growth over the long term,” Chief Executive Robert A. Bradway said in a statement.

See also: Merck’s COVID-19 pill could bring in up to $7 billion in sales next year

Amgen guided for 2021 revenue between $25.8 billion and $26.2 billion, and adjusted EPS between $16.50 and $17.10. That’s in line with FactSet consensus.

The company continues to see a “gradual recovery” from the impact of the COVID-19 pandemic, with improvement in patient visits and diagnoses through the quarter. But the gap in diagnosis visits during the pandemic “has suppressed the number of new patients starting treatment, which we expect will continue to impact our business for the remainder of the year,” Amgen said.

Shares of Amgen fell 1.6% after hours, and have lost nearly 7% so far this year, contrasting with gains of around 23% for the S&P 500 index
SPX,
+0.37%
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