Cost cuts help Amgen earnings beat estimates

Amgen Inc., the world’s largest biotech company in revenue, reported first-quarter profit Thursday that beat Wall Street expectations as cost cutting helped offset plunging sales of its anemia drugs.

The Thousand Oaks-based company posted net income of $1.14 billion, or $1.04 a share, for the quarter that ended March 31, compared with $1.11 billion, or 94 cents, a year earlier.

Excluding stock options and other one-time expenses, Amgen would have earned $1.22 billion, or $1.12 a share.

On the same basis, the company’s earnings beat the average estimate of analysts surveyed by Thomson Financial by 8 cents a share.

Revenue was $3.61 billion, down from $3.68 billion in the same quarter last year, matching analysts’ predictions.

Sales of Amgen’s top-selling anemia drugs, Aranesp and Epogen, fell as warning labels on the drugs were expanded to limit their recommended use to patients with incurable cancers.

Aranesp sales fell 25% to $761 million, compared with $1.02 billion during the first quarter of 2007. That decline included a 38% drop in U.S. demand, Amgen reported.

First-quarter Epogen sales fell 11% to $554 million compared with $625 million during the same quarter a year earlier.

Total product sales were $3.54 billion, off about 1% compared with last year’s first quarter, the company said.

Amgen executives credited previously announced cost-cutting measures with keeping profit steady despite the sales drop.