WHAT TO WATCH FOR:
Amgen CEO Kevin Sharer, who steps down at the company's annual meeting on May 23, will note a flurry of deals.
In March, Amgen paid $1.16 billion for cancer therapy developer Micromet Inc., which is studying an experimental antibody-based drug called blinatumomab.
Amgen, based in Thousand Oaks, Calif., has since announced a smaller acquisition and an important research collaboration.
Amgen is partnering with British drugmaker AstraZeneca PLC to jointly develop five Amgen antibodies for potential treatments for inflammatory diseases, including asthma, psoriasis and ulcerative colitis. Amgen will get $50 million, AstraZeneca will pay for about 65 percent of research costs until 2014 and after that the companies will split costs and any eventual revenue.
Last week, Amgen said it will pay $315 million to buy KAI Pharmaceuticals, which is developing a drug to treat a common side effect of kidney disease in which blood levels of calcium and phosphorous get too high. KAI-416 is in mid-stage patient testing.
Company executives will discuss sales trends for Amgen's two newest drugs, different doses of the same active ingredient: Prolia for osteoporosis and Xgeva for preventing fractures in cancerous bones. Analysts expect the injectable drugs to bring in about $250 million combined, up from $28 million in the fourth quarter.
But there's a good chance the Food and Drug Administration next month will vote not to approve a new use for Xgeva, for preventing cancer from spreading from a man's prostate to bone. An FDA advisory panel in February voted 12-1 against recommending that.
Executives also will discuss research progress.
Last month, Amgen published mid-stage results on experimental drug brodalumab showing the antibody-based drug helped clear up the skin of patients with severe plaque psoriasis. Also in March, it presented promising early data on a drug now in mid-stage testing, AMG 145, that reduced bad cholesterol even more in patients already taking another type of cholesterol drug, statins such as Lipitor. And it's just started late-stage testing of a new treatment for postmenopausal osteoporosis, AMG 785.
The company may note plans to give an update on Amgen cancer compounds in early development at a June medical meeting.
Analysts may ask how much changes in Amgen's executive suite will affect operations and strategy.
WHY IT MATTERS:
Company leadership is in flux, with Sharer about to be replaced by Chief Operating Officer Bob Bradway on May 23.
In February, Dr. Michael Severino was promoted to chief medical officer and senior vice president for global development. He replaced Dr. Sean Harper, who was promoted to executive vice president for research and development. Harper replaced longtime R&D head Roger Perlmutter, who retired.
While Amgen has some promising medicines in its pipeline, safety concerns in recent quarters have led some doctors to write fewer prescriptions for two big sellers, anemia treatments Aranesp and Epogen.
And analysts and investors are wondering when the current biotech bull market will run out of steam.
Cowen and Company analysts this week noted Amgen's share price jumped 6 percent in the first quarter and that Amgen has been maintaining revenue partly with first-quarter price hikes for several drugs, including a 7 percent boost for No. 2 seller Enbrel, for rheumatoid arthritis and psoriasis.
Amgen has been trying to keep investors happy. In January, it said it would purchase up to $5 billion of its shares in a new buyback program, after buying back $8.3 billion in shares last year. Amgen also introduced a dividend last September and increased it in December.
WHAT'S EXPECTED:
Analysts polled by FactSet, on average, expect earnings per share of $1.46, excluding one-time items, and sales of $3.94 billion.
LAST YEAR'S QUARTER:
Amgen reported profit of $1.34 per share, excluding one-time charges, on revenue of $3.71 billion.
Source : http://www.businessweek.com
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