Benzinga | Nov 3, 2021 09:15AM EDT

Amgen Q3 Earnings Saved By Higher Volumes Despite Pricing Pressure On Some Drugs

* Amgen Inc's (NASDAQ:AMGN) Q3 revenues increased 4% to $6.71 billion, slightly beating the consensus of $6.68 billion.

* The increase is driven by higher unit demand, partially offset by lower net selling prices.

* Adjusted EPS increased 11% to $4.67, ahead of the consensus estimate of $4.27.

* Net earnings fell 3% to $3.31 per share with a $400 million licensing-related expense from collaborating with Japan's Kyowa Kirin Co Ltd.

* Amgen said sales volume for Q3 rose 8%, but net selling prices fell 7% as competition, including from cheaper generics & biosimilars, pushed down prices for its arthritis, migraine, and infection-fighting drugs.

* Sales of arthritis drug Enbrel fell 3% from a year earlier to $1.29 billion. Sales of newer cancer drug Lumakras totaled $36 million for Q3.

* Cholesterol treatment Repatha saw sales jump of 33% Y/Y despite a lower net selling price, as volume growth surged, including a 64% jump in the U.S.

* Sales of psoriasis drug Otezla increased 13% despite lower prices as well. Amgen is preparing for the anticipated U.S. approval of the mild-to-moderate psoriasis indication.

* Guidance: Amgen slightly raised its FY21 adjusted EPS to $16.50 - $17.10 (consensus of $16.43) from a previous $16.00 to $17.00.

* The Company lowered the top end of its revenue forecast to $26.2 billion from a previous $26.6 billion.

* Price Action: AMGN shares are trading lower by 1.06% at $211.99 premarket on the last check Wednesday.