Amgen Inc. reported a 3% decline in fourth-quarter 2017 profit as sales declined 2% from the year-ago period.
Fourth-quarter 2017 non-GAAP net income was $2.10 billion, or $2.89 per share, versus $2.16 billion, or $2.89 per share, in the fourth quarter of 2016.
The S&P Capital IQ consensus normalized EPS estimate for the quarter was $3.03.
GAAP net loss totaled $4.26 billion, or $5.89 per share, versus net income of $1.94 billion, or $2.59 per share, in the prior-year period. The results include a $6.1 billion charge related to the new U.S. tax law.
GAAP operating income for the quarter fell 10% to $2.25 billion, versus $2.49 billion in the fourth quarter of 2016. Non-GAAP operating income dropped 11% to $2.56 billion from $2.86 billion in the year-ago quarter.
Revenue for the quarter dropped 3% to $5.80 billion, from $5.97 billion in the fourth quarter of 2016.
Repatha sales increased 69% to $98 million for the fourth quarter driven by higher unit demand. Meanwhile, Blincyto recorded $46 million in sales, up 59% from the year-ago quarter's $29 million due to higher unit demand.
Sales of osteoporosis drug Prolia grew 24% year over year to $574 million from $463 million. Kyprolis sales also rose 24% for the quarter due to higher unit demand.
Enbrel sales fell 13% to $1.42 billion due to lower demand and net selling price. Sales of Neupogen slipped 27% to $126 million, compared to $173 million in the previous year, due to lower unit demand. Epogen sales fell 15%, driven primarily by lower net selling price.
Full-year results
For full-year 2017, the biotechnology company's non-GAAP net income was $9.25 billion, or $12.58 per share, up from $8.79 billion, or $11.65 per share, in 2016. On a GAAP basis, the company reported net income of $1.98 billion, or $2.69 per share, compared to $7.72 billion, or $10.24 per share, in the previous year.
The S&P Capital IQ consensus normalized EPS estimate for 2017 was $12.70.
Full-year revenue slipped 1% to $22.85 billion from $23 billion in 2016.
Outlook for 2018
For full-year 2018, Amgen expects to post $12.60 to $13.70 in non-GAAP EPS. On a GAAP basis, EPS is expected to be in the range of $11.18 to $12.36.
The S&P Capital IQ consensus normalized EPS estimate for 2018 is $12.71.
Capital expenditure is expected to be about $750 million. The company is also targeting total revenue between $21.8 billion and $22.8 billion.
Spending expectations
The California-based drugmaker plans to invest about $3.5 billion in capital expenditures over the next five years, with roughly 75% of that investment in the U.S. Amgen will utilize $300 million to build a new manufacturing plant in the U.S.
Location of the plant is expected to be announced in the second quarter.
The company is also increasing the size of the Amgen Ventures fund, providing up to $300 million of growth capital for early-stage, innovative biotechnology companies in the U.S.
Amgen's board authorized an additional $10 billion in share repurchases. This authorization is in addition to the existing $4.4 billion in share repurchase authorization as of Dec. 31, 2017.
