Boston, MA 04/24/2014 (wallstreetpr) – Amgen, Inc. (NASDAQ:AMGN) failed to meet the market expectations on its earnings in the first quarter 2014. The revenues didn’t come in line with as per market expectations. The main reason for the fall in revenues is the lower Enbrel Sales. The company raises prices of Enbrel in January and therefore, retailers buy Enbrel in December itself. The company calls the fall in sales of Enbrel as a seasonal head wind. The results were taken negatively by the investors. It dropped more than 5% on intraday basis. Amgen’s stock has hardly gained 1% in last one year.
The lower revenues
Amgen is the largest biotechnology company of world in terms of revenue. Amgen, Inc. (NASDAQ:AMGN) reported the first quarter revenue at $4.52 billion which is a 6.6% increase on yearly basis. The analysts expected the revenues to come at $4.75 billion. Most of the analysts were expecting a better figure. Analyst projected the sale of Enbrel at $1.11 billion. However, it came at $988 million. It was a steep decline of 5%. The lower unit demands resulted in lower sales of Enbrel. Enbrel is the top selling drug of Amgen. It is one of the most sought medicines for Arthritis.
The yearly forecast
Amgen main strength is Enbrel and the other anemia medicines led by Neulasta. The company is now taking necessary steps for the expansion of its portfolio of products. It is looking to follow the strategies of its peers to look beyond the obvious. Amgen is still firm on its yearly forecast of its revenues that is made earlier. It expects to post revenue of $19.2 billion to $19.6 billion in year 2014. It expects the EPS excluding one time items to come in the range of $7.90 to $8.20. Amgen, Inc. (NASDAQ:AMGN) is optimistic to attain the targets of the year.
