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Friday, Mar 29, 2024

Restructuring Costs Hurt Amgen Profits

Write offs related to restructuring and the acquisition of two pharmaceutical companies led net income to plummet by 82 percent for bio-tech giant Amgen. The Thousand Oaks-based company reported a net income of $201 million, or $0.18 per diluted share, on revenues of $3.6 billion for the third quarter ending Sept. 30. That is a steep drop from the $1.1 billion, or $0.94 per diluted share, on revenues of $3.6 billion for the same period in 2006. The company began a restructuring plan that includes layoffs and write offs on inventory after an announcement in the change of reimbursement for its anemia drug Aranesp. Worldwide sales of the drug dropped by 23 percent for the third quarter to $818 million, principally driven by lower sales in the U.S. Sales topped $1 billion for the same period in 2006. Restructuring charges in the third quarter added up to $582 million, including closing a clinical manufacturing facility at its Valley campus and indefinitely postponing a manufacturing facility in Ireland. The total restructuring costs are expected to be between $775 million and $850 million. The remaining costs will be incurred in the fourth quarter and in 2008.

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