Stock Market Update - Tue Apr 24 08:19:10 EDT 2007

Amgen (AMGN 62.19) reported first quarter results in line with analysts' expectations.  However, the company said it expects 2007 to be a challenging year, with full-year earnings per share coming in at the low end of its previously stated range, and it withdrew its revenue guidance due to recent safety concerns for its top-selling anemia drugs, Arnesp and Epogen, and uncertainties regarding growth. 

For the quarter, Amgen posted adjusted earnings of $1.27 billion, or $1.08 per share, on sales of $3.69 billion.  That met analysts' expectations for earnings of $1.08 per share on $3.72 billion in revenue.  Sales of Anemia drugs Arnesp and Epogen increased 14.6%  to $1.02 billion and 3% to $625 million, respectively.  U.S. Arnesp sales increased at a slower rate of 10%, reflecting customer reaction to label changes after studies showed increased risks for patients using the drug.

For 2007, Amgen sees earnings at the low end of its previously stated guidance of $4.30 to $4.50 per share.  The company's revenue guidance is up for review, and it plans to cut costs to offset any impact on earnings. 

With the impact of recent safety concerns and slower growth already anticipated by investors, shares of Amgen were indicated slightly higher in pre-market activity.  The stock is off about 7% over the past year. 

--Richard Jahnke, Briefing.com