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Amgen posts 13% gain
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July 26, 2000: 5:10 p.m. ET
Biotechnology bellwether reports better-than-expected 2Q profit
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NEW YORK (CNNfn) - Biotechnology company Amgen Inc. reported a 13 percent increase in second-quarter profit Wednesday, slightly beating analysts' expectations as sales of its blockbuster anemia drug Epogen powered the gains.
The Thousand Oaks, Calif.-based drug maker earned $303 million, or 28 cents per diluted share, from $268 million, or 25 cents per share, a year earlier.
 Wall Street had forecast a profit of 27 cents per share, according to the First Call consensus estimate of analysts.
Revenue rose 11 percent to $914 million. Sales of Epogen, the company's top-selling drug, increased 15 percent to $493 million.
Amgen is locked in a court battle to retain patent protection for the drug, which treats anemia in dialysis patients. For the full year, Epogen sales growth should be "in the low teens," the company said.
Sales of cancer drug Neupogen edged up 2 percent to $310 million. The company blamed foreign exchange fluctuations and low inventory levels at major wholesalers for the small increase. A realignment of its sales staff also cut into the drug's sales, the company said.
If the dollar remains at current foreign exchange levels, Neupogen sales likely will be flat over last year's results, Amgen said.
Amgen (AMGN: Research, Estimates) shares closed down 4-1/4, or nearly 6 percent, to 69-3/8 in Nasdaq trading prior to the release of the results. After the report was released, shares lost another 3/8 to 69 in after-hours activity.
The company reiterated that it expects to launch four late-stage drugs over the next few years, including treatments for rheumatoid arthritis, cancer and Parkinson's disease.
"We are balancing the need for continued investment to ensure the success of these new products while at the same time delivering continued earnings growth," said Kevin Sharer, Amgen's chief executive officer and president.
For the first six months of the year, net income totaled $568.8 million, or 52 cents per diluted share, from $514.8 million, or 48 cents per share, in the year-earlier period.
First-half revenue totaled $1.5 billion, from $1.43 billion in the prior period.
The company said it continues to expect its earnings per share for the year to be in a range of $1.06 to $1.08, excluding one-time items. 
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Amgen
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