06:51 AM EDT, 08/07/2024 (MT Newswires) -- Amgen ( AMGN ) tightened its full-year earnings outlook as the company reported lower-than-expected second-quarter profit amid higher operating expenses.

The biopharmaceutical company now anticipates per-share adjusted earnings to be in a range of $19.10 to $20.10 in 2024, compared with its prior forecast of $19 to $20.20. The consensus on Capital IQ is for normalized EPS of $19.50. The stock was down 4.1% in Wednesday's premarket activity.

Adjusted research and development costs are expected to rise by "more than 25%" year over year versus the previous guidance for a roughly 25% increase, as the company makes further investments to support multiple late-stage studies, Chief Financial Officer Peter Griffith said during an earnings call late Tuesday, according to a Capital IQ transcript.

Amgen ( AMGN ) now estimates capital expenditures of $1.3 billion this year, up from the prior outlook of $1.1 billion to $1.2 billion, as it launched initiatives to further expand manufacturing capacity for its obesity drug candidate MariTide, Griffith said on the call.

Revenue is set to come in between $32.8 billion and $33.8 billion in 2024, reflecting a higher bottom end than the prior forecast's $32.5 billion estimate. The Street is looking for revenue of $33.15 billion.

For the quarter ended June 30, Amgen's ( AMGN ) adjusted EPS decreased to $4.97 from $5 the year before, which was the Street's view for the most recent quarter. The company attributed the decline in profit to higher operating costs, including incremental expenses tied to the Horizon Therapeutics acquisition completed last year, and interest expense. Revenue advanced 20% year over year to $8.39 billion, just ahead of analysts' $8.35 billion estimate.

Total product sales climbed 20% to $8.04 billion buoyed by a 26% jump in volume growth, partially offset by a 3% decline in net selling price, according to the company. Revenue from the firm's cholesterol medicine Repatha grew 25% year over year, while osteoporosis drugs Prolia and Evenity inclined 13% and 39%, respectively. Sales from rheumatoid arthritis treatment Enbrel dropped 15%, while metastatic colorectal cancer drug Mvasi fell 20%.

"With a strong, balanced portfolio of in-market products and a rapidly advancing pipeline of innovative medicines, we are confident in our ability to deliver attractive long-term growth," Chief Executive Robert Bradway said in a statement.

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