Despite positive 2nd quarter, Amgen readies layoffs

Amgen Inc. said last month it plans to reduce 12–15% of its global workforce, beginning in the fourth quarter of 2014 and continuing through 2015. The biotechnology company said it would reduce staff by 2,400–2,900, predominantly in the United States. Amgen currently employs approximately 20,000 staff members. As part of the layoffs, the company will close manufacturing facilities in Washington and Colorado and shrink its Thousand Oaks, Calif. campus. The company said it would use the savings derived form the reduced workforce to expand its R&D efforts.

Amgen reported the layoffs along with its earnings, showing that income for the second quarter of 2014 grew 26% to $1,823 million, compared to $1,444 million in the same quarter last year. Total revenues increased 11% to $5,180 million, compared to $4,679 million in the same quarter last year. Epogen (epoetin alfa) sales increased 2% year-over-year for the second quarter driven by price, offset partially by the prior year positive Medicaid rebate estimate adjustment. Unit demand continues to be relatively stable, the company said. Sensipar/Mimpara (cinacalcet) sales increased 15% year-over-year for the second quarter, driven primarily by higher unit demand growth across all regions and price increases in the United States, while Aranesp (darbepoetin alfa) sales decreased 1% year-over-year for the second quarter mainly due to the prior year positive Medicaid rebate estimate adjustment.