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Amgen beats 3Q estimates while shrinking workforce

By WTOP Staff

MATTHEW PERRONE
AP Business Writer

WASHINGTON (AP) — Amgen said Monday that its earnings fell in the third quarter on charges from an ongoing restructuring effort, but the biotech drugmaker’s adjusted results still surpassed Wall Street expectations.

The better-than-expected quarter led the Thousand Oaks, California-based company to raise its full-year earnings outlook.

Amgen earned $1.24 billion, or $1.61 per share, down from $1.37 billion, or $1.79 per share, in the prior-year period. Excluding one-time charges associated with job cuts and closing locations, the company would have earned $2.30 per share.

That surpassed Wall Street expectations, with analysts surveyed by Zacks Investment Research calling for earnings of $2.11 per share, on average.

The world’s largest biotech drugmaker posted revenue growth of 6 percent to $5.03 billion in the period, also exceeding Street forecasts. Analysts expected $4.92 billion, according to Zacks.

In July Amgen announced it would lay off 12 to 15 percent of its worldwide workforce and close four sites to free up money needed for business investments, including marketing and other expenses for launching new drugs. The company said Monday it plans to cut 2,925 jobs by the end of 2015 as part of its effort to streamline operations, reduce management layers and shrink its real estate footprint.

The company’s results were weighed down by $376 million in pretax restructuring costs for the quarter, and Amgen estimates it will spend $150 million on similar efforts in the fourth quarter. The company expects the total restructuring plan to result in charges between $835 million and $885 million. By 2016 Amgen estimates the changes will result in $700 million in pretax savings, which company executives plan to reinvest to support product launches.

Among its top sellers, sales of anemia drugs Neulasta and Neupogen slid 7 percent to $1.49 billion while sales of osteoporosis drug Prolia jumped 43 percent to $255 million.

Sales of the specialty cancer drug Kyprolis rose 21 percent to $94 million compared to the second quarter of 2014. Amgen acquired the drug last year as part of its $9.7 billion purchase of Onyx Pharmaceuticals. That deal was part of Amgen’s strategy to expand beyond its medicines used for easing anemia and side effects of some cancer treatments and become a major player in the market for pricey cancer drugs.

Amgen is awaiting U.S. approval for its chronic heart failure medicine, ivabradine, and its advanced melanoma drug, talimogene laherparepvec. The company hasn’t announced brand names for either one.

Amgen raised its adjusted earnings per share estimate to between $8.45 and $8.55 per share, up from its July forecast of $8.20 to $8.40 per share. The company now expects full-year revenue of $19.8 billion to $20 billion, up from $19.5 billion to $19.7 billion.

Analysts expect annual earnings per share of $8.40 on revenue of $19.71 billion, according to FactSet.

Amgen Inc. shares rose $1.25 to $149.45 in afterhours trading.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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