Amgen Inc.’s second-quarter net income fell 3 percent, as the biotech sank money into clinical trials and product launches. The adjusted results exceeded Wall Street expectations.

The Thousand Oaks company on Friday reported net income of $1.17 billion ($1.25 a share), compared with $1.2 billion ($1.25 a share) a year earlier. The company, which has been using its cash to buy back shares, had fewer shares outstanding than in the year-earlier period. Revenue rose 4 percent $3.96 billion.

Excluding costs related to acquisitions and stock option expenses, adjusted earnings were $1.37 a share. Analysts surveyed by Thomson Reuters expected adjusted per-share profit of $1.28 on revenue of $3.78 billion.

Total product revenue was up 8 percent to $3.89 billion, but revenue from its oldest product, the anemia drug Epogen, fell 17 percent to $543 million. Sales of Aranesp, a newer anemia drug that has been hurt by safety concerns, fell 3 percent to $585 million.

Research and development costs jumped 26 percent to $808 million as the company completes late-stage clinical trials for drugs in its pipeline. Selling, general and administrative costs rose 15 percent to $1.11 billion. Amgen said that figure included a $47 million federal excise fee related to the U.S. health care overhaul.

Amgen said it now expects full-year net income and revenue to be at the upper end of previous guidance, with earnings ranging from $5 to $5.20 per share on revenue of between $15.1 billion and $15.5 billion.

“Our business has momentum,” Chief Executive Kevin Sharer said in a statement.

Shares closed up $1.27, or 2.4 percent, to $54.70 on the Nasdaq.