Early Access

10-KPeriod: FY2011

AMGEN INC Annual Report, Year Ended Dec 31, 2011

Filed February 29, 2012For Securities:AMGN

Summary

Amgen Inc. reported strong performance in its 2011 fiscal year, with total revenues reaching $15.58 billion, a 4% increase from the previous year, driven by robust sales of its key products like Neulasta®/NEUPOGEN®, Enbrel®, and other growing products such as Prolia® and XGEVA®. The company demonstrated a strong commitment to shareholder returns, initiating its first-ever quarterly cash dividends in 2011 and repurchasing approximately 15% of its outstanding stock for $8.3 billion. Amgen also made strategic acquisitions, including BioVex Group and Laboratório Químico Farmacêutico Bérgamo Ltda, to expand its pipeline and market reach. However, the company recorded a significant $780 million charge related to an agreement in principle to settle allegations concerning its sales and marketing practices. Looking ahead, Amgen faced ongoing challenges including increasing competition from biosimilars, patent expirations on key products, and evolving regulatory and reimbursement landscapes. Despite these headwinds, the company expressed confidence in its future growth opportunities driven by its late-stage pipeline and strategic business development initiatives.

Financial Statements
Beta
Revenue$15.58B
Cost of Revenue$2.71B
Gross Profit$12.87B
SG&A Expenses$4.50B
Operating Expenses$11.27B
Operating Income$4.31B
Interest Expense$610.00M
Net Income$3.68B
EPS (Basic)$4.07
EPS (Diluted)$4.04
Shares Outstanding (Basic)905.00M
Shares Outstanding (Diluted)912.00M

Key Highlights

  • 1Total revenues increased by 4% to $15.58 billion in 2011, with product sales driven by key products like Neulasta®/NEUPOGEN® and Enbrel®.
  • 2Amgen initiated quarterly cash dividends in 2011, paying out $500 million and increasing its quarterly dividend by 29% by year-end.
  • 3The company executed a significant share repurchase program, buying back approximately 15% of its outstanding stock for $8.3 billion.
  • 4Strategic acquisitions were made, including BioVex Group and Laboratório Químico Farmacêutico Bérgamo Ltda, to strengthen the product pipeline and market presence.
  • 5A $780 million charge was recorded in relation to an agreement in principle to settle allegations concerning sales and marketing practices.
  • 6Key products like Aranesp® and EPOGEN® experienced sales declines due to regulatory and reimbursement changes, including updated FDA label changes for ESAs.
  • 7The company highlighted strong growth for newer products like Prolia® and XGEVA®, with significant revenue contributions in their initial years of broader market availability.

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