10-KPeriod: FY2013

AMGEN INC Annual Report, Year Ended Dec 31, 2013

Filed February 24, 2014For Securities:AMGN

Summary

Amgen Inc. reported robust performance for the fiscal year 2013, characterized by strong revenue growth driven by key products and strategic acquisitions. The acquisition of Onyx Pharmaceuticals in October 2013 significantly expanded Amgen's oncology portfolio, notably with the addition of Kyprolis®. The company highlighted positive clinical trial results for promising pipeline candidates like evolocumab (AMG 145) for dyslipidemia and talimogene laherparepvec for melanoma, indicating a healthy future growth outlook. Despite facing increasing competition and patent expirations for some established products, Amgen maintained a strong financial position and continued its commitment to returning capital to shareholders through dividends and share repurchases. The company navigated a complex regulatory and reimbursement landscape, demonstrating resilience and strategic focus on innovation and market expansion.

Financial Highlights

55 data points
Beta

Revenue

$18.68B

82.1% Gross Margin

Net Income

$5.08B

27.2% Net Margin

EPS (Diluted)

$6.64

Total Assets

$66.13B

Cash & Equivalents

$3.81B

Free Cash Flow

$5.60B

Financial Statements
Beta
Revenue$18.68B
Cost of Revenue$3.35B
Gross Profit$15.33B
SG&A Expenses$5.18B
Operating Expenses$12.81B
Operating Income$5.87B
Interest Expense$1.02B
Net Income$5.08B
EPS (Basic)$6.75
EPS (Diluted)$6.64
Shares Outstanding (Basic)753.00M
Shares Outstanding (Diluted)765.00M

Key Highlights

  • 1Acquisition of Onyx Pharmaceuticals in October 2013, significantly bolstering the oncology portfolio with Kyprolis® and other assets.
  • 2Positive Phase 3 results for evolocumab (AMG 145) in five lipid-lowering studies, demonstrating its potential in cardiovascular health.
  • 3Phase 3 trial met primary endpoint for talimogene laherparepvec (oncolytic immunotherapy) in melanoma, showing promising durable response rates.
  • 4Secured U.S. commercial rights for ivabradine, a novel oral drug for chronic heart failure and angina.
  • 5Revenue growth of 8% driven by strong performance in key products such as Neulasta®/NEUPOGEN®, ENBREL®, XGEVA®/Prolia®, and Sensipar®/Mimpara®.
  • 6Continued return of capital to shareholders through increased quarterly dividends and ongoing share repurchase programs.
  • 7Commitment to R&D with $4.1 billion invested in 2013, focusing on pipeline development across oncology, inflammation, bone health, and cardiovascular areas.

Frequently Asked Questions

The most significant strategic move was the acquisition of Onyx Pharmaceuticals in October 2013. This acquisition significantly expanded Amgen's oncology franchise, adding the multiple myeloma treatment Kyprolis® and other promising assets.

Amgen is addressing competition and patent expirations by focusing on developing and advancing its pipeline of innovative new therapies, including biosimilars. They are also managing existing product lifecycles through strategic lifecycle management and emphasizing products with strong clinical profiles and market positions. The company is also actively monitoring and adapting to the evolving regulatory landscape for biosimilars.

Key growth drivers include the continued commercialization of recently acquired and in-licensed products like Kyprolis® and ivabradine, the successful development and launch of late-stage pipeline candidates such as evolocumab and romosozumab, expansion into emerging markets, and the potential growth from their biosimilar portfolio.

Amgen maintained strong operating results which generated significant cash flow. This allowed them to invest in R&D and strategic acquisitions while also returning capital to shareholders through increasing quarterly dividends and executing share repurchase programs. The company also managed its debt effectively and maintained access to capital markets.