10-KPeriod: FY2016

AMGEN INC Annual Report, Year Ended Dec 31, 2016

Filed February 14, 2017For Securities:AMGN

Summary

Amgen Inc.'s 2016 10-K filing highlights a year of robust growth, with total revenues increasing by 6% to $22.99 billion and net income rising by 11% to $7.72 billion. This performance was driven by strong execution across its therapeutic areas, particularly in bone health, cardiovascular, and oncology, supported by solid net selling prices in the U.S. market. The company made significant strides in advancing its pipeline, with key developments including regulatory filings for EVENITY™ for osteoporosis and positive Phase 3 trial results for Repatha® in cardiovascular outcomes. Amgen also continued its strategic expansion into new global markets and invested in next-generation biomanufacturing. Despite a strong year, Amgen anticipates increased competition and pricing pressures in 2017, particularly from biosimilars, alongside ongoing regulatory scrutiny and evolving healthcare cost containment measures.

Financial Highlights

55 data points
Beta

Revenue

$22.99B

81.9% Gross Margin

Net Income

$7.72B

33.6% Net Margin

EPS (Diluted)

$10.24

Total Assets

$77.63B

Cash & Equivalents

$3.24B

Free Cash Flow

$9.62B

Financial Statements
Beta
Revenue$22.99B
Cost of Revenue$4.16B
Gross Profit$18.83B
SG&A Expenses$5.06B
Operating Expenses$13.20B
Operating Income$9.79B
Interest Expense$1.26B
Net Income$7.72B
EPS (Basic)$10.32
EPS (Diluted)$10.24
Shares Outstanding (Basic)748.00M
Shares Outstanding (Diluted)754.00M

Key Highlights

  • 1Total revenues grew 6% to $22.99 billion, with net income up 11% to $7.72 billion, and diluted EPS increased by 13% to $10.24 in 2016.
  • 2Key pipeline advancements include the U.S. regulatory filing for EVENITY™ and positive Phase 3 results for Repatha® in cardiovascular outcomes.
  • 3Amgen expanded its global reach with 94 country product launches.
  • 4Investments in next-generation biomanufacturing facilities, including a new Singapore facility, are expected to improve efficiency and lower costs.
  • 5The company returned significant capital to shareholders through a 27% increase in quarterly dividends and $3.0 billion in stock repurchases.
  • 6Amgen faces increasing competition from biosimilars, notably for Neulasta® and EPOGEN®, with patent expirations impacting sales of these established products.
  • 7The company anticipates a challenging 2017 due to intensifying competition, pricing pressures, and regulatory scrutiny.

Frequently Asked Questions

Amgen reported a 6% increase in total revenues to $22.99 billion and an 11% rise in net income to $7.72 billion. Diluted earnings per share (EPS) grew by 13% to $10.24, driven by higher revenues and operational efficiencies.

Key developments include the U.S. regulatory filing for EVENITY™ for osteoporosis treatment, positive Phase 3 trial results for Repatha® demonstrating cardiovascular benefits, and approvals for Parsabiv™ in the EU and US. The company also saw progress in its biosimilar program with the U.S. approval and EU submission for AMJEVITA™.

Amgen anticipates an increasingly challenging environment in 2017 due to intensifying competition, particularly from biosimilars impacting products like Neulasta® and EPOGEN®, and ongoing pricing pressures from third-party payers. Increased regulatory scrutiny and evolving healthcare policies are also cited as significant risks.

Amgen is investing in next-generation biomanufacturing, including a new facility in Singapore, to enhance efficiency and reduce costs. The company is also focusing on launching products in new global markets and advancing its R&D pipeline, alongside strategic acquisitions and collaborations.