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| 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.