10-KPeriod: FY2018

AMGEN INC Annual Report, Year Ended Dec 31, 2018

Filed February 13, 2019For Securities:AMGN

Summary

Amgen Inc. reported strong financial performance in its 2018 10-K filing, with total revenues reaching $23.7 billion and net income of $8.4 billion. The company saw growth driven by key products like Prolia®, XGEVA®, Repatha®, and KYPROLIS®, alongside successful launches of new medicines such as Aimovig® and Parsabiv®. Amgen continues to invest heavily in research and development, with $3.7 billion spent in 2018, focusing on innovative therapies for serious illnesses and leveraging advancements in human genetics. The company is also actively managing its product portfolio by expanding indications for existing drugs and developing biosimilar versions of key biologics. Challenges include increasing competition from biosimilars and generics, pricing pressures from payers, and ongoing patent litigations, which are carefully monitored and managed.

Financial Highlights

55 data points
Beta

Revenue

$23.75B

82.7% Gross Margin

Net Income

$8.39B

35.3% Net Margin

EPS (Diluted)

$12.62

Total Assets

$66.42B

Cash & Equivalents

$6.95B

Free Cash Flow

$10.56B

Financial Statements
Beta
Revenue$23.75B
Cost of Revenue$4.10B
Gross Profit$19.65B
SG&A Expenses$5.33B
Operating Expenses$13.48B
Operating Income$10.26B
Interest Expense$1.39B
Net Income$8.39B
EPS (Basic)$12.70
EPS (Diluted)$12.62
Shares Outstanding (Basic)661.00M
Shares Outstanding (Diluted)665.00M

Key Highlights

  • 1Total revenues increased by 4% to $23.7 billion, with product sales growing 3% to $22.5 billion, primarily driven by Prolia®, XGEVA®, Repatha®, and KYPROLIS®.
  • 2Net income rose significantly to $8.4 billion from $2.0 billion in the prior year, with diluted EPS increasing to $12.62.
  • 3Research and Development (R&D) expenses were $3.7 billion, reflecting continued investment in pipeline advancement and innovation.
  • 4Amgen made significant progress in its biosimilar portfolio, launching AMGEVITATM and KANJINTITM in Europe and filing regulatory submissions for ABP 710.
  • 5The company returned substantial capital to shareholders through dividends ($3.5 billion) and stock repurchases ($17.9 billion in 2018).
  • 6New indications were secured for Repatha® (cardiovascular risk reduction in China) and Prolia® (glucocorticoid-induced osteoporosis).
  • 7Amgen is investing in next-generation biomanufacturing capabilities, with a new plant breaking ground in Rhode Island and an existing facility in Singapore in use for commercial production.

Frequently Asked Questions

Amgen's revenue growth in 2018 was primarily driven by its key products Prolia®, XGEVA®, Repatha®, and KYPROLIS®. The company also saw contributions from newly launched products like Aimovig® and Parsabiv®.

Amgen is actively developing and commercializing its own biosimilar products, such as AMGEVITATM and KANJINTITM, which have launched in Europe. The company is also investing in its R&D pipeline to maintain a competitive edge and is engaged in patent litigation to protect its existing products from biosimilar and generic competition.

Amgen's strategy for future growth involves continued significant investment in R&D to discover and develop innovative therapies, expanding the indications for its existing products, and building a strong biosimilar portfolio. The company also focuses on expanding its global reach and investing in advanced manufacturing capabilities.

Key risks identified include increasing competition from biosimilars and generics, pricing and reimbursement pressures from third-party payers, patent expirations and ongoing patent litigation, regulatory scrutiny, the inherent uncertainties in drug development, and potential manufacturing or supply chain disruptions.