01—Abstract
Summary
Summary of the 10-K filed February 14, 2025. Cited figures are marked; the original filing is the authoritative source.
Amgen's FY2024 10-K (filed February 14, 2025) shows a company whose top line grew strongly but whose profitability fell sharply.
Total revenues rose 19% to $33.4 billiona, driven by product sales of $32.0 billion, with volume growth of 23% offsetting a 2% decline in net selling price. The Horizon Therapeutics acquisition (closed October 2023) contributed $4.2 billion of product sales in 2024, and new launches such as TEZSPIRE, BLINCYTO, TEPEZZA, and Repatha grew rapidly. However, GAAP net income fell 39% to $4.1 billion and diluted EPS fell to $7.56 from $12.49, pressured by higher cost of sales (38.5% of revenue, up from 30.0%) driven by amortization of Horizon intangibles and inventory step-up, along with higher interest expense ($3.2 billion) and unrealized losses on equity investments.
The outlook carries clear headwinds. Prolia and XGEVA face biosimilar competition after their RANKL patents expired in February 2025 in the U.S., and ENBREL's Medicare price set by CMS takes effect in 2026, with Otezla selected for price setting in 2027. Management also flags continued payer consolidation, 340B expansion, and state-level PDAB actions as pressures on net pricing.
Balance-sheet leverage remains significant, with roughly $60.1 billionb of total debt against $5.9 billion of stockholders' equity, though operating cash flow of $11.5 billion and a $2.38 quarterly dividend (up 6%) signal continued capacity to service obligations. Pipeline catalysts include MariTide (obesity, up to ~20% weight loss at 52 weeks in Phase 2), UPLIZNA (IgG4-RD PDUFA April 3, 2025), and rocatinlimab in atopic dermatitis. Material legal and tax risks remain unresolved.
The IRS transfer-pricing dispute covering 2010–2015 seeks roughly $3.6 billionc plus interest for 2010–2012 and $5.1 billion plus about $2.0 billion in penalties for 2013–2015, with a Tax Court decision not expected before 2026. Several biosimilar patent suits over denosumab and aflibercept are ongoing, and securities and derivative litigation tied to the tax disclosures continues.
02—Key points
Key Highlights
- Total revenues grew 19% to $33.4B in 2024, with product sales up 19% to $32.0B, driven by 23% volume growth partially offset by a 2% decline in net selling price.
- GAAP net income fell 39% to $4.09B and diluted EPS fell to $7.56 (from $12.49), reflecting Horizon-related amortization and inventory step-up that pushed cost of sales to 38.5% of revenue (from 30.0%).
- Horizon acquisition (closed October 2023) contributed $4.2B in 2024 product sales, including TEPEZZA ($1.85B) and KRYSTEXXA ($1.19B); new launches such as BLINCYTO ($1.22B, +41%), TEZSPIRE ($972M, +71%), and Repatha ($2.22B, +36%) drove growth.
- Biosimilar and pricing pressure is intensifying: RANKL patents for Prolia/XGEVA expired in February 2025 in the U.S., ENBREL's Medicare Part D price set by CMS starts January 1, 2026, and Otezla is selected for Medicare price setting from 2027.
- Leverage remains high at about $60.1B of total debt against $5.9B of stockholders' equity; operating cash flow was $11.5B, and the quarterly dividend was raised 6% to $2.38 for Q1 2025.
- IRS transfer-pricing dispute (2010–2015) seeks roughly $3.6B plus interest for 2010–2012 and $5.1B plus about $2.0B in penalties for 2013–2015; Tax Court trial concluded January 2025 with a decision not expected before 2026.
- Pipeline catalysts include MariTide (up to ~20% average weight loss at week 52 in Phase 2), UPLIZNA for IgG4-RD (PDUFA date April 3, 2025), and positive Phase 3 readouts for rocatinlimab and TEZSPIRE in CRSwNP.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Amgen Inc kept $0.12.
- Revenue$33.42B100.0%
- Cost of revenue−$12.86B38.5%
- Gross profit$20.57B61.5%
- Operating costs−$13.31B39.8%
- Operating income$7.26B21.7%
- Interest, other & tax−$3.17B9.5%
- Net income$4.09B12.2%
Where FY2024 revenue went
$33.42B- Cost of revenue: $12.86B, 38% of revenue
- SG&A: $7.10B, 21% of revenue
- Other operating costs: $6.21B, 19% of revenue
- Net income: $4.09B, 12% of revenue
- Interest, other & tax: $3.17B, 9.5% of revenue
Kept 12% as net incomeNet income $4.09B · 12%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 14, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $33.42B$28.19B | +18.6% |
| Cost of Revenue | $12.86B$8.45B | +52.1% |
| Gross Profit | $20.57B$19.74B | +4.2% |
| SG&A Expenses | $7.10B$6.18B | +14.8% |
| Operating Expenses | $26.17B$20.29B | +28.9% |
| Operating Income | $7.26B$7.90B | −8.1% |
| Interest Expense | $3.15B$2.88B | +9.7% |
| Net Income | $4.09B$6.72B | −39.1% |
| EPS (Basic) | $7.62$12.56 | −39.3% |
| EPS (Diluted) | $7.56$12.49 | −39.5% |
| Shares Outstanding (Basic) | 537.00M535.00M | +0.4% |
| Shares Outstanding (Diluted) | 541.00M538.00M | +0.6% |
05—Questions
Frequently Asked Questions
Why did Amgen's net income and EPS decline sharply in 2024 despite revenue growth of 19%?
The decline was driven mainly by cost of sales rising to 38.5% of total revenues (from 30.0%), reflecting about $4.8B of intangible amortization (largely Horizon-related) and $2.4B of inventory step-up amortization from acquired inventory. Interest expense also rose to $3.2B, and other income fell from $2.8B to $0.5B because 2023 included large BeiGene fair-value gains that did not recur. The effective tax rate fell to 11.3%, which partially offset these pressures.
How much revenue risk do Prolia and XGEVA face from biosimilar competition?
Prolia ($4.37B) and XGEVA ($2.23B) together generated about $6.6B in 2024 product sales, roughly 21% of total product sales. Their U.S. RANKL patents expired in February 2025, and management expects sales erosion from biosimilars in 2025. Amgen has obtained consent judgments and injunctions against some denosumab biosimilar entrants, with certain injunctions running to dates in 2025, but other biosimilar suits remain pending.
What is the main risk from the IRS dispute, and when could it be resolved?
The IRS asserts that Amgen under-allocated profits to its U.S. operations relative to Puerto Rico for 2010–2015, seeking additional federal tax of about $3.6B for 2010–2012 and $5.1B for 2013–2015, plus interest and roughly $2.0B of penalties for the later period. Repatriation tax previously accrued could offset up to about $3.1B. The Tax Court trial ended January 17, 2025, and a decision is expected no earlier than 2026. The company believes the IRS positions are without merit but acknowledges that an adverse outcome could be substantially greater than amounts accrued.
How will Medicare drug price setting affect Amgen's key products?
ENBREL was among the first ten drugs selected for Medicare price setting, and CMS set a significantly lower Part D price effective January 1, 2026, which management expects to negatively affect ENBREL's Medicare profitability; ENBREL sales were $3.3B in 2024, down 10%. Otezla was selected in January 2025 for price setting effective January 1, 2027. Management expects the impact of IRA price setting to grow through the end of the decade and says it could have a material adverse effect on sales and results.
What are the most important pipeline catalysts for investors to watch?
Key near-term items include the UPLIZNA IgG4-related disease FDA decision with a PDUFA date of April 3, 2025, following positive Phase 3 data showing an 87% reduction in flare risk; the Phase 3 program for rocatinlimab in atopic dermatitis, which met its co-primary endpoints; and TEZSPIRE's positive Phase 3 WAYPOINT results in CRSwNP. Longer-term, MariTide (maridebart cafraglutide) showed up to ~20% average weight loss at 52 weeks in Phase 2 with GI-related adverse events as the most common, and its progression into Phase 3 is a major value driver.
06—Continue