10-QPeriod: Q2 FY2001

AMGEN INC Quarterly Report for Q2 Ended Jun 30, 2001

Filed July 27, 2001For Securities:AMGN

Summary

Amgen Inc. reported solid financial results for the second quarter and first half of 2001, demonstrating continued revenue growth and profitability. Total revenues for the three months ended June 30, 2001, reached $986.7 million, an increase of 8% year-over-year, while net income rose to $321.9 million. For the six-month period, total revenues were $1.89 billion, up 9% from the prior year, with net income growing to $626.8 million. This growth was primarily driven by strong performance in its key products, EPOGEN® and NEUPOGEN®, with combined sales showing healthy increases. The company also reported a significant increase in its cash, cash equivalents, and marketable securities, indicating a strong liquidity position and a robust balance sheet.

Key Highlights

  • 1Total revenues for Q2 2001 increased by 8% to $986.7 million compared to $914.4 million in Q2 2000.
  • 2Net income for Q2 2001 increased by 6.4% to $321.9 million ($0.30/share diluted) from $302.6 million ($0.28/share diluted) in Q2 2000.
  • 3For the six months ended June 30, 2001, total revenues grew 9% to $1.89 billion, and net income increased 10% to $626.8 million ($0.58/share diluted).
  • 4Product sales, led by EPOGEN® and NEUPOGEN®, saw a 6% increase for the quarter and a 10% increase for the first half of the year.
  • 5The company's cash, cash equivalents, and marketable securities position strengthened significantly, reaching $2.47 billion as of June 30, 2001, up from $2.03 billion at year-end 2000.
  • 6Amgen continues its share repurchase program, with $1.83 billion remaining authorized for repurchases through December 31, 2002.
  • 7The company's effective tax rate increased to 33.7% for the quarter and 33.8% for the year-to-date, compared to 31.2% and 31.0% respectively in the prior year.

Frequently Asked Questions

Amgen's primary revenue drivers were its key products, EPOGEN® (Epoetin alfa) and NEUPOGEN® (Filgrastim). Combined sales for EPOGEN® and ARANESP™ (darbepoetin alfa, recently launched in the EU) increased by 5% for the quarter, while NEUPOGEN® sales grew by 10%.

Amgen's liquidity has improved. As of June 30, 2001, the company held $2.47 billion in cash, cash equivalents, and marketable securities, a notable increase from $2.03 billion at the end of 2000. Operating activities continue to be the primary source of cash generation.

For its anemia business (EPOGEN®/ARANESP™), Amgen expects combined 2001 sales growth to be in the low-double digits over 2000 EPOGEN® sales, a slight reduction from previous guidance, due to a longer than anticipated FDA review for ARANESP™. NEUPOGEN® sales growth is expected to remain in the high-single digits for 2001.

Amgen is involved in an arbitration with Johnson & Johnson regarding alleged sales of PROCRIT® into Amgen's exclusive dialysis market, with a trial date set for September 2001. The company believes the outcome will not materially adversely affect its financial statements. Additionally, Praecis Pharmaceuticals received a letter from the FDA indicating inadequacy for approval for Plenaxis™ (abarelix depot), with Amgen believing the ultimate resolution will not have a material adverse effect.