Summary
Amgen Inc. reported revenues of $3.76 billion for the second quarter of 2008, a slight increase from $3.73 billion in the same period last year. Net income for the quarter was $941 million, or $0.87 per diluted share, compared to $1.02 billion, or $0.90 per diluted share, in the second quarter of 2007. The decrease in net income and EPS is primarily attributable to a higher effective tax rate in the current year, stemming from the expiration of the federal research and experimentation tax credit and the favorable resolution of a federal tax examination in the prior year. The company's balance sheet showed a healthy cash position, with cash and cash equivalents and marketable securities totaling $8.5 billion as of June 30, 2008, up from $7.2 billion at the end of 2007. Total debt stood at $11.2 billion. The company continued its share repurchase program, spending $1.5 billion in the first half of 2008.
Financial Highlights
23 data points| Revenue | $3.76B |
| SG&A Expenses | $904.00M |
| Operating Expenses | $2.58B |
| Operating Income | $1.18B |
| Interest Expense | $137.00M |
| Net Income | $906.00M |
| EPS (Basic) | $0.84 |
| EPS (Diluted) | $0.84 |
| Shares Outstanding (Basic) | 1.08B |
| Shares Outstanding (Diluted) | 1.08B |
Key Highlights
- 1Product sales increased slightly to $3.69 billion for Q2 2008, driven by growth in Neulasta®/NEUPOGEN® and ENBREL, partially offsetting a significant decline in U.S. Aranesp® sales.
- 2Net income for Q2 2008 was $941 million, a decrease from $1.02 billion in Q2 2007, impacted by a higher effective tax rate.
- 3Diluted EPS was $0.87 for Q2 2008, down from $0.90 in the prior year's comparable quarter.
- 4Cash, cash equivalents, and marketable securities increased to $8.48 billion as of June 30, 2008.
- 5The company incurred $773 million in restructuring charges through June 30, 2008, as part of a plan announced in August 2007 to improve its cost structure.
- 6Amgen settled antitrust litigation with Ortho Biotech for $200 million.
- 7The company continues to face challenges with its erythropoiesis-stimulating agent (ESA) products, Aranesp® and EPOGEN®, due to regulatory and reimbursement developments, leading to decreased sales, particularly in the U.S. supportive cancer care setting.