What was the primary driver of the revenue decline in the first quarter of 2009?

The primary driver for the revenue decline was a decrease in product sales, down 8.4% to $3.24 billion. This was influenced by the ongoing global economic downturn, which affected patient spending and provider cost sensitivities, as well as specific product challenges such as the distribution model change for Enbrel and evolving regulatory scrutiny for ESA products like Aranesp® and Epogen®.

How did the adoption of new accounting standards affect the financial statements?

Amgen adopted new accounting standards for convertible debt instruments (FSP APB 14-1) effective January 1, 2009, retrospectively applied to prior periods. This change involved bifurcating convertible notes into debt and equity components, leading to a non-cash increase in interest expense due to the accretion of the debt component back to its principal amount. While it impacted reported net income and EPS, it did not affect cash flows from operations, investing, or financing activities.

What is Amgen's liquidity position at the end of the quarter?

Amgen maintained a strong liquidity position with $10.38 billion in cash, cash equivalents, and marketable securities as of March 31, 2009. This provided ample financial flexibility to meet working capital, capital expenditure, and debt service requirements.

Are there any significant legal or regulatory matters impacting Amgen?

The filing mentions ongoing legal proceedings and investigations, including those related to product liability, government inquiries into marketing practices, and patent litigation. Notably, there are multiple Qui Tam actions pending, alleging illegal marketing practices. While the company believes it is in compliance, these matters could potentially have a material adverse effect on financial results if adverse outcomes occur.

AMGN 10-Q Quarterly Report Q1 FY2009 — Revenue, Net Income, EPS

Summary

Amgen Inc. reported financial results for the first quarter of 2009, with total revenues of $3.31 billion, a decrease of 8.6% compared to the same period in 2008. This decline was primarily driven by lower product sales, which fell 8.4% to $3.24 billion, impacted by factors such as the continued economic downturn, changes in distribution models for key products like Enbrel, and increased competition. Net income for the quarter was $1.02 billion, down from $1.10 billion in the prior year, resulting in diluted earnings per share of $0.98, a decrease from $1.01 in Q1 2008. Despite the revenue challenges, Amgen maintained a strong cash position with $2.78 billion in cash and cash equivalents and $7.60 billion in marketable securities.

Financial Highlights

26 data points

Beta

Revenue

$3.31B

0.8% Gross Margin

Net Income

$1.02B

0.3% Net Margin

EPS (Diluted)

$0.98

Cash & Equivalents

$2.78B

Free Cash Flow

$742.00M

Financial Statements

Beta

Revenue	$3.31B
Gross Profit	$2.76B
SG&A Expenses	$798.00M
Operating Expenses	$1.99B
Operating Income	$1.32B
Interest Expense	$147.00M
Net Income	$1.02B
EPS (Basic)	$0.99
EPS (Diluted)	$0.98
Shares Outstanding (Basic)	1.03B
Shares Outstanding (Diluted)	1.04B

Key Highlights

1Total revenues decreased by 8.6% to $3.31 billion in Q1 2009 compared to Q1 2008.
2Product sales declined by 8.4% to $3.24 billion, influenced by macroeconomic conditions and product-specific challenges.
3Net income decreased by 7.4% to $1.02 billion, with diluted EPS falling to $0.98 from $1.01 year-over-year.
4Amgen adopted new accounting standards for convertible debt instruments (FSP APB 14-1) effective January 1, 2009, which required retrospective application.
5The company repurchased $2.0 billion of its common stock during the quarter, demonstrating commitment to shareholder returns.
6Total debt increased from $9.35 billion at the end of 2008 to $11.41 billion at the end of Q1 2009, largely due to the issuance of new notes.
7Cash, cash equivalents, and marketable securities remained strong at $10.38 billion, providing ample liquidity.

AMGEN INC Quarterly Report for Q1 Ended Mar 31, 2009

Summary

Financial Highlights

Key Highlights

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