AMGEN INC Quarterly Report for Q3 Ended Sep 30, 2009

Summary

Amgen Inc.'s third quarter 2009 report shows a net income of $1.386 billion, or $1.36 per diluted share, a significant increase from the prior year's $1.121 billion and $1.05 per diluted share, respectively. This growth was primarily driven by lower operating expenses, particularly in cost of sales and R&D, and a more favorable tax rate. Total revenues saw a slight decrease to $3.812 billion from $3.875 billion in the same quarter last year, with product sales contributing $3.736 billion compared to $3.784 billion. The company's balance sheet reflects a strong liquidity position with cash, cash equivalents, and marketable securities totaling $14.013 billion. Total assets grew to $40.940 billion, with stockholders' equity increasing to $22.858 billion. Amgen also successfully raised capital by issuing new notes and continued its share repurchase program, demonstrating a commitment to returning value to shareholders. Despite slight declines in overall revenue, the company demonstrated improved profitability and a solid financial foundation. Key developments during the quarter included progress in regulatory reviews for Prolia™, although the FDA requested additional information. The company also presented positive Phase 3 trial results for denosumab in certain cancer patient populations. However, the company highlighted ongoing challenges and potential impacts from regulatory developments, healthcare reform, and competitive pressures, particularly concerning its Epogen and Aranesp products, as well as increased competition for Enbrel.

Key Highlights

• 1Net income increased by 24% to $1.386 billion, and diluted EPS grew by 30% to $1.36 in Q3 2009 compared to Q3 2008.
• 2Total revenues decreased slightly by 1.6% to $3.812 billion, with product sales down 1.2% to $3.736 billion.
• 3Cost of sales decreased by 19% to $545 million, and R&D expenses decreased by 11% to $647 million, contributing to improved profitability.
• 4Cash, cash equivalents, and marketable securities increased significantly to $14.013 billion as of September 30, 2009.
• 5The company issued $2 billion in new notes in January 2009 and continued its stock repurchase program, buying back shares worth $1.997 billion in the quarter.
• 6Amgen adopted a new accounting standard for convertible debt, impacting the presentation of financial statements.
• 7The company reported detailed results from Phase 3 trials for denosumab, showing promise in treating bone metastases in certain cancer patients.

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