AMGEN INC Quarterly Report for Q1 Ended Mar 31, 2010

Summary

Amgen Inc. reported strong financial results for the first quarter of 2010, with total revenues reaching $3.59 billion, a 8.5% increase year-over-year. Net income also saw a healthy rise to $1.17 billion, translating to diluted earnings per share of $1.18, up from $0.98 in the prior year's quarter. This growth was primarily driven by a 9% increase in product sales, reaching $3.53 billion, fueled by strong performance across key products like EPOGEN, Neulasta/NEUPOGEN, and ENBREL, as well as significant international growth. The company maintained a robust balance sheet with $14.1 billion in cash, cash equivalents, and marketable securities. However, total debt increased due to new note issuances and the current portion of convertible notes. Amgen continued its commitment to returning capital to shareholders through a significant stock repurchase program, repurchasing approximately 29 million shares in the quarter. Despite positive financial performance, the company highlighted the potential adverse impacts of the recently enacted U.S. healthcare reform law, which is expected to significantly affect future revenue and operations.

Key Highlights

• 1Total revenues increased by 8.5% to $3.59 billion compared to the prior year's quarter.
• 2Net income rose by 14.5% to $1.17 billion, with diluted EPS improving to $1.18 from $0.98.
• 3Product sales grew by 9% to $3.53 billion, driven by strong performance in key products and international markets.
• 4The company maintained substantial liquidity with $14.1 billion in cash, cash equivalents, and marketable securities.
• 5Amgen repurchased approximately 29 million shares of common stock for $1.7 billion during the quarter.
• 6The company anticipates a significant adverse impact from the U.S. healthcare reform law enacted in March 2010.
• 7New debt issuances totaled $1 billion, with the current portion of convertible notes increasing significantly.

Frequently Asked Questions