10-QPeriod: Q3 FY2010

AMGEN INC Quarterly Report for Q3 Ended Sep 30, 2010

Filed November 8, 2010For Securities:AMGN

Summary

Amgen Inc. reported steady revenue growth for the nine months ended September 30, 2010, with total revenues increasing by 3% to $11.212 billion compared to the same period in 2009. While total revenues remained flat year-over-year for the third quarter, the company demonstrated strong operational performance. Net income for the nine-month period saw a slight decrease of 2% to $3.605 billion, primarily impacted by a higher effective tax rate. Diluted Earnings Per Share (EPS) for the nine months increased by 4% to $3.71, benefiting from a reduced share count due to active stock repurchases. The company's balance sheet shows a healthy financial position with total assets of $43.534 billion and total stockholders' equity of $24.071 billion as of September 30, 2010. Cash and cash equivalents, along with marketable securities, stood at $17.049 billion, providing ample liquidity. Amgen continued to return value to shareholders through its stock repurchase program, with $2.7 billion spent on repurchases during the first nine months of 2010.

Financial Highlights

51 data points
Beta

Revenue

$3.82B

83.1% Gross Margin

Net Income

$1.24B

32.4% Net Margin

EPS (Diluted)

$1.28

Total Assets

$43.53B

Cash & Equivalents

$2.95B

Free Cash Flow

$1.18B

Financial Statements
Beta
Revenue$3.82B
Gross Profit$3.17B
SG&A Expenses$957.00M
Operating Expenses$2.34B
Operating Income$1.48B
Interest Expense$150.00M
Net Income$1.24B
EPS (Basic)$1.29
EPS (Diluted)$1.28
Shares Outstanding (Basic)958.00M
Shares Outstanding (Diluted)962.00M

Key Highlights

  • 1Total revenues for the nine months ended September 30, 2010, increased by 3% to $11.212 billion, compared to $10.833 billion in the prior year.
  • 2Net income for the nine months decreased by 2% to $3.605 billion, impacted by a higher effective tax rate.
  • 3Diluted EPS for the nine months increased by 4% to $3.71, driven by share repurchases.
  • 4The company reported $17.049 billion in cash, cash equivalents, and marketable securities as of September 30, 2010, indicating strong liquidity.
  • 5Amgen repurchased approximately 46 million shares for $2.7 billion during the first nine months of 2010.
  • 6New product, Prolia™, generated $13 million in worldwide sales for the nine months ended September 30, 2010.
  • 7The company is actively managing its debt, issuing new notes in March and September 2010 to extend its maturity profile.

Frequently Asked Questions

For the nine months ended September 30, 2010, Amgen reported total revenues of $11.212 billion, a 3% increase from $10.833 billion in the same period of 2009. Net income decreased by 2% to $3.605 billion, primarily due to an increase in the effective tax rate. Diluted Earnings Per Share (EPS) increased by 4% to $3.71.

As of September 30, 2010, Amgen maintained a strong financial position with total assets of $43.534 billion and total stockholders' equity of $24.071 billion. The company reported $17.049 billion in cash, cash equivalents, and marketable securities, indicating robust liquidity to meet its obligations and fund operations.

Amgen continued its stock repurchase program, repurchasing approximately 46 million shares for $2.7 billion during the first nine months of 2010. This activity contributed to a reduction in the diluted share count, thereby boosting EPS. The company had $3.3 billion remaining under its authorized repurchase program as of September 30, 2010.

While overall product sales saw a modest increase, performance varied by product. Aranesp® sales declined, particularly in the U.S., while Neulasta®/NEUPOGEN® and Vectibix® showed growth. The newly launched Prolia™ generated $13 million in sales for the nine-month period. Regulatory developments and reimbursement changes for Erythropoiesis-Stimulating Agents (ESAs) like Aranesp® and EPOGEN® are noted as potential risks.