Summary
Amgen Inc.'s second-quarter 2015 report shows solid revenue growth, with total revenues reaching $5.37 billion, a 4% increase year-over-year, primarily driven by strong product sales, up 6% to $5.23 billion. This growth was fueled by key products like ENBREL, Prolia®, Sensipar®, and Kyprolis®. Net income also saw a healthy increase of 7% to $1.65 billion, translating to a diluted Earnings Per Share (EPS) of $2.15, up 7% from the prior year. The company continues to invest in its pipeline, with R&D expenses decreasing slightly for the quarter but still representing a significant portion of overall expenses. Financially, Amgen maintains a strong balance sheet with total assets of $71.2 billion and robust liquidity, evidenced by cash and cash equivalents and marketable securities totaling $30.0 billion. The company has also been actively returning capital to shareholders through dividends and share repurchases, with $2.9 billion remaining available under its stock repurchase program. While the company faces ongoing legal and regulatory challenges, including biosimilar competition and patent expirations for older drugs like Neulasta® and EPOGEN®, the diversified product portfolio and ongoing pipeline development for new therapies like Repatha™ appear to position Amgen for continued growth.
Financial Highlights
55 data points| Revenue | $5.37B |
| Cost of Revenue | $1.09B |
| Gross Profit | $4.14B |
| SG&A Expenses | $1.16B |
| Operating Expenses | $3.29B |
| Operating Income | $2.08B |
| Interest Expense | $277.00M |
| Net Income | $1.65B |
| EPS (Basic) | $2.18 |
| EPS (Diluted) | $2.15 |
| Shares Outstanding (Basic) | 760.00M |
| Shares Outstanding (Diluted) | 768.00M |
Key Highlights
- 1Total revenues increased by 4% to $5.37 billion for the three months ended June 30, 2015, compared to $5.18 billion in the prior year period.
- 2Product sales increased by 6% to $5.23 billion, driven by strong performance from ENBREL, Prolia®, Sensipar®, and Kyprolis®.
- 3Net income rose by 7% to $1.65 billion, resulting in a diluted EPS of $2.15, a 7% increase year-over-year.
- 4The company has a strong liquidity position with $29.99 billion in cash, cash equivalents, and marketable securities as of June 30, 2015.
- 5Amgen continued to return capital to shareholders, repurchasing $966 million of stock in the first six months of 2015.
- 6Restructuring charges of $63 million were incurred in the quarter as part of a plan initiated in late 2014 to improve cost structure.
- 7Regulatory progress was noted for Repatha™ (evolocumab) with a PDUFA target action date of August 27, 2015, in the U.S. and marketing authorization in the EU.