Summary
Amgen Inc. reported a slight increase in total revenues for the nine months ended September 30, 2018, reaching $17.5 billion, a 3% rise from the prior year. This growth was primarily driven by product sales, which increased by 2% to $16.5 billion, with notable growth in Prolia®, XGEVA®, and 'Other products', partially offset by declines in ENBREL®, Neulasta®, Aranesp®, Sensipar®/Mimpara®, and EPOGEN®. The company's net income saw a more significant increase of 4% to $6.5 billion for the nine-month period, leading to a substantial 14% rise in diluted Earnings Per Share (EPS) to $9.61, reflecting the benefits of U.S. corporate tax reform. However, the third quarter of 2018 showed a slight dip in net income and a modest increase in diluted EPS compared to the prior year's quarter, highlighting sequential pressures. Financially, Amgen significantly strengthened its cash position, ending the period with $11.96 billion in cash and cash equivalents, a substantial increase from $3.8 billion at the end of 2017, primarily due to strong operating cash flows and strategic management of marketable securities. The company also continued its aggressive capital return strategy, repurchasing approximately $15.7 billion of its stock in the first nine months of 2018. The company is navigating patent expiries and increasing biosimilar competition for some of its key legacy products, which is reflected in sales trends for drugs like ENBREL and Neulasta®.
Financial Highlights
55 data points| Revenue | $5.90B |
| Cost of Revenue | $1.04B |
| Gross Profit | $4.47B |
| SG&A Expenses | $1.29B |
| Operating Expenses | $3.58B |
| Operating Income | $2.32B |
| Interest Expense | $355.00M |
| Net Income | $1.86B |
| EPS (Basic) | $2.88 |
| EPS (Diluted) | $2.86 |
| Shares Outstanding (Basic) | 645.00M |
| Shares Outstanding (Diluted) | 649.00M |
Key Highlights
- 1Total revenues grew 2% year-over-year to $16.5 billion for the first nine months of 2018, driven by product sales increase.
- 2Net income for the first nine months of 2018 increased by 4% to $6.5 billion, while diluted EPS saw a significant 14% jump to $9.61.
- 3The company's cash and cash equivalents dramatically increased to $11.96 billion by September 30, 2018, up from $3.8 billion at the end of 2017.
- 4Amgen returned substantial capital to shareholders, repurchasing $15.7 billion of its stock in the first nine months of 2018.
- 5Product sales for ENBREL and Neulasta® experienced declines, reflecting ongoing patent expiries and increasing biosimilar competition.
- 6Conversely, Prolia® and XGEVA® demonstrated strong growth, with 17% and 12% increases in sales, respectively, for the nine-month period.
- 7The effective tax rate decreased significantly in 2018 to 12.1% (year-to-date) from 15.4% in the prior year, primarily due to the U.S. corporate tax reform.