Summary
Amgen Inc. reported total revenues of $5.901 billion for the first quarter of 2021, a decrease of 4% compared to $6.161 billion in the prior year period. This decline was primarily driven by a 5% decrease in total product sales, largely due to lower net selling prices for certain products, particularly Enbrel and Neulasta, and the ongoing impact of the COVID-19 pandemic on patient access and diagnoses. Despite the revenue dip, operating expenses saw a slight decrease of 1%, and net income stood at $1.646 billion, resulting in diluted Earnings Per Share (EPS) of $2.83, down from $3.07 in the prior year. The company demonstrated its commitment to returning capital to shareholders by repurchasing $865 million of common stock and declaring a quarterly dividend of $1.76 per share. Cash flow from operations remained robust at $2.104 billion. Amgen also advanced its strategic growth initiatives, notably completing the acquisition of Five Prime Therapeutics for approximately $1.9 billion to bolster its oncology pipeline. The company continues to navigate the uncertainties of the COVID-19 pandemic, which has impacted patient interactions and product demand, but believes its financial position remains adequate to meet its obligations and pursue future opportunities.
Financial Highlights
53 data points| Revenue | $5.90B |
| Cost of Revenue | $1.49B |
| Gross Profit | $4.41B |
| SG&A Expenses | $1.25B |
| Operating Expenses | $3.77B |
| Operating Income | $2.13B |
| Interest Expense | $285.00M |
| Net Income | $1.65B |
| EPS (Basic) | $2.85 |
| EPS (Diluted) | $2.83 |
| Shares Outstanding (Basic) | 577.00M |
| Shares Outstanding (Diluted) | 581.00M |
Key Highlights
- 1Total revenues decreased by 4% year-over-year to $5.901 billion, primarily due to a 5% decline in product sales.
- 2Net income decreased by 10% to $1.646 billion, with diluted EPS falling to $2.83 from $3.07 in the prior year.
- 3Enbrel sales saw a significant 20% decrease, and Neulasta sales dropped by 21%, largely due to patent expirations, biosimilar competition, and prior-year favorable adjustments.
- 4Prolia and Repatha showed strong growth, with sales increasing by 16% and 25% respectively, driven by higher unit demand.
- 5The company returned $1.0 billion in dividends and repurchased $865 million in stock during the quarter, demonstrating a commitment to shareholder returns.
- 6Operating expenses decreased slightly by 1% due to lower amortization, though R&D expenses increased to support pipeline development and acquisitions.
- 7Amgen completed the acquisition of Five Prime Therapeutics for approximately $1.9 billion to strengthen its oncology pipeline.