Summary
Amgen Inc. reported total revenues of $6.53 billion for the second quarter of 2021, a 5% increase compared to the same period in the prior year, primarily driven by other revenues and growth in certain key products. However, net income and diluted Earnings Per Share (EPS) saw a significant decline of 74% and 73% respectively, to $464 million and $0.81 per share. This decrease is largely attributable to a substantial increase in operating expenses, notably $1.5 billion in acquired in-process research and development (IPR&D) related to the Five Prime Therapeutics acquisition. Despite the year-over-year dip in profitability for the quarter, the company demonstrated strong performance in specific product areas such as Prolia®, Repatha®, and XGEVA®, which showed double-digit percentage increases in sales. The company also continues to return capital to shareholders through dividends and an active stock repurchase program. Looking ahead, Amgen faces ongoing challenges including biosimilar competition for key drugs like Enbrel® and Neulasta®, and significant ongoing U.S. tax litigation with the IRS that could materially impact future financial results.
Financial Highlights
54 data points| Revenue | $6.53B |
| Cost of Revenue | $1.64B |
| Gross Profit | $4.89B |
| SG&A Expenses | $1.38B |
| Operating Expenses | $5.70B |
| Operating Income | $828.00M |
| Interest Expense | $281.00M |
| Net Income | $464.00M |
| EPS (Basic) | $0.81 |
| EPS (Diluted) | $0.81 |
| Shares Outstanding (Basic) | 573.00M |
| Shares Outstanding (Diluted) | 576.00M |
Key Highlights
- 1Total revenues increased 5% year-over-year to $6.53 billion for Q2 2021, driven by 'Other Revenues' (+38%) and growth in key products like Prolia® (+24%) and Repatha® (+43%).
- 2Net income declined significantly by 74% to $464 million for Q2 2021, and diluted EPS fell 73% to $0.81, primarily due to a $1.5 billion charge for acquired in-process R&D from the Five Prime acquisition.
- 3Operating expenses increased substantially by 47% to $5.7 billion in Q2 2021, heavily impacted by the $1.5 billion in acquired IPR&D.
- 4The company repurchased $2.5 billion of common stock and paid $2.0 billion in dividends in the first six months of 2021, demonstrating a commitment to returning capital to shareholders.
- 5Enbrel® sales decreased 8% year-over-year for Q2 2021, impacted by lower net selling price and biosimilar competition.
- 6Neulasta® sales saw a significant decline of 18% year-over-year for Q2 2021, attributed to biosimilar competition impacting net selling price and unit demand.
- 7Amgen is involved in significant U.S. tax litigation with the IRS regarding profit allocation for 2010-2012, with the IRS seeking approximately $3.6 billion in additional federal tax, plus interest.