10-QPeriod: Q3 FY2022

AMGEN INC Quarterly Report for Q3 Ended Sep 30, 2022

Filed November 4, 2022For Securities:AMGN

Summary

Amgen Inc. reported solid financial results for the third quarter and first nine months of 2022, demonstrating resilience despite a challenging macroeconomic environment. Total revenues for the nine months increased by 2% year-over-year to $19.48 billion, driven by product sales growth and increased other revenues. Net income also saw a significant increase of 24% for the same period, reaching $4.94 billion, with diluted Earnings Per Share (EPS) rising to $9.11. The company's operating income showed substantial growth, up 38% for the nine-month period, reflecting effective cost management and operational efficiency. The company continued its strategic capital allocation through robust share repurchases and dividend payments, underscoring its commitment to returning value to shareholders. Amgen also made significant progress on its pipeline, highlighted by positive trial results for LUMAKRAS/LUMYKRAS. The recent acquisition of ChemoCentryx, Inc. for approximately $3.7 billion is expected to further enhance its therapeutic offerings in autoimmune diseases, inflammatory disorders, and cancer, positioning the company for future growth.

Financial Highlights

54 data points
Beta

Revenue

$6.65B

76.1% Gross Margin

Net Income

$2.14B

32.2% Net Margin

EPS (Diluted)

$3.98

Total Assets

$63.70B

Cash & Equivalents

$9.50B

Free Cash Flow

$2.82B

Financial Statements
Beta
Revenue$6.65B
Cost of Revenue$1.59B
Gross Profit$5.06B
SG&A Expenses$1.29B
Operating Expenses$3.99B
Operating Income$2.66B
Interest Expense$368.00M
Net Income$2.14B
EPS (Basic)$4.01
EPS (Diluted)$3.98
Shares Outstanding (Basic)535.00M
Shares Outstanding (Diluted)538.00M

Key Highlights

  • 1Total revenues for the nine months ended September 30, 2022, increased by 2% to $19.48 billion compared to $19.13 billion in the prior year.
  • 2Net income for the nine months increased by 24% to $4.94 billion, with diluted EPS rising to $9.11 from $6.93 in the prior year.
  • 3Operating income saw a substantial increase of 38% for the nine months, reaching $7.34 billion.
  • 4The company repurchased $6.3 billion of common stock during the first nine months of 2022, demonstrating a strong commitment to capital return.
  • 5Amgen completed the acquisition of ChemoCentryx, Inc. on October 20, 2022, for approximately $3.7 billion, expanding its portfolio in autoimmune diseases and inflammation.
  • 6Positive Phase 3 results for LUMAKRAS/LUMYKRAS in non-small cell lung cancer were announced, showing superior progression-free survival and response rates compared to chemotherapy.
  • 7The company maintained compliance with its financial covenants, indicating a stable financial position.

Frequently Asked Questions

For the nine months ended September 30, 2022, Amgen reported total revenues of $19.48 billion, a 2% increase year-over-year. Net income grew by 24% to $4.94 billion, and diluted EPS increased to $9.11 from $6.93 in the prior year. This strong performance was driven by increased product sales and other revenues, along with effective operating expense management.

Amgen continues to prioritize returning capital to shareholders. In the first nine months of 2022, the company repurchased $6.3 billion of common stock, including significant amounts under Accelerated Share Repurchase (ASR) agreements. Amgen also declared and paid quarterly cash dividends, reflecting its confidence in its ongoing profitability and cash flow generation.

A significant strategic development was the completion of the acquisition of ChemoCentryx, Inc. in October 2022 for approximately $3.7 billion. This acquisition is expected to bolster Amgen's portfolio in areas such as autoimmune diseases and cancer. Additionally, the company announced positive Phase 3 results for LUMAKRAS/LUMYKRAS, indicating strong progress in its oncology pipeline.

Amgen anticipates continued pressure on net selling prices due to increased competition, particularly for products like ENBREL and Neulasta facing biosimilar entries. The company also notes that foreign currency exchange rates are expected to continue to unfavorably impact international product sales. Despite these pressures, Amgen is focusing on driving unit demand for key growth products like Prolia and Repatha.