Summary
Amgen Inc. reported total revenues of $6.105 billion for the first quarter of 2023, a slight decrease from $6.238 billion in the same period of 2022. Despite the revenue dip, net income saw a significant increase, soaring to $2.841 billion ($5.28 diluted EPS) from $1.476 billion ($2.68 diluted EPS) in the prior year. This substantial earnings growth was largely driven by a substantial "Other income (expense), net" of $2.064 billion, primarily attributed to a significant unrealized gain from revaluing their investment in BeiGene. The company's strategic debt issuances totaling $24.0 billion in March 2023 were to finance the proposed acquisition of Horizon Therapeutics, which remains subject to regulatory review. Product sales showed modest growth of 2% to $5.846 billion, bolstered by strong performances from Prolia, Repatha, Nplate, and EVENITY. However, Enbrel and Otezla experienced declines. Operating expenses increased by 12% due to higher costs of sales, R&D investments, and expenses related to a restructuring plan. The company ended the quarter with a robust cash position of $31.6 billion, with a significant portion earmarked for the Horizon acquisition.
Financial Highlights
54 data points| Revenue | $6.11B |
| Cost of Revenue | $1.72B |
| Gross Profit | $4.38B |
| SG&A Expenses | $1.26B |
| Operating Expenses | $4.18B |
| Operating Income | $1.92B |
| Interest Expense | $543.00M |
| Net Income | $2.84B |
| EPS (Basic) | $5.32 |
| EPS (Diluted) | $5.28 |
| Shares Outstanding (Basic) | 534.00M |
| Shares Outstanding (Diluted) | 538.00M |
Key Highlights
- 1Net income more than doubled to $2.84 billion, driven by a significant gain on the BeiGene investment revaluation.
- 2Total revenues slightly decreased by 2% to $6.105 billion, impacted by lower "Other revenues" from a COVID-19 collaboration.
- 3Product sales grew by 2% to $5.846 billion, with notable increases in Prolia, Repatha, Nplate, and EVENITY.
- 4Diluted EPS surged by 97% to $5.28.
- 5The company issued $24.0 billion in senior notes to finance the proposed acquisition of Horizon Therapeutics, which is currently undergoing FTC review.
- 6Cash and cash equivalents increased significantly to $31.6 billion, largely due to debt issuances.
- 7Operating expenses rose by 12% due to higher cost of sales (including amortization from acquisitions and restructuring costs) and increased R&D spending.