10-QPeriod: Q3 FY2023

AMGEN INC Quarterly Report for Q3 Ended Sep 30, 2023

Filed October 31, 2023For Securities:AMGN

Summary

Amgen Inc. reported total revenues of $6.9 billion for the third quarter of 2023, a 4% increase compared to the same period last year, driven by a 5% rise in product sales to $6.5 billion. For the nine-month period, total revenues grew by 3% to $19.99 billion. Net income for the third quarter was $1.73 billion, a decrease of 19% year-over-year, resulting in diluted EPS of $3.22. However, for the nine-month period, net income surged by 21% to $5.95 billion, with diluted EPS of $11.06, demonstrating strong performance over the year-to-date. A significant event during the quarter was the completion of the acquisition of Horizon Therapeutics plc on October 6, 2023, for approximately $27.8 billion. This strategic move is expected to bolster Amgen's inflammation portfolio with key treatments for rare inflammatory diseases. The company also made progress in its pipeline, announcing positive Phase 2 data for tarlatamab in small cell lung cancer and positive Phase 3 data for LUMAKRAS/LUMYKRAS in colorectal cancer.

Financial Highlights

54 data points
Beta

Revenue

$6.90B

73.8% Gross Margin

Net Income

$1.73B

25.1% Net Margin

EPS (Diluted)

$3.22

Total Assets

$90.53B

Cash & Equivalents

$34.74B

Free Cash Flow

$2.51B

Financial Statements
Beta
Revenue$6.90B
Cost of Revenue$1.81B
Gross Profit$5.10B
SG&A Expenses$1.35B
Operating Expenses$4.88B
Operating Income$2.02B
Interest Expense$759.00M
Net Income$1.73B
EPS (Basic)$3.23
EPS (Diluted)$3.22
Shares Outstanding (Basic)535.00M
Shares Outstanding (Diluted)538.00M

Key Highlights

  • 1Total revenues for Q3 2023 increased by 4% to $6.9 billion, with product sales up 5% to $6.5 billion.
  • 2Net income for Q3 2023 decreased by 19% to $1.73 billion, leading to diluted EPS of $3.22.
  • 3For the first nine months of 2023, net income increased by 21% to $5.95 billion, with diluted EPS of $11.06.
  • 4Amgen completed the acquisition of Horizon Therapeutics plc for approximately $27.8 billion on October 6, 2023, to strengthen its inflammation portfolio.
  • 5Product sales for Prolia, Repatha, Nplate, and EVENITY showed significant year-over-year growth for both the three and nine-month periods.
  • 6ENBREL and Otezla sales experienced declines in the reported periods.
  • 7Interest expense significantly increased due to higher overall debt and interest rates, largely associated with financing activities for the Horizon acquisition.

Frequently Asked Questions

In the third quarter of 2023, Amgen reported total revenues of $6.9 billion, a 4% increase year-over-year. Product sales grew by 5% to $6.5 billion. However, net income decreased by 19% to $1.73 billion, resulting in diluted earnings per share (EPS) of $3.22.

The most significant strategic development was the completion of the acquisition of Horizon Therapeutics plc on October 6, 2023, for approximately $27.8 billion. This acquisition is expected to enhance Amgen's position in treating rare and inflammatory diseases. Additionally, Amgen announced positive clinical trial data for its pipeline candidates, tarlatamab and LUMAKRAS/LUMYKRAS.

Several key products showed strong growth, including Prolia (up 14%), Repatha (up 31%), Nplate (up 45%), and EVENITY (up 53%). Conversely, ENBREL sales decreased by 6% and Otezla sales decreased by 10%, primarily due to factors like unfavorable sales deductions and pricing pressures.

The acquisition of Horizon Therapeutics was completed shortly after the quarter ended, on October 6, 2023. Its financial impact, including revenue and expenses from Horizon, will be included in Amgen's consolidated financial statements starting in the fourth quarter of 2023. The acquisition was primarily financed through debt issuances, which contributed to an increase in interest expense.