10-QPeriod: Q1 FY2025

AMGEN INC Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 2, 2025For Securities:AMGN

Summary

Amgen Inc. reported a significant turnaround in the first quarter of 2025, with net income swinging from a loss of $113 million in Q1 2024 to a profit of $1.73 billion in Q1 2025. This substantial improvement was driven by a robust increase in total revenues, which grew by 9% year-over-year to $8.15 billion, primarily fueled by an 11% rise in product sales to $7.87 billion. The company's operating income also saw a healthy increase of 19% to $1.18 billion, reflecting effective cost management despite a notable $800 million impairment charge related to Otezla. The balance sheet shows a decrease in cash and cash equivalents to $8.81 billion from $11.97 billion, alongside a reduction in total debt. The company continues to prioritize shareholder returns, declaring a quarterly dividend of $2.38 per share, underscoring its commitment to financial health and shareholder value. Investors should note the ongoing legal proceedings, particularly the significant U.S. tax litigation, which remains a key area of focus, although a decision is not expected until the second half of 2026.

Financial Highlights

53 data points
Beta

Revenue

$8.15B

63.6% Gross Margin

Net Income

$1.73B

21.2% Net Margin

EPS (Diluted)

$3.20

Total Assets

$89.37B

Cash & Equivalents

$8.81B

Free Cash Flow

$980.00M

Financial Statements
Beta
Revenue$8.15B
Cost of Revenue$2.97B
Gross Profit$5.18B
SG&A Expenses$1.69B
Operating Expenses$6.97B
Operating Income$1.18B
Interest Expense$723.00M
Net Income$1.73B
EPS (Basic)$3.22
EPS (Diluted)$3.20
Shares Outstanding (Basic)538.00M
Shares Outstanding (Diluted)541.00M

Key Highlights

  • 1Amgen reported a strong Q1 2025 with net income of $1.73 billion, a significant improvement from a net loss of $113 million in Q1 2024.
  • 2Total revenues increased by 9% to $8.15 billion, driven by an 11% rise in product sales to $7.87 billion, with notable growth in key products like Repatha, EVENITY, and BLINCYTO.
  • 3Operating income grew by 19% to $1.18 billion, demonstrating improved operational efficiency.
  • 4The company incurred an $800 million intangible asset impairment charge related to Otezla due to its selection for Medicare price setting under the IRA.
  • 5Cash and cash equivalents decreased to $8.81 billion, while total debt also saw a reduction during the quarter.
  • 6Amgen declared a quarterly cash dividend of $2.38 per share, signaling continued commitment to returning capital to shareholders.
  • 7Significant U.S. tax litigation regarding profit allocation between the U.S. and Puerto Rico remains ongoing, with a U.S. Tax Court decision not expected before the second half of 2026.

Frequently Asked Questions

The primary driver of Amgen's revenue growth in Q1 2025 was a strong increase in product sales, which rose by 11% year-over-year to $7.87 billion. This growth was supported by volume increases in key products such as Repatha, EVENITY, BLINCYTO, and TEZSPIRE.

Amgen recorded an $800 million intangible asset impairment charge in Q1 2025 related to its product Otezla. This was triggered by Otezla's selection for Medicare price setting under the Inflation Reduction Act (IRA), which impacted the estimated future cash flows for the product in the United States. While this charge affected operating expenses, the company's overall net income remained strongly positive due to robust revenue growth.

Amgen is actively contesting significant tax disputes with the IRS concerning the allocation of profits between the U.S. and Puerto Rico for the years 2010-2015. The trial concluded in January 2025, and the company expects a decision from the U.S. Tax Court no earlier than the second half of 2026. While the company believes its tax positions are valid, the outcome could potentially result in substantial tax liabilities.

Amgen demonstrated a reduction in its total debt during the quarter. The company also continues its commitment to shareholder returns by declaring a quarterly cash dividend of $2.38 per share. Furthermore, Amgen has a remaining authorization of $6.8 billion under its stock repurchase program, though no shares were repurchased in the first quarter of 2025.