Amgen Inc. (AMGN) Bundle
A Brief History of Amgen Inc.
Amgen Inc., founded in 1980, has grown to become one of the world's leading biotechnology companies. Headquartered in Thousand Oaks, California, Amgen focuses on innovative therapies that address serious illnesses, particularly in the fields of oncology, nephrology, and inflammation.
Company Developments and Milestones
In 2023, Amgen acquired Horizon Therapeutics for approximately $28 billion, significantly expanding its portfolio with new products such as TEPEZZA and KRYSTEXXA. This acquisition has positioned Amgen to enhance its presence in the rare disease market.
Financial Performance Overview
As of the third quarter of 2024, Amgen reported total revenues of $24.338 billion for the nine months ended September 30, 2024, compared to $19.994 billion in the same period of 2023, marking a growth of 22.4%.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues (in millions) | $8,503 | $6,903 | 23.2% |
| Net Income (in millions) | $2,830 | $1,730 | 63.7% |
| Earnings Per Share (EPS) Basic | $5.27 | $3.23 | 63.2% |
| Operating Income (in millions) | $2,047 | $2,021 | 1.3% |
Product Sales Breakdown
Amgen's product sales for the nine months ended September 30, 2024, reached $23.310 billion, driven by strong performance across several key products.
| Product | Sales (in millions) |
|---|---|
| Prolia | $3,209 |
| ENBREL | $2,301 |
| XGEVA | $1,664 |
| Repatha | $1,616 |
| Otezla | $1,502 |
| TEPEZZA | $1,391 |
Debt and Equity Structure
As of September 30, 2024, Amgen reported total long-term debt of $56.854 billion, a decrease from $63.170 billion at the end of 2023. The company's total stockholders' equity was $7.527 billion, up from $6.232 billion at the end of 2023.
| Balance Sheet Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets (in millions) | $90,883 | $97,154 |
| Total Current Liabilities (in millions) | $20,312 | $18,392 |
| Long-term Debt (in millions) | $56,854 | $63,170 |
| Total Stockholders' Equity (in millions) | $7,527 | $6,232 |
Market Position and Outlook
Amgen continues to focus on strengthening its market position through strategic acquisitions, innovative product development, and enhancing operational efficiencies. The company anticipates maintaining robust revenue growth driven by its extensive product portfolio and new product launches.
A Who Owns Amgen Inc. (AMGN)
Ownership Structure
As of 2024, Amgen Inc. (AMGN) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table provides an overview of the top institutional shareholders and their respective ownership percentages:
| Institution | Ownership Percentage | Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 8.1% | 43,525,000 |
| BlackRock, Inc. | 7.0% | 37,920,000 |
| State Street Corporation | 4.5% | 24,900,000 |
| Wellington Management Group LLP | 3.9% | 21,500,000 |
| Fidelity Investments | 3.5% | 19,200,000 |
| Invesco Ltd. | 2.8% | 15,400,000 |
| Geode Capital Management, LLC | 2.5% | 13,800,000 |
| Other Institutions | 36.7% | 200,900,000 |
| Total Institutional Ownership | 68.0% | 373,000,000 |
| Insider Ownership | 0.5% | 2,700,000 |
| Public Float | 31.5% | 171,000,000 |
Insider Ownership
As of 2024, insiders hold approximately 0.5% of Amgen's total shares, translating to around 2.7 million shares. Key insiders include:
- Robert A. Bradway (Chairman and CEO)
- David W. Meline (CFO)
- Other executive officers and board members
Recent Institutional Changes
In the latest quarter, several institutional investors have adjusted their positions in Amgen:
- The Vanguard Group increased its holdings by 1.2%.
- BlackRock reduced its stake by 0.5%.
- State Street maintained its position, while Wellington Management slightly increased its shares.
Share Performance and Market Trends
As of September 30, 2024, Amgen's stock price was approximately $328.80. The stock has shown resilience in a challenging market environment, with a year-to-date increase of 15%.
Amgen's market capitalization stands at approximately $175 billion, making it one of the leading biopharmaceutical companies globally.
Conclusion on Ownership Landscape
Amgen's ownership landscape reflects a strong institutional presence, with significant stakes held by major asset managers. The company continues to engage with its shareholders, focusing on delivering long-term value through innovation and strategic acquisitions.
Amgen Inc. (AMGN) Mission Statement
Amgen Inc. is dedicated to unlocking the potential of biology for patients worldwide by translating science into innovative medicines. The mission emphasizes the commitment to deliver therapeutic solutions for serious illnesses.
Core Values
- Integrity in all actions
- Innovation in science and technology
- Collaboration with stakeholders
- Commitment to patient-centric healthcare
Financial Performance Overview
As of September 30, 2024, Amgen reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $8,503 million | $6,903 million | 23.2% |
| Net Income | $2,830 million | $1,730 million | 63.6% |
| Earnings Per Share (Diluted) | $5.22 | $3.22 | 62.1% |
| Research and Development Expenses | $1,450 million | $1,079 million | 34.4% |
| Total Assets | $90,883 million | $97,154 million | -6.6% |
| Total Stockholders' Equity | $7,527 million | $6,232 million | 20.8% |
Recent Strategic Initiatives
In October 2023, Amgen completed the acquisition of Horizon Therapeutics for approximately $27.8 billion. This acquisition enhances Amgen’s portfolio in rare and autoimmune diseases, aligning with its mission to deliver innovative therapies.
Product Portfolio and Revenue Streams
The revenue from key products in Q3 2024 includes:
| Product | U.S. Revenue (in million) | ROW Revenue (in million) | Total Revenue (in million) |
|---|---|---|---|
| Prolia | $683 | $362 | $1,045 |
| ENBREL | $817 | $8 | $825 |
| XGEVA | $373 | $168 | $541 |
| Repatha | $281 | $286 | $567 |
| Otezla | $460 | $104 | $564 |
| TEPEZZA | $482 | $6 | $488 |
| EVENITY | $289 | $110 | $399 |
| KYPROLIS | $238 | $140 | $378 |
| Nplate | $345 | $111 | $456 |
| Aranesp | $105 | $232 | $337 |
| KRYSTEXXA | $310 | $0 | $310 |
| BLINCYTO | $237 | $90 | $327 |
| Vectibix | $132 | $150 | $282 |
Commitment to Sustainability and Community
Amgen is committed to reducing its environmental impact and enhancing community health through various initiatives, consistent with its mission to improve health outcomes.
Conclusion
Amgen Inc. continues to align its strategic objectives with its mission statement, focusing on innovation, patient care, and financial growth.
How Amgen Inc. (AMGN) Works
Company Overview
Amgen Inc. is a global biotechnology company focused on discovering, developing, manufacturing, and delivering innovative human therapeutics. The company operates primarily in the human therapeutics segment and has a diverse product portfolio that includes biologic therapies for various diseases.
Financial Performance
As of September 30, 2024, Amgen reported total revenues of $24.34 billion for the nine months ending on that date, compared to $19.99 billion for the same period in 2023. The company’s net income for the same period was $3.46 billion, down from $5.95 billion in 2023.
| Financial Metric | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Total Revenues | $24.34 billion | $19.99 billion |
| Net Income | $3.46 billion | $5.95 billion |
| Earnings Per Share (Diluted) | $6.40 | $11.06 |
| Operating Income | $4.95 billion | $6.63 billion |
| Total Assets | $90.88 billion | $97.15 billion |
| Total Liabilities | $83.36 billion | $90.92 billion |
| Stockholders' Equity | $7.53 billion | $6.23 billion |
Product Sales
Amgen's product sales for the three months ended September 30, 2024, totaled $8.15 billion, an increase from $6.55 billion for the same period in 2023. The major contributors to product sales included Prolia, ENBREL, and XGEVA.
| Product | Q3 2024 Sales (Millions) | Q3 2023 Sales (Millions) |
|---|---|---|
| Prolia | $1,045 | $986 |
| ENBREL | $825 | $1,035 |
| XGEVA | $541 | $519 |
| Repatha | $567 | $406 |
| Otezla | $564 | $567 |
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses were reported at $19.39 billion, compared to $13.37 billion in 2023. Key components of operating expenses include research and development (R&D) and selling, general, and administrative (SG&A) expenses.
| Expense Type | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Cost of Sales | $9.75 billion | $5.34 billion |
| Research and Development | $4.24 billion | $3.25 billion |
| Selling, General and Administrative | $5.22 billion | $3.91 billion |
Cash Flow Analysis
For the nine months ending September 30, 2024, Amgen reported net cash provided by operating activities at $6.72 billion, a decrease from $7.93 billion in 2023. Cash flows from investing activities showed a net cash used of $644 million, while financing activities resulted in a net cash used of $8.01 billion.
| Cash Flow Category | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Cash from Operating Activities | $6.72 billion | $7.93 billion |
| Net Cash from Investing Activities | $(644) million | $885 million |
| Net Cash from Financing Activities | $(8.01) billion | $18.29 billion |
Acquisition of Horizon Therapeutics
On October 6, 2023, Amgen completed its acquisition of Horizon Therapeutics for approximately $27.8 billion. This strategic acquisition is expected to enhance Amgen's product offerings in rare and autoimmune diseases.
| Acquisition Details | Amount (in billions) |
|---|---|
| Purchase Price | $27.8 |
| Acquisition Date | October 6, 2023 |
| Key Products Added | TEPEZZA, KRYSTEXXA, UPLIZNA |
Market Position and Strategy
Amgen continues to focus on expanding its product pipeline and enhancing its market presence through acquisitions and innovative research. The company’s strategy emphasizes the development of therapies for serious diseases and conditions.
Stock Performance
As of September 30, 2024, Amgen's stock price was approximately $328.80 per share, reflecting a stable market position despite fluctuations in the biotechnology sector.
| Stock Performance | Value |
|---|---|
| Current Stock Price | $328.80 |
| Market Capitalization | $176.4 billion |
How Amgen Inc. (AMGN) Makes Money
Revenue Sources
Amgen's revenue primarily comes from two sources: product sales and other revenues. For the nine months ended September 30, 2024, Amgen reported:
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Product Sales | $23,310 | $19,077 | 22.3% |
| Other Revenues | $1,028 | $917 | 12.1% |
| Total Revenues | $24,338 | $19,994 | 21.5% |
Product Sales Breakdown
Amgen's product sales are derived from a diversified portfolio of therapeutic products. The following table summarizes the sales from key products for Q3 2024:
| Product | Q3 2024 Sales (in millions) | Q3 2023 Sales (in millions) | Change (%) |
|---|---|---|---|
| Prolia | $3,209 | $2,941 | 9% |
| ENBREL | $2,301 | $2,682 | (14)% |
| XGEVA | $1,664 | $1,585 | 5% |
| Repatha | $1,616 | $1,218 | 33% |
| Otezla | $1,502 | $1,559 | (4)% |
| Total Product Sales | $23,310 | $19,077 | 22.3% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $19,391 million, compared to $13,368 million for the same period in 2023. The increase in expenses is driven by:
- Cost of Sales: Increased from $5,339 million in 2023 to $9,746 million in 2024.
- Research and Development: Increased from $3,250 million in 2023 to $4,240 million in 2024.
- Selling, General and Administrative: Increased from $3,905 million in 2023 to $5,218 million in 2024.
Net Income
Amgen reported a net income of $3,463 million for the nine months ended September 30, 2024, a decrease from $5,950 million in the same period of the prior year. The decrease is primarily attributed to higher operating expenses and increased interest expenses.
Acquisition of Horizon Therapeutics
On October 6, 2023, Amgen completed its acquisition of Horizon Therapeutics for approximately $27.8 billion. This acquisition is expected to enhance Amgen's product offerings in rare diseases and strengthen its pipeline.
Stock Performance
As of September 30, 2024, Amgen's stock price was approximately $328.80, reflecting a market capitalization of around $176.4 billion. The company has a strong history of stock repurchases, with a remaining authorization of $6.98 billion for future repurchase activities.
Financial Ratios
Key financial ratios for Amgen as of September 30, 2024, include:
| Financial Ratio | Value |
|---|---|
| Gross Margin | 58.4% |
| Operating Margin | 20.3% |
| Net Profit Margin | 14.2% |
| Debt-to-Equity Ratio | 7.56 |
Conclusion
Amgen continues to demonstrate robust growth in product sales, driven by its diverse portfolio and strategic acquisitions. The company’s financial performance reflects its commitment to innovation and expansion within the biotechnology sector.
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Article updated on 8 Nov 2024
Resources:
- Amgen Inc. (AMGN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Amgen Inc. (AMGN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Amgen Inc. (AMGN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.