Amgen(US:AMGN)2024-08-06 22:54Financial Performance - Total revenues for the three months ended June 30, 2024, were $8,388 million, a 20% increase from $6,986 million in the same period of 2023[10] - Product sales reached $8,041 million for the three months ended June 30, 2024, compared to $6,683 million in the same period of 2023, reflecting a 20% growth[10] - Net income for the three months ended June 30, 2024, was $746 million, down 46% from $1,379 million in the same period of 2023[10] - Earnings per share (EPS) for the three months ended June 30, 2024, were $1.39 (basic) and $1.38 (diluted), compared to $2.58 (basic) and $2.57 (diluted) in the same period of 2023[10] - Operating income for the three months ended June 30, 2024, was $1,909 million, a decrease of 29% from $2,684 million in the same period of 2023[10] - Total revenues for the six months ended June 30, 2024, amounted to $15,835 million, compared to $13,091 million in the same period of 2023, marking an increase of approximately 20.9%[45] - Total product sales for the six months ended June 30, 2024, reached $15,159 million, a significant increase from $12,529 million in the same period of 2023, representing a growth of approximately 20.7%[45] Expenses and Liabilities - Research and development expenses increased to $1,447 million for the three months ended June 30, 2024, from $1,113 million in the same period of 2023, representing a 30% increase[10] - Total operating expenses for the three months ended June 30, 2024, were $6,479 million, up from $4,302 million in the same period of 2023, marking a 50% increase[10] - Total liabilities increased from $90,907 million to $97,154 million, an increase of approximately 6.8%[16] - The current portion of long-term debt rose significantly from $1,443 million to $5,528 million, an increase of about 284%[16] - Total long-term debt decreased from $63.17 billion as of December 31, 2023, to $57.12 billion as of June 30, 2024, a reduction of approximately 9.6%[81] Cash Flow and Assets - Cash provided by operating activities for the six months ended June 30, 2024, was $3,148 million, down from $5,173 million in the prior year, a decrease of approximately 39%[25] - Total current assets decreased from $30,332 million as of December 31, 2023, to $27,206 million as of June 30, 2024, a decline of approximately 10.5%[16] - Cash and cash equivalents decreased from $10,944 million to $9,301 million, representing a decrease of about 15%[16] - The company’s inventories decreased from $9,518 million to $7,995 million, a reduction of approximately 16%[16] Acquisitions - The company completed the acquisition of Horizon Therapeutics on October 6, 2023, expanding its product portfolio significantly[7] - Amgen completed the acquisition of Horizon Therapeutics for approximately $27.8 billion, paying $116.50 per share in cash[33] - The acquisition strengthens Amgen's rare disease portfolio by adding first-in-class medicines, including TEPEZZA, KRYSTEXXA, and UPLIZNA[33] - The estimated fair value of developed-product-technology rights and IPR&D intangible assets from the acquisition was $20.7 billion[36] - Goodwill from the acquisition amounted to $3.1 billion, reflecting expected synergies and benefits from the marketed products acquired[39] Tax and Legal Matters - The effective tax rates for the three and six months ended June 30, 2024, were 6.0% and 12.8%, respectively, compared to 14.6% and 16.5% for the same periods in the prior year, indicating a decrease in tax burden[47] - The trial for tax disputes with the IRS regarding years 2010-2012 and 2013-2015 is scheduled to begin on November 4, 2024, with potential implications for future tax liabilities[53] - The company is involved in various legal proceedings and government investigations that may affect its business, as detailed in its Annual Report on Form 10-K for the year ended December 31, 2023[123] - Amgen filed a lawsuit against Celltrion for patent infringement related to its Prolia and XGEVA products, asserting infringement of 29 patents[129] Other Comprehensive Income - The company reported other comprehensive income of $35 million for the three months ended June 30, 2024, compared to a loss of $12 million in the same period of 2023[13] - The balance of accumulated other comprehensive income (loss) was $(155) million as of June 30, 2024, reflecting various adjustments[87] Future Outlook - Future outlook includes continued investment in research and development to drive innovation and market expansion[10]