Amgen(US:AMGN)2025-05-01 22:54Financial Performance - Total revenues for Q1 2025 were $8,149 million, a 9.4% increase from $7,447 million in Q1 2024[14] - Product sales increased to $7,873 million in Q1 2025, up 10.6% from $7,118 million in Q1 2024[14] - Net income for Q1 2025 was $1,730 million, compared to a net loss of $113 million in Q1 2024[14] - Earnings per share (EPS) for Q1 2025 were $3.22 (basic) and $3.20 (diluted), a significant improvement from a loss of $0.21 per share in Q1 2024[14] - Operating income rose to $1,178 million in Q1 2025, up from $991 million in Q1 2024, reflecting an 18.8% increase[14] - Segment net income for the three months ended March 31, 2025, was $1,730 million, compared to a net loss of $113 million in the same period of 2024[38] - Total product sales increased by 11% for the three months ended March 31, 2025, reaching $7,873 million, driven by a volume growth of 14%[140] - U.S. product sales grew by 14% to $5,662 million, while the Rest of the World (ROW) sales increased by 3% to $2,211 million[140] Cash and Assets - Cash and cash equivalents decreased to $8,810 million as of March 31, 2025, down from $11,973 million at the end of 2024[18] - Total assets decreased to $89,367 million as of March 31, 2025, compared to $91,839 million at the end of 2024[18] - Total stockholders' equity increased to $6,207 million as of March 31, 2025, up from $5,877 million at the end of 2024[18] - The total interest-bearing securities as of March 31, 2025, amounted to $8.302 billion, a decrease from $11.486 billion as of December 31, 2024[54] - The total inventories as of March 31, 2025, were $6.729 billion, a decrease from $6.998 billion as of December 31, 2024[65] Expenses and Costs - Operating expenses increased by 8% to $6,971 million, influenced by an impairment charge related to the Otezla intangible asset[146] - Research and development expenses for the three months ended March 31, 2025, were $1,486 million, compared to $1,343 million in 2024, reflecting a 10.6% increase[38] - Manufacturing cost of sales for the three months ended March 31, 2025, was $2,528 million, down from $2,814 million in 2024, a decrease of 10.1%[38] - Selling, general and administrative expenses decreased by 7% to $1,687 million for the three months ended March 31, 2025, due to lower commercial product-related expenses[177] - Cost of sales decreased to 36.4% of total revenues for the three months ended March 31, 2025, down from 43.0% in 2024, primarily due to lower amortization expenses and manufacturing costs[175] Debt and Financing - Total principal amount of debt decreased to $58.945 billion as of March 31, 2025, from $61.778 billion as of December 31, 2024[72] - Debt repayments during the three months ended March 31, 2025, totaled $2.5 billion, compared to no repayments in the same period of the prior year[74] - The total carrying value of debt as of March 31, 2025, was $57.381 billion, down from $60.099 billion as of December 31, 2024[72] - Cash used in financing activities for Q1 2025 included debt repayment of $2.5 billion, extinguishment of debt of $301 million, and dividend payments of $1.3 billion[205] Dividends and Shareholder Returns - The company declared dividends of $2.38 per share in Q1 2025, totaling $1,280 million[20] - The Board of Directors declared a quarterly cash dividend of $2.38 per share in March 2025, to be paid in June 2025[78] - As of March 31, 2025, $6.8 billion of authorization remained available under the stock repurchase program[77] Legal and Regulatory Matters - The company is involved in various legal proceedings, which may have a material adverse effect on its consolidated results of operations, financial position, or cash flows[108] - A confidential settlement was reached with Fresenius Kabi USA, allowing them to launch denosumab biosimilar products in the U.S. as early as June 30, 2025[116] - The trial for the antitrust action against Amgen is scheduled to begin on May 5, 2025[120] Research and Development - The FDA approved UPLIZNA for the treatment of Immunoglobulin G4-related disease (IgG4-RD) in April 2025, marking it as the first FDA-approved treatment for this condition[138] - The ongoing ROCKET Phase 3 clinical trial program for rocatinlimab met its co-primary endpoints, indicating promising results for moderate to severe atopic dermatitis[136] Market Risks and Controls - The company is exposed to price risk on equity securities in its investment portfolio, which includes investments in BeiGene and Neumora[209] - The Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of March 31, 2025[210] - No changes in internal control over financial reporting occurred during the fiscal quarter ended March 31, 2025, that materially affected the internal control[211]