Amgen(US:AMGN)2025-11-04 23:59Financial Performance - Total revenues for Q3 2025 reached $9,557 million, a 12.4% increase from $8,503 million in Q3 2024[17] - Product sales increased to $9,137 million in Q3 2025, up 12.1% from $8,151 million in Q3 2024[17] - Net income for Q3 2025 was $3,216 million, representing a 13.6% increase compared to $2,830 million in Q3 2024[18] - Earnings per share (EPS) for Q3 2025 were $5.98 (basic) and $5.93 (diluted), compared to $5.27 and $5.22 in Q3 2024, reflecting increases of 13.5% and 13.6% respectively[17] - Comprehensive income for Q3 2025 was $3,338 million, compared to $2,649 million in Q3 2024, marking an increase of 26.0%[18] - Net income for the nine months ended September 30, 2025, was $6,378 million, a significant increase from $3,463 million in the same period of 2024, representing an 84.5% growth[43] - Total revenues for the nine months ended September 30, 2025, reached $26,885 million, up from $24,338 million in 2024, reflecting a 10.5% increase[43] Research and Development - Research and development expenses rose to $1,900 million in Q3 2025, a 31.0% increase from $1,450 million in Q3 2024[17] - Research and development expenses for the nine months ended September 30, 2025, totaled $5,130 million, an increase from $4,240 million in 2024, representing a 21.0% rise[43] - The company expects to continue to grow its spending on Later-Stage Clinical Programs as it advances its pipeline[197] Cash and Assets - Total assets as of September 30, 2025, were $90,141 million, a slight decrease from $91,839 million at the end of 2024[21] - Cash and cash equivalents decreased to $9,445 million from $11,973 million at the end of 2024[21] - Cash and cash equivalents at the end of the period were $9,445 million, up from $9,011 million at the end of the same period in 2024[27] Debt and Liabilities - Long-term debt decreased to $52,434 million from $56,549 million at the end of 2024, indicating a reduction in leverage[21] - Total principal amount of debt as of September 30, 2025, is $56.039 billion, down from $61.778 billion as of December 31, 2024[81] - Total carrying value of debt is $54.587 billion as of September 30, 2025, compared to $60.099 billion as of December 31, 2024[81] - Debt repayments for the three months ended September 30, 2025, totaled $1.5 billion, a decrease from $2.2 billion in the same period of 2024[83] - During the nine months ended September 30, 2025, debt repayments amounted to $5.0 billion, up from $3.6 billion in the same period of 2024[83] Dividends - The company declared dividends of $2.38 per share in Q3 2025, totaling $1,308 million[23] - Dividends paid during the nine months ended September 30, 2025, were $3,841 million, compared to $3,627 million in 2024, reflecting a 5.9% increase[27] - Quarterly cash dividends of $2.38 per share were declared in August 2025, March 2025, and December 2024, with the next payment scheduled for December 2025[88] Product Sales and Revenue Growth - Total product sales increased by 12% and 11% for the three and nine months ended September 30, 2025, respectively, driven by volume growth of 14% for both periods[153] - U.S. product sales reached $6,751 million for the three months ended September 30, 2025, up 13% from $5,979 million in 2024[152] - Prolia generated $1,139 million in revenue for the three months ended September 30, 2025, up from $1,045 million in 2024, reflecting a growth of 9.0%[45] - Repatha's revenue for the three months ended September 30, 2025, was $794 million, compared to $567 million in 2024, marking a significant increase of 40.1%[45] Legal and Regulatory Matters - The company has reached confidential settlement agreements regarding patent litigation with Samsung and Biocon, allowing them to launch their biosimilar products in the U.S.[122][126] - The company is involved in various legal proceedings and government investigations, which may have material adverse effects on its consolidated results of operations, financial position, or cash flows[118] - The FDA broadened the approved use of Repatha to include adults at increased risk for major adverse cardiovascular events due to uncontrolled low-density lipoprotein cholesterol[148] Economic and Market Conditions - Uncertain macroeconomic conditions, including inflation and rising healthcare costs, continue to pose challenges to Amgen's business[144] - The IRA and 340B Program are expected to negatively affect Amgen's business, with ENBREL and Otezla selected for Medicare price setting beginning in 2026 and 2027, respectively[145]