Full Press Release Details
THOUSAND OAKS, Calif. , May 2, 2024 /PRNewswire/ -- Amgen (NASDAQ: AMGN ) today announced financial results for the first quarter 2024.
"With many of our innovative products delivering strong growth and promising new medicines advancing through our pipeline, we are excited about delivering attractive long-term growth," said Robert A. Bradway, chairman and chief executive officer.
Key results include:
Product Sales Performance
Total product sales increased 22% for the first quarter of 2024 versus the first quarter of 2023, driven by 25% volume growth.
General Medicine
Otezla and Enbrel typically have lower sales in the first quarter relative to subsequent quarters due to the impact of benefit plan changes, insurance reverifications and increased co-pay expenses as U.S. patients work through deductibles.
Except for TAVNEOS ® , the products listed below were added through the acquisition of Horizon on Oct. 6, 2023 .
Established Products
Product Sales Detail by Product and Geographic Region
| $Millions, except percentages | Q1 '24 | Q1 '23 | YOY Δ | |||||||
| US | ROW | TOTAL | TOTAL | TOTAL | ||||||
| Repatha ® | $ 273 | $ 244 | $ 517 | $ 388 | 33 % | |||||
| Prolia ® | 657 | 342 | 999 | 927 | 8 % | |||||
| EVENITY ® | 236 | 106 | 342 | 254 | 35 % | |||||
| BLINCYTO ® | 153 | 91 | 244 | 194 | 26 % | |||||
| Vectibix ® | 120 | 127 | 247 | 233 | 6 % | |||||
| KYPROLIS ® | 234 | 142 | 376 | 358 | 5 % | |||||
| LUMAKRAS ® /LUMYKRAS ™ | 53 | 29 | 82 | 74 | 11 % | |||||
| XGEVA ® | 366 | 195 | 561 | 536 | 5 % | |||||
| Nplate ® | 190 | 127 | 317 | 362 | (12 %) | |||||
| MVASI ® | 105 | 97 | 202 | 202 | — % | |||||
| TEZSPIRE ® | 173 | — | 173 | 96 | 80 % | |||||
| Otezla ® | 293 | 101 | 394 | 392 | 1 % | |||||
| Enbrel ® | 561 | 6 | 567 | 579 | (2 %) | |||||
| AMJEVITA ® /AMGEVITA ™ | 30 | 138 | 168 | 164 | 2 % | |||||
| TEPEZZA ® ** | 419 | 5 | 424 | — | N/A | |||||
| KRYSTEXXA ® ** | 235 | — | 235 | — | N/A | |||||
| UPLIZNA ® ** | 70 | 10 | 80 | — | N/A | |||||
| TAVNEOS ® | 45 | 6 | 51 | 23 | * | |||||
| Ultra rare products** | 166 | 3 | 169 | — | N/A | |||||
| EPOGEN ® | 41 | — | 41 | 60 | (32 %) | |||||
| Aranesp ® | 100 | 249 | 349 | 355 | (2 %) | |||||
| Parsabiv ® | 65 | 40 | 105 | 91 | 15 % | |||||
| Neulasta ® | 87 | 31 | 118 | 249 | (53 %) | |||||
| Other products*** | 301 | 56 | 357 | 309 | 16 % | |||||
| Total product sales | $ 4,973 | $ 2,145 | $ 7,118 | $ 5,846 | 22 % | |||||
| *Change in excess of 100% | ||||||||||
| **Horizon-acquired products, and the Ultra rare products consist of RAVICTI ® , PROCYSBI ® , ACTIMMUNE ® , BUPHENYL ® , and QUINSAIR ® | ||||||||||
| ***Consists of (i) KANJINTI ® , Aimovig ® , RIABNI ® , Corlanor ® , NEUPOGEN ® , AVSOLA ® , IMLYGIC ® , Sensipar ® /Mimpara ™ , BEKEMV ™ , and WEZLANA ™ /WEZENLA ™ , where Biosimilars total $176 million in Q1 '24 and $121 million in Q1 '23; and (ii) Horizon-acquired products including RAYOS ® , PENNSAID ® , and DUEXIS ® | ||||||||||
| N/A = not applicable |
Operating Expense, Operating Margin and Tax Rate Analysis
On a GAAP basis:
On a non-GAAP basis:
| $Millions, except percentages | GAAP | Non-GAAP | ||||||||||
| Q1 '24 | Q1 '23 | YOY Δ | Q1 '24 | Q1 '23 | YOY Δ | |||||||
| Cost of Sales | $ 3,200 | $ 1,720 | 86 % | $ 1,340 | $ 1,016 | 32 % | ||||||
| % of product sales | 45.0 % | 29.4 % | 15.6 pts | 18.8 % | 17.4 % | 1.4 pts | ||||||
| Research & Development | $ 1,343 | $ 1,058 | 27 % | $ 1,317 | $ 1,044 | 26 % | ||||||
| % of product sales | 18.9 % | 18.1 % | 0.8 pts | 18.5 % | 17.9 % | 0.6 pts | ||||||
| Selling, General & Administrative | $ 1,808 | $ 1,258 | 44 % | $ 1,712 | $ 1,224 | 40 % | ||||||
| % of product sales | 25.4 % | 21.5 % | 3.9 pts | 24.1 % | 20.9 % | 3.2 pts | ||||||
| Other | $ 105 | $ 148 | (29 %) | $ — | $ — | N/A | ||||||
| Total Operating Expenses | $ 6,456 | $ 4,184 | 54 % | $ 4,369 | $ 3,284 | 33 % | ||||||
| Operating Margin | ||||||||||||
| operating income as % of product sales | 13.9 % | 32.9 % | (19.0) pts | 43.2 % | 48.3 % | (5.1) pts | ||||||
| Tax Rate | (66.2) % | 17.5 % | (83.7) pts | 15.4 % | 17.8 % | (2.4) pts | ||||||
| pts: percentage points | ||||||||||||
| N/A = not applicable |
Cash Flow and Balance Sheet
| $Billions, except shares | Q1 '24 | Q1 '23 | YOY Δ | |||
| Operating Cash Flow | $ 0.7 | $ 1.1 | $ (0.4) | |||
| Capital Expenditures | $ 0.2 | $ 0.3 | $ (0.1) | |||
| Free Cash Flow | $ 0.5 | $ 0.7 | $ (0.3) | |||
| Dividends Paid | $ 1.2 | $ 1.1 | $ 0.1 | |||
| Share Repurchases | $ — | $ — | $ — | |||
| Average Diluted Shares (millions) | 536 | 538 | (2) | |||
| Note: Numbers may not add due to rounding |
| $Billions | 3/31/24 | 12/31/23 | YTD Δ | |||
| Cash and Investments | $ 9.7 | $ 10.9 | $ (1.2) | |||
| Debt Outstanding | $ 64.0 | $ 64.6 | $ (0.6) | |||
| Note: Numbers may not add due to rounding |
For the full year 2024, the Company now expects:
First Quarter Product and Pipeline Update
The Company provided the following updates on selected product and pipeline programs:
General Medicine MariTide (maridebart cafraglutide, AMG 133)
Olpasiran (AMG 890)
Oncology Tarlatamab (AMG 757)
Xaluritamig (AMG 509)
LUMAKRAS/LUMYKRAS
Inflammation TEZSPIRE
Rocatinlimab (AMG 451/KHK4083)
Efavaleukin alfa (AMG 592)
Ordesekimab (AMG 714/PRV-015)
AMG 104 (AZD8630)
Rare Disease TAVNEOS
Fipaxalparant (formerly AMG 670/HZN 825)
TEZSPIRE is being developed in collaboration with AstraZeneca. AMG 104 is being developed in collaboration with AstraZeneca Rocatinlimab, formerly AMG 451/KHK4083, is being developed in collaboration with Kyowa Kirin. Ordesekimab, formerly AMG 714 and also known as PRV-015, is being developed in collaboration with Provention Bio, a Sanofi Company. For the purposes of the collaboration, Provention Bio conducts a clinical trial and leads certain development and regulatory activities for the program. Xaluritamig, formerly AMG 509, is being developed pursuant to a research collaboration with Xencor, Inc. IDE397 is an investigational MAT2A inhibitor from IDEAYA Biosciences. OPDIVO is a registered trademark of Bristol-Myers Squibb Company. KEYTRUDA is a registered trademark of Merck & Co., Inc.
Non-GAAP Financial Measures
In this news release, management has presented its operating results for the first quarters of 2024 and 2023, in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and on a non-GAAP basis. In addition, management has presented its full year 2024 EPS and tax guidance in accordance with GAAP and on a non-GAAP basis. These non-GAAP financial measures are computed by excluding certain items related to acquisitions, divestitures, restructuring and certain other items from the related GAAP financial measures. Management has presented Free Cash Flow (FCF), which is a non-GAAP financial measure, for the first quarters of 2024 and 2023. FCF is computed by subtracting capital expenditures from operating cash flow, each as determined in accordance with GAAP.
The Company believes that its presentation of non-GAAP financial measures provides useful supplementary information to and facilitates additional analysis by investors. The Company uses certain non-GAAP financial measures to enhance an investor's overall understanding of the financial performance and prospects for the future of the Company's normal and recurring business activities by facilitating comparisons of results of normal and recurring business operations among current, past and future periods. The Company believes that FCF provides a further measure of the Company's liquidity.
The Company uses the non-GAAP financial measures set forth in the news release in connection with its own budgeting and financial planning internally to evaluate the performance of the business, including to allocate resources and to evaluate results relative to incentive compensation targets. The non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
Amgen discovers, develops, manufactures and delivers innovative medicines to help millions of patients in their fight against some of the world's toughest diseases. More than 40 years ago, Amgen helped to establish the biotechnology industry and remains on the cutting-edge of innovation, using technology and human genetic data to push beyond what's known today. Amgen is advancing a broad and deep pipeline that builds on its existing portfolio of medicines to treat cancer, heart disease, osteoporosis, inflammatory diseases and rare diseases.
In 2024, Amgen was named one of the "World's Most Innovative Companies" by Fast Company and one of "America's Best Large Employers" by Forbes, among other external recognitions . Amgen is one of the 30 companies that comprise the Dow Jones Industrial Average ® , and it is also part of the Nasdaq-100 Index ® , which includes the largest and most innovative non-financial companies listed on the Nasdaq Stock Market based on market capitalization.
For more information, visit Amgen.com and follow Amgen on X , LinkedIn , Instagram , TikTok , YouTube and Threads .
Forward-Looking Statements
This news release contains forward-looking statements that are based on the current expectations and beliefs of Amgen. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including any statements on the outcome, benefits and synergies of collaborations, or potential collaborations, with any other company (including BeiGene, Ltd. or Kyowa Kirin Co., Ltd.), the performance of Otezla ® (apremilast) (including anticipated Otezla sales growth and the timing of non-GAAP EPS accretion), our acquisitions of Teneobio, Inc., ChemoCentryx, Inc., or Horizon (including the prospective performance and outlook of Horizon's business, performance and opportunities and any potential strategic benefits, synergies or opportunities expected as a result of such acquisition, and any projected impacts from the Horizon acquisition on our acquisition-related expenses going forward), as well as estimates of revenues, operating margins, capital expenditures, cash, other financial metrics, expected legal, arbitration, political, regulatory or clinical results or practices, customer and prescriber patterns or practices, reimbursement activities and outcomes, effects of pandemics or other widespread health problems on our business, outcomes, progress, and other such estimates and results. Forward-looking statements involve significant risks and uncertainties, including those discussed below and more fully described in the Securities and Exchange Commission reports filed by Amgen, including our most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and current reports on Form 8-K. Unless otherwise noted, Amgen is providing this information as of the date of this news release and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
No forward-looking statement can be guaranteed and actual results may differ materially from those we project. Our results may be affected by our ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments involving current and future products, sales growth of recently launched products, competition from other products including biosimilars, difficulties or delays in manufacturing our products and global economic conditions. In addition, sales of our products are affected by pricing pressure, political and public scrutiny and reimbursement policies imposed by third-party payers, including governments, private insurance plans and managed care providers and may be affected by regulatory, clinical and guideline developments and domestic and international trends toward managed care and healthcare cost containment. Furthermore, our research, testing, pricing, marketing and other operations are subject to extensive regulation by domestic and foreign government regulatory authorities. We or others could identify safety, side effects or manufacturing problems with our products, including our devices, after they are on the market. Our business may be impacted by government investigations, litigation and product liability claims. In addition, our business may be impacted by the adoption of new tax legislation or exposure to additional tax liabilities. If we fail to meet the compliance obligations in the corporate integrity agreement between us and the U.S. government, we could become subject to significant sanctions. Further, while we routinely obtain patents for our products and technology, the protection offered by our patents and patent applications may be challenged, invalidated or circumvented by our competitors, or we may fail to prevail in present and future intellectual property litigation. We perform a substantial amount of our commercial manufacturing activities at a few key facilities, including in Puerto Rico , and also depend on third parties for a portion of our manufacturing activities, and limits on supply may constrain sales of certain of our current products and product candidate development. An outbreak of disease or similar public health threat, such as COVID-19, and the public and governmental effort to mitigate against the spread of such disease, could have a significant adverse effect on the supply of materials for our manufacturing activities, the distribution of our products, the commercialization of our product candidates, and our clinical trial operations, and any such events may have a material adverse effect on our product development, product sales, business and results of operations. We rely on collaborations with third parties for the development of some of our product candidates and for the commercialization and sales of some of our commercial products. In addition, we compete with other companies with respect to many of our marketed products as well as for the discovery and development of new products. Discovery or identification of new product candidates or development of new indications for existing products cannot be guaranteed and movement from concept to product is uncertain; consequently, there can be no guarantee that any particular product candidate or development of a new indication for an existing product will be successful and become a commercial product. Further, some raw materials, medical devices and component parts for our products are supplied by sole third-party suppliers. Certain of our distributors, customers and payers have substantial purchasing leverage in their dealings with us. The discovery of significant problems with a product similar to one of our products that implicate an entire class of products could have a material adverse effect on sales of the affected products and on our business and results of operations. Our efforts to collaborate with or acquire other companies, products or technology, and to integrate the operations of companies or to support the products or technology we have acquired, may not be successful. There can be no guarantee that we will be able to realize any of the strategic benefits, synergies or opportunities arising from the Horizon acquisition, and such benefits, synergies or opportunities may take longer to realize than expected. We may not be able to successfully integrate Horizon, and such integration may take longer, be more difficult or cost more than expected. A breakdown, cyberattack or information security breach of our information technology systems could compromise the confidentiality, integrity and availability of our systems and our data. Our stock price is volatile and may be affected by a number of events. Our business and operations may be negatively affected by the failure, or perceived failure, of achieving our environmental, social and governance objectives. The effects of global climate change and related natural disasters could negatively affect our business and operations. Global economic conditions may magnify certain risks that affect our business. Our business performance could affect or limit the ability of our Board of Directors to declare a dividend or our ability to pay a dividend or repurchase our common stock. We may not be able to access the capital and credit markets on terms that are favorable to us, or at all.
CONTACT: Amgen, Thousand Oaks Jessica Akopyan , 805-440-5721 (media) Justin Claeys , 805-313-9775 (investors)
| Amgen Inc. Consolidated Statements of (Loss) Income - GAAP (In millions, except per-share data) (Unaudited) | |||
| Three months ended March 31, | |||
| 2024 | 2023 | ||
| Revenues: | |||
| Product sales | $ 7,118 | $ 5,846 | |
| Other revenues | 329 | 259 | |
| Total revenues | 7,447 | 6,105 | |
| Operating expenses: | |||
| Cost of sales | 3,200 | 1,720 | |
| Research and development | 1,343 | 1,058 | |
| Selling, general and administrative | 1,808 | 1,258 | |
| Other | 105 | 148 | |
| Total operating expenses | 6,456 | 4,184 | |
| Operating income | 991 | 1,921 | |
| Other income (expense): | |||
| Interest expense, net | (824) | (543) | |
| Other (expense) income, net | (235) | 2,064 | |
| (Loss) income before income taxes | (68) | 3,442 | |
| Provision for income taxes | 45 | 601 | |
| Net (loss) income | $ (113) | $ 2,841 | |
| (Loss) earnings per share: | |||
| Basic | $ (0.21) | $ 5.32 | |
| Diluted | $ (0.21) | $ 5.28 | |
| Weighted-average shares used in calculation of (loss) earnings per share: | |||
| Basic | 536 | 534 | |
| Diluted | 536 | 538 |
| Amgen Inc. Consolidated Balance Sheets - GAAP (In millions) | |||
| March 31, | December 31, | ||
| 2024 | 2023 | ||
| (Unaudited) | |||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $ 9,708 | $ 10,944 | |
| Trade receivables, net | 6,776 | 7,268 | |
| Inventories | 8,724 | 9,518 | |
| Other current assets | 2,821 | 2,602 | |
| Total current assets | 28,029 | 30,332 | |
| Property, plant and equipment, net | 6,002 | 5,941 | |
| Intangible assets, net | 31,372 | 32,641 | |
| Goodwill | 18,570 | 18,629 | |
| Other noncurrent assets | 9,007 | 9,611 | |
| Total assets | $ 92,980 | $ 97,154 | |
| Liabilities and Stockholders' Equity | |||
| Current liabilities: | |||
| Accounts payable and accrued liabilities | $ 15,755 | $ 16,949 | |
| Current portion of long-term debt | 3,959 | 1,443 | |
| Total current liabilities | 19,714 | 18,392 | |
| Long-term debt | 60,061 | 63,170 | |
| Long-term deferred tax liabilities | 1,862 | 2,354 | |
| Long-term tax liabilities | 3,964 | 4,680 | |
| Other noncurrent liabilities | 2,357 | 2,326 | |
| Total stockholders' equity | 5,022 | 6,232 | |
| Total liabilities and stockholders' equity | $ 92,980 | $ 97,154 | |
| Shares outstanding | 536 | 535 |
| Amgen Inc. GAAP to Non-GAAP Reconciliations (Dollars in millions) (Unaudited) | |||
| Three months ended March 31, | |||
| 2024 | 2023 | ||
| GAAP cost of sales | $ 3,200 | $ 1,720 | |
| Adjustments to cost of sales: | |||
| Acquisition-related expenses (a) | (1,860) | (669) | |
| Certain net charges pursuant to our restructuring and cost savings initiatives | — | (35) | |
| Total adjustments to cost of sales | (1,860) | (704) | |
| Non-GAAP cost of sales | $ 1,340 | $ 1,016 | |
| GAAP cost of sales as a percentage of product sales | 45.0 % | 29.4 % | |
| Acquisition-related expenses (a) | (26.2) | (11.4) | |
| Certain net charges pursuant to our restructuring and cost savings initiatives | 0.0 | (0.6) | |
| Non-GAAP cost of sales as a percentage of product sales | 18.8 % | 17.4 % | |
| GAAP research and development expenses | $ 1,343 | $ 1,058 | |
| Adjustments to research and development expenses: | |||
| Acquisition-related expenses (b) | (26) | (14) | |
| Non-GAAP research and development expenses | $ 1,317 | $ 1,044 | |
| GAAP research and development expenses as a percentage of product sales | 18.9 % | 18.1 % | |
| Acquisition-related expenses (b) | (0.4) | (0.2) | |
| Non-GAAP research and development expenses as a percentage of product sales | 18.5 % | 17.9 % | |
| GAAP selling, general and administrative expenses | $ 1,808 | $ 1,258 | |
| Adjustments to selling, general and administrative expenses: | |||
| Acquisition-related expenses (b) | (96) | (34) | |
| Non-GAAP selling, general and administrative expenses | $ 1,712 | $ 1,224 | |
| GAAP selling, general and administrative expenses as a percentage of product sales | 25.4 % | 21.5 % | |
| Acquisition-related expenses (b) | (1.3) | (0.6) | |
| Non-GAAP selling, general and administrative expenses as a percentage of product sales | 24.1 % | 20.9 % | |
| GAAP operating expenses | $ 6,456 | $ 4,184 | |
| Adjustments to operating expenses: | |||
| Adjustments to cost of sales | (1,860) | (704) | |
| Adjustments to research and development expenses | (26) | (14) | |
| Adjustments to selling, general and administrative expenses | (96) | (34) | |
| Certain net charges pursuant to our restructuring and cost savings initiatives (c) | 1 | (141) | |
| Certain other expenses (d) | (106) | (7) | |
| Total adjustments to operating expenses | (2,087) | (900) | |
| Non-GAAP operating expenses | $ 4,369 | $ 3,284 | |
| Three months ended March 31, | |||
| 2024 | 2023 | ||
| GAAP operating income | $ 991 | $ 1,921 | |
| Adjustments to operating expenses | 2,087 | 900 | |
| Non-GAAP operating income | $ 3,078 | $ 2,821 | |
| GAAP operating income as a percentage of product sales | 13.9 % | 32.9 % | |
| Adjustments to cost of sales | 26.2 | 12.0 | |
| Adjustments to research and development expenses | 0.4 | 0.2 | |
| Adjustments to selling, general and administrative expenses | 1.3 | 0.6 | |
| Certain net charges pursuant to our restructuring and cost savings initiatives (c) | 0.0 | 2.5 | |
| Certain other expenses (d) | 1.4 | 0.1 | |
| Non-GAAP operating income as a percentage of product sales | 43.2 % | 48.3 % | |
| GAAP interest expense, net | $ (824) | $ (543) | |
| Adjustments to interest expense, net: | |||
| Interest expense on acquisition-related debt (e) | — | 123 | |
| Non-GAAP interest expense, net | $ (824) | $ (420) | |
| GAAP other (expense) income, net | $ (235) | $ 2,064 | |
| Adjustments to other (expense) income, net | |||
| Interest income and other expenses on acquisition-related debt (e) | — | (6) | |
| Net losses (gains) from equity investments (f) | 510 | (1,853) | |
| Total adjustments to other (expense) income, net | 510 | (1,859) | |
| Non-GAAP other income, net | $ 275 | $ 205 | |
| GAAP (loss) income before income taxes | $ (68) | $ 3,442 | |
| Adjustments to (loss) income before income taxes: | |||
| Adjustments to operating expenses | 2,087 | 900 | |
| Adjustments to interest expense, net | — | 123 | |
| Adjustments to other (expense) income, net | 510 | (1,859) | |
| Total adjustments to (loss) income before income taxes | 2,597 | (836) | |
| Non-GAAP income before income taxes | $ 2,529 | $ 2,606 | |
| GAAP provision for income taxes | $ 45 | $ 601 | |
| Adjustments to provision for income taxes: | |||
| Income tax effect of the above adjustments (g) | 359 | (117) | |
| Other income tax adjustments (h) | (15) | (19) | |
| Total adjustments to provision for income taxes | 344 | (136) | |
| Non-GAAP provision for income taxes | $ 389 | $ 465 | |
| GAAP tax as a percentage of income before taxes | (66.2) % | 17.5 % | |
| Adjustments to provision for income taxes: | |||
| Income tax effect of the above adjustments (g) | 82.2 | 1.0 | |
| Other income tax adjustments (h) | (0.6) | (0.7) | |
| Total adjustments to provision for income taxes | 81.6 | 0.3 | |
| Non-GAAP tax as a percentage of income before taxes | 15.4 % | 17.8 % | |
| GAAP net (loss) income | $ (113) | $ 2,841 | |
| Adjustments to net (loss) income: | |||
| Adjustments to (loss) income before income taxes, net of the income tax effect | 2,238 | (719) | |
| Other income tax adjustments (h) | 15 | 19 | |
| Total adjustments to net (loss) income | 2,253 | (700) | |
| Non-GAAP net income | $ 2,140 | $ 2,141 | |
| Note: Numbers may not add due to rounding |
| Amgen Inc. GAAP to Non-GAAP Reconciliations (In millions, except per-share data) (Unaudited) | |||||||
| The following table presents the computations for GAAP and non-GAAP diluted earnings per share: | |||||||
| Three months ended March 31, 2024 | Three months ended March 31, 2023 | ||||||
| GAAP | Non-GAAP | GAAP | Non-GAAP | ||||
| Net (loss) income | $ (113) | $ 2,140 | $ 2,841 | $ 2,141 | |||
| Shares (Denominator): | |||||||
| Weighted-average shares for basic (loss) earnings per share | 536 | 536 | 534 | 534 | |||
| Effect of dilutive securities (i) | — | 5 | 4 | 4 | |||
| Weighted-average shares for diluted (loss) earnings per share (i) | 536 | 541 | 538 | 538 | |||
| Diluted (loss) earnings per share | $ (0.21) | $ 3.96 | $ 5.28 | $ 3.98 |
| (a) | The adjustments related primarily to noncash amortization of intangible assets and fair value step-up of inventory acquired from business acquisitions. | |
| (b) | For the three months ended March 31, 2024, the adjustments related primarily to acquisition-related costs related to our Horizon acquisition. For the three months ended March 31, 2023, the adjustments related primarily to noncash amortization of intangible assets from business acquisitions. | |
| (c) | For the three months ended March 31, 2023, the adjustments related primarily to separation costs associated with our restructuring plan initiated in early 2023. | |
| (d) | For the three months ended March 31, 2024, the adjustments related primarily to a net impairment charge for an in-process R&D asset and changes in contingent consideration liabilities, both related to our Teneobio, Inc. acquisition from 2021. For the three months ended March 31, 2023, the adjustments related to changes in contingent consideration liabilities. | |
| (e) | For the three months ended March 31, 2023, the adjustments included (i) interest expense and income on senior notes issued in March 2023 and (ii) debt issuance costs and other fees related to our bridge credit and term loan credit agreements, incurred prior to the closing of our acquisition of Horizon. | |
| (f) | For the three months ended March 31, 2024 and 2023, the adjustments related primarily to our BeiGene, Ltd. equity fair value adjustment. | |
| (g) | The tax effect of the adjustments between our GAAP and non-GAAP results takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). Generally, this results in a tax impact at the U.S. marginal tax rate for certain adjustments, including the majority of amortization of intangible assets and certain gains and losses on our investments in equity securities, whereas the tax impact of other adjustments, including the amortization of acquired inventory and expenses related to restructuring and cost savings initiatives, depends on whether the amounts are deductible in the respective tax jurisdictions and the applicable tax rate(s) in those jurisdictions. Due to these factors, the effective tax rate for the adjustments to our GAAP income before income taxes for the three months ended March 31, 2024, was 13.8% compared to 14.0% for the corresponding period of the prior year. | |
| (h) | The adjustments related to certain acquisition items, prior period and other items excluded from GAAP earnings. | |
| (i) | During periods of net loss, diluted loss per share is equal to basic loss per share as the anti-dilutive effect of potential common shares is disregarded. |
| Amgen Inc. Reconciliations of Cash Flows (In millions) (Unaudited) | |||
| Three months ended March 31, | |||
| 2024 | 2023 | ||
| Net cash provided by operating activities | $ 689 | $ 1,064 | |
| Net cash (used in) provided by investing activities | (217) | 1,358 | |
| Net cash (used in) provided by financing activities | (1,708) | 21,509 | |
| (Decrease) increase in cash and cash equivalents | (1,236) | 23,931 | |
| Cash and cash equivalents at beginning of period | 10,944 | 7,629 | |
| Cash and cash equivalents at end of period | $ 9,708 | $ 31,560 | |
| Three months ended March 31, | |||
| 2024 | 2023 | ||
| Net cash provided by operating activities | $ 689 | $ 1,064 | |
| Capital expenditures | (230) | (344) | |
| Free cash flow | $ 459 | $ 720 |
| Amgen Inc. Reconciliation of GAAP EPS Guidance to Non-GAAP EPS Guidance for the Year Ending December 31, 2024 (Unaudited) | ||||
| GAAP diluted EPS guidance | $ 7.15 | — | $ 8.40 | |
| Known adjustments to arrive at non-GAAP*: | ||||
| Acquisition-related expenses (a) | 10.98 | — | 11.03 | |
| Net losses from equity investments | 0.74 | |||
| Other | 0.08 | |||
| Non-GAAP diluted EPS guidance | $ 19.00 | — | $ 20.20 |
* The known adjustments are presented net of their related tax impact, which amount to approximately $2.61 per share.
(a) The adjustments primarily include noncash amortization of intangible assets and fair value step-up of inventory acquired in business combinations.
Our GAAP diluted EPS guidance does not include the effect of GAAP adjustments triggered by events that may occur subsequent to this press release such as acquisitions, asset impairments, litigation, changes in fair value of our contingent consideration obligations and changes in fair value of our equity investments.
| Reconciliation of GAAP Tax Rate Guidance to Non-GAAP Tax Rate Guidance for the Year Ending December 31, 2024 (Unaudited) | ||||
| GAAP tax rate guidance | 9.5 % | — | 11.0 % | |
| Tax rate of known adjustments discussed above | 5.0 % | — | 5.5 % | |
| Non-GAAP tax rate guidance | 15.0 % | — | 16.0 % |