Amgen net worth has seen significant developments in 2024. At Ando Money, we dive deep into Amgen’s financial performance and revenue drivers.
From product sales to acquisitions, we break down the numbers that contribute to the company’s overall growth.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Amgen |
| Full Name | Amgen Inc. |
| Industry | Biotechnology / Pharmaceuticals |
| Traded As | NASDAQ: AMGN |
| ISIN | US0311621009 |
| Founded | 1980 |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | Thousand Oaks, California |
| Chief Executive Officer | Robert A. Bradway |
| Number of Employees | 26,700 |
| Market Cap | $173.37 Billion |
| Total Assets | $90.9 Billion |
| Total Equity | $5.925 Billion |
| Revenue | $8.4 Billion (Q2 2024) |
| Net Income | $746 Million (Q2 2024) |
What is the Net Worth/Market Cap Of Amgen in 2024?
As of 2024, Amgen’s market cap stands at $173.37 billion. It’s currently the world’s 86th most valuable company, making it a significant player in the biotechnology and pharmaceutical sectors.
This market capitalization reflects Amgen’s solid financial standing compared to its competitors and partners.
Below is a list of entities related to Amgen that you might want to explore for a better understanding of the industry’s top performers.
- Johnson & Johnson
- Pfizer
- AbbVie
- Gilead Sciences
- Novartis
- Roche
- Sanofi
- Biogen
- Merck & Co.
- Bristol-Myers Squibb
If you’re curious to see how Amgen stacks up among the wealthiest companies globally, explore our list of the richest companies.
Financial Performance Overview
Amgen‘s financial performance in 2024 reflects a strong growth trajectory, with total revenues increasing by 20% in Q2 to reach $8.4 billion.
Key drivers include product sales, which saw a 20% increase largely due to a 26% growth in volume.
The acquisition of Horizon Therapeutics also played a role, though excluding Horizon’s contribution, Amgen’s product sales still grew by 5%, driven primarily by a 10% volume increase.
Contributions of Product Portfolio to Revenue
Amgen’s product portfolio has been a pivotal factor in driving revenue growth.
In Q2 2024, twelve products achieved double-digit sales growth. Notably, Prolia and Repatha saw significant increases, with sales rising by 13% and 25% respectively.
Rare disease medicines also contributed substantially, delivering $1.1 billion in sales. This segment includes emerging treatments like TEPEZZA, KRYSTEXXA, and UPLIZNA.
The firm’s focus on innovative treatments has allowed it to penetrate various markets effectively.
The Impact of Acquisitions on Financial Performance
The acquisition of Horizon Therapeutics, completed in late 2023, has significantly influenced Amgen’s financial performance.
This strategic move contributed to higher operating expenses but also expanded the firm’s reach into rare disease treatments. The acquisition has impacted both GAAP and non-GAAP metrics.
For instance, the firm’s GAAP operating income decreased from $2.7 billion to $1.9 billion, affected by amortization and increased expenses related to the acquisition.
However, non-GAAP operating income rose to $3.9 billion, indicating strong underlying performance.
Revenue Breakdown by Geographic Region
When considering Amgen’s financial performance, it’s important to understand the revenue split between U.S. and international markets.
Domestic sales reached $5.84 billion, with international sales contributing an additional $2.2 billion.
The U.S. market remains the primary revenue driver, but growth in international regions has also been noteworthy, especially in areas where innovative treatments are gaining traction.
Impact of Rare Disease Products on Firm’s Revenue
Rare disease products are a key segment of Amgen’s revenue stream.
With the integration of Horizon’s portfolio, treatments like TEPEZZA generated $479 million in sales, while KRYSTEXXA and UPLIZNA added $294 million and $92 million respectively.
These products have not only diversified Amgen’s offerings but also allowed the company to tap into lucrative niche markets that contribute significantly to overall growth.
Financial Performance of Established Products
Amgen’s mature product lines also play a crucial role in its financial results.
Though some established products like EPOGEN and Neulasta faced declines in sales due to market competition and changes in demand, others like XGEVA and BLINCYTO continued to show solid growth.
As a group, the established products generated around $591 million in sales, highlighting their ongoing value to the company’s bottom line.
Non-GAAP vs. GAAP Financial Results
Amgen’s financial performance is often measured using both GAAP and non-GAAP metrics.
While GAAP EPS decreased from $2.57 to $1.38, largely due to increased operating expenses and acquisition costs, the non-GAAP EPS was nearly stable at $4.97.
These adjustments provide a clearer view of Amgen’s operational health, showcasing the company’s strong performance aside from acquisition-related expenses.
Cost Structure and Its Effect on Profit Margins
Amgen’s operating expenses increased by 51% on a GAAP basis, primarily due to costs related to Horizon acquisition assets and increased R&D spending.
As a result, the GAAP operating margin dropped to 23.7%. On a non-GAAP basis, expenses increased by 30%, resulting in a margin of 48.2%.
Despite these costs, Amgen maintains a strong profitability profile and continues to invest in R&D and product innovation.
Free Cash Flow and Capital Allocation Strategy
Amgen generated $2.2 billion in free cash flow in Q2 2024, which is a decrease from $3.8 billion in the prior year, primarily due to changes in tax payment timing.
This healthy cash flow supports the firm’s capital allocation strategy, including debt reduction of $1.4 billion in the second quarter and a dividend payment of $2.25 per share.
Such financial moves highlight Amgen’s commitment to balancing growth with shareholder returns.
Long-Term Revenue Outlook and Financial Guidance for 2024
Looking forward to the remainder of 2024, Amgen anticipates total revenues in the range of $32.8 to $33.8 billion.
GAAP EPS is projected between $6.57 to $7.62, while non-GAAP EPS is expected to range from $19.10 to $20.10. This guidance reflects Amgen’s strong market position and strategic efforts to enhance growth and profitability.
FAQs About Amgen
How did Amgen’s Revenue Grow in 2024?
Amgen saw a 20% increase in total revenues in Q2 2024, primarily driven by a 26% volume growth in product sales and acquisitions like Horizon Therapeutics.
What Contributed to Amgen’s Increase in Operating Expenses?
Operating expenses increased due to the Horizon acquisition, higher R&D investments, and increased SG&A, resulting in a 51% increase on a GAAP basis.
How Significant Are Amgen’s Rare Disease Products to Their Revenue?
Rare disease products contributed over $1.1 billion in Q2 2024, driven by treatments like TEPEZZA, KRYSTEXXA, and UPLIZNA.
What Is Amgen’s Free Cash Flow Status?
Amgen’s free cash flow stood at $2.2 billion for Q2 2024, which is slightly lower than the previous year due to the timing of tax payments.
Conclusion
Amgen’s financial performance in 2024 underscores the company’s strong market position and strategic growth. To explore more content like this, please leave a comment or visit Ando Money.
