Last Updated: 22nd November 2022
Amgen Inc. (formerly Applied Molecular Genetics inc.) is an American biopharmaceutical company. Their main focus is on molecular biology and biochemistry to develop DNA technology in the world of healthcare.
Employees: 24,200
Revenue: $25.98bn for FY2021
HQ Location: Thousand Oaks, California
What they do:
They focus on 6 therapeutic areas: Cardiovascular disease, oncology, bone health, neuroscience, nephrology(kidney disease), and inflammation.
Their medicines mainly address diseases where there are limited or viable treatment options available to the patient.
Cardiovascular = heart
Oncology = cancer
Neuroscience = brain
Nephrology = Kidney
71.6% of Q3 revenues came from US, 28.4% from Rest of World
Their vision:
Their main focus is to serve the patient by using the scientific research and biotechnology they have developed and converting them into therapy modalities that can save lives.
A key value is to compete intensely and win:
“We compete against time, past performance and industry rivals to rapidly achieve high quality results. Winning requires taking risks. We cannot be lulled into complacency by previous achievements. Though we compete intensely, we maintain high ethical standards and demand integrity in our dealings with competitors, customers, partners and each other.”
Three things to know right now
Amgen Awards
In 2022, Amgen was announced as one of the World’s Best Employers by Forbes and one of America’s 100 Sustainable Companies by Barron’s.
Growth of medicines already on the market as the pandemic recedes
The growth of new medicines that lower LDL cholesterol in cardiovascular patients, reduce fractures in osteoporosis patients, and medicines helping in the fight against cancer are beginning to be in greater demand across the world as the pandemic starts to recede.
New Medicines Discovered
At least 5 new medicines discovered internally and through acquisitions are all in clinical trials and hope to be launched in 2022.
What does each business unit do?
Innovative Medicines
This unit focuses on 6 major therapy areas: cardiovascular disease, oncology, bone health, neuroscience, nephrology, and inflammation. This unit addresses diseases where there is limited treatment or another treatment is not a viable option.
Transformative Research
This unit focuses on a ‘biology first’ approach where the complex molecular pathway of the disease is determined before they determine what medicine or modality is most likely to work the best.
Biomanufacturing
This unit delivers high-quality medicines that have been produced in it’s manufacturing sites.
Corporate Citizenship
This unit focuses on changing society for the better by removing barriers that limit access to healthcare products and focus on finding ways to minimise the environmental impact during the manufacturing process of their products.
Their financial calendar
Q1: January - March - Earnings 27th April
Q2: April -June - Earnings August 4th
Q3: July - September - Earnings 3rd November
Q4: October - December - Earnings 25th January
Three positives from the last earnings report:
Their medicines generated an 8% volume growth globally. 11 products achieved record quarterly sales showing the products are in demand.
Completed the acquisition of ChemoCenturyx, adding it to their growing product portfolio.
The advanced construction of new environmentally friendly facilities in Ohio and North Carolina.
Three challenges from the last earnings report:
Revenues for the quarter were down by 1% due to the impact of pricing and foreign exchange.
Non -GAAP, cost of sales increased to 16.1% due to changes in the product mix and less Covid -19 antibody shipments.
Challenges since Q2 have been associated with the US dollar strengthening, high inflation, high-interest rates, and the passing of the Inflation Reduction Act.
Next Earnings Report:
Around 25th January 2023
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