Loading...
•
Jun 30, 2020
Amgen Q2 2020 Earnings Report
Amgen's financial performance in Q2 2020 showed revenue growth despite challenges posed by the COVID-19 pandemic, driven by increased unit demand and strategic acquisitions.
Key Takeaways
Amgen reported a 6% increase in total revenues to $6.2 billion for Q2 2020, driven by higher unit demand, although partially offset by lower net selling prices. GAAP EPS decreased by 15% to $3.05, primarily due to amortization costs from the Otezla acquisition, while non-GAAP EPS increased by 7% to $4.25. The company reaffirmed its 2020 total revenue guidance at $25.0-$25.6 billion and revised its EPS guidance to $10.73-$11.43 on a GAAP basis and $15.10-$15.75 on a non-GAAP basis.
Total revenues increased by 6% to $6.2 billion, driven by higher unit demand.
GAAP EPS decreased by 15% to $3.05, impacted by Otezla acquisition costs.
Non-GAAP EPS increased by 7% to $4.25, driven by increased revenues and fewer weighted-average shares outstanding.
Free cash flow increased to $2.7 billion, driven primarily by the timing of tax payments.
Amgen
Amgen
Amgen Revenue by Segment
Revenue by Segment
Repatha Revenue
CapyFin.comEVENITY Revenue
CapyFin.comProlia Revenue
CapyFin.comOtezla Revenue
CapyFin.comEnbrel Revenue
CapyFin.comKyprolis Revenue
CapyFin.comXGEVA Revenue
CapyFin.comVectibix Revenue
CapyFin.comNplate Revenue
CapyFin.comBLINCYTO Revenue
CapyFin.comAranesp Revenue
CapyFin.comParsabiv Revenue
CapyFin.comAMJEVITA / AMGEVITA Revenue
CapyFin.comMVASI Revenue
CapyFin.comNeulasta Revenue
CapyFin.comOther products Revenue
CapyFin.com Forward Guidance
Amgen reaffirmed its 2020 total revenue guidance at $25.0 billion to $25.6 billion, and revised its EPS guidance to $10.73-$11.43 on a GAAP basis and $15.10-$15.75 on a non-GAAP basis.
Positive Outlook
- Total revenues are expected to be in the range of $25.0 billion to $25.6 billion.
- Capital expenditures are projected to be approximately $600 million.
- The quarterly dividend is maintained at $1.60 per share.
- Share repurchases will be executed opportunistically.
- AMG 510 (sotorasib) is expected to have initial data from a potentially pivotal Phase 2 monotherapy study in patients with advanced non-small cell lung cancer (NSCLC) in H2 2020.
Challenges Ahead
- Share repurchases will be at the lower end of the previous guidance of $3 billion to $5 billion.
- Sales of negatively affected products fell most early in the second quarter with sales beginning to recover in the latter weeks of the quarter.
- Prolia sales decreased 6% year-over-year driven by lower unit demand as a result of fewer office visits by osteoporosis patients.
- We anticipate a slowdown in reported sales in the third quarter as the first half of 2020 benefited from larger shipments to Astellas, our partner in Japan, to ensure they had appropriate inventory.
- Neulasta sales decreased 28% year-over-year driven by the impact of biosimilar competition on net selling price and unit demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income