Amgen (AMGN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues rose 20% year-over-year to $8.4 billion, driven by 26% volume growth, strong contributions from the Horizon acquisition, and double-digit sales growth in 12 products.

• Key products such as Prolia, EVENITY, Repatha, TEZSPIRE, BLINCYTO, and TAVNEOS delivered robust gains, with rare disease product sales reaching $1.1 billion.

• Net income and GAAP EPS fell 46% year-over-year due to higher operating expenses and amortization from the Horizon acquisition, while non-GAAP EPS decreased 1% to $4.97.

• Significant pipeline progress included FDA approvals for IMDELLTRA and BLINCYTO, and positive Phase 3 data for UPLIZNA.

• Internal innovation investment reached $1.4 billion in Q2, up 30% year-over-year, and the dividend increased 6% to $2.25 per share.

Financial highlights

• Total Q2 2024 revenue was $8.4 billion, up 20% year-over-year, with product sales at $8.04 billion.

• Non-GAAP operating margin was 48.2% of product sales; non-GAAP R&D spending rose 30% to $1.4 billion.

• Free cash flow was $2.2 billion, down from $3.8 billion last year due to timing of tax payments.

• Cash and investments at quarter-end were $9.3 billion, with $62.6 billion in debt outstanding.

• Dividend per share increased 6% year-over-year to $2.25.

Outlook and guidance

• 2024 total revenue guidance: $32.8 billion–$33.8 billion; non-GAAP EPS: $19.10–$20.10.

• GAAP EPS guidance: $6.57–$7.62; GAAP tax rate: 6.0%–7.5%; non-GAAP tax rate: 15.0%–16.0%.

• Capital expenditures expected at ~$1.3 billion for 2024, up from prior guidance.

• Share repurchases capped at $500 million in 2024.

• On track to retire over $10 billion in debt by end of 2025.