- Amgen Inc (NASDAQ:AMGN) has recently received a notice of deficiency from the Internal Revenue Service centered on 2013 to 2015.
- The agency seeks to increase Amgen's taxable income for the period by an amount that would result in an additional federal tax of approximately $5.1 billion, plus interest.
- In addition, the notice proposes penalties of roughly $2 billion.
- The notice is similar to the adjustments Amgen received from the IRS for the 2010 to 2012 period.
- Amgen believes that the adjustments proposed by the IRS for the 2010-2015 period and the penalties proposed for the 2013-2015 period are without merit.
- Earnings: Q1 revenues increased 6% Y/Y to $6.24 billion, slightly beating the consensus of $6.11 billion.
- The increase resulted from a 2% growth in global product sales and increased other revenue from the COVID-19 manufacturing collaboration.
- Unit volumes grew 9%, offset by a 7% lower net selling price.
- Adjusted EPS increased 15% to $4.25, ahead of the consensus of $4.15.
- Enbrel sales declined 7% to $862 million. Otezla sales compressed 5% to $451 million.
- Sales of newer cancer drug Lumakras totaled $62 million for Q1.
- Among Amgen's bigger products, sales of osteoporosis treatment Prolia rose 12% to $852 million, and revenue from cholesterol treatment Repatha inched 15% ahead to $329 million.
- Aimovig, its migraine prevention drug, brought in $101 million, up 53% Y/Y. Sales of bone marrow-stimulating drug Neulasta tumbled by 28%. Sales from cancer drugs Mvasi and Kanjinti decreased 17% and 40%, respectively, due to increased competition and price erosion.
- Guidance: Amgen expects FY22 sales of $25.4 billion - $26.5 billion, with adjusted EPS of $17.00 - $18.00, compared to the consensus of $26.14 billion and $17.63, respectively.
- Price Action: AMGN shares closed 5.95% lower at $233.98 during after-hours trading on Wednesday.
