Amgen Reports 19% Revenue Growth to $33.4 Billion for Fiscal Year 2024

Amgen Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $33.4 billion, a 19% increase from $28.2 billion in 2023. This growth was primarily driven by a 19% rise in product sales, which totaled $32.0 billion, bolstered by a 23% increase in volume, although partially offset by a 2% decline in net selling prices. Notably, product sales from Horizon products, acquired in October 2023, contributed $4.2 billion to the total, compared to $954 million in the previous year. However, net income fell by 39% to $4.1 billion, largely due to increased operating expenses, which rose 29% to $26.2 billion, driven by higher amortization expenses related to the Horizon acquisition.

Strategically, Amgen has made significant advancements in its product pipeline, receiving regulatory approvals for key products such as BLINCYTO for B-cell precursor acute lymphoblastic leukemia and IMDELLTRA for small cell lung cancer. The company also reported positive Phase 3 trial results for several products, including UPLIZNA and TEZSPIRE, indicating a robust pipeline of potential therapies. Amgen's global presence continues to expand, with operations in approximately 100 countries, and it has been actively enhancing its manufacturing capabilities, including the opening of new facilities in North Carolina and Ohio.

Operationally, Amgen's workforce comprised approximately 28,000 employees as of December 31, 2024, with a relatively low turnover rate compared to industry peers. The company has focused on maintaining a diverse and inclusive workplace, which it believes fosters innovation and productivity. In terms of product adoption, Amgen's leading products, such as Prolia, Repatha, and TEZSPIRE, have shown strong sales growth, with Repatha sales increasing by 36% year-over-year, reflecting a growing market share in the cardiovascular segment.

Looking ahead, Amgen anticipates continued volume growth for its products, although it expects net selling price declines to persist, particularly due to the impact of the Inflation Reduction Act and other pricing pressures. The company is also preparing for potential challenges related to the expiration of patents for key products, including Prolia and XGEVA, which are set to expire in February 2025. Amgen remains committed to investing in research and development, with R&D expenses increasing to $6.0 billion in 2024, as it seeks to innovate and expand its therapeutic offerings in a competitive landscape.