Amgen Inc.
Biotechnology / BiopharmaceuticalsFounded 1980- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
Amgen Inc.
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$33.4B
Market Cap
$153.0B
Net Income
$3.8B
Employees
24,000
The company generated $33.4 billion in revenue in FY2024, making it one of the largest independent biotechnology firms in the world. The $27.8 billion acquisition of Horizon Therapeutics in 2023 was the largest deal in Amgen's history. Revenue grew from $26.0 billion in 2021 to $33.4 billion in 2024, accelerated by the Horizon integration. Net income of $3.8 billion against a market cap of approximately $153 billion reflects an industry that the market prices on pipeline probability rather than current earnings. Amgen paid $27.8 billion for Horizon Therapeutics in 2023 — and the FTC sued to block it on the grounds that Amgen's rebating practices could exclude competing drugs from insurance formularies. Revenue moved from $25.9 billion in 2021 to $33.4 billion in 2024, partly organic and partly Horizon-driven. Net income of $3.8 billion reflects both the interest expense on acquisition debt and the R&D investment required to sustain a pipeline of over 40 clinical-stage molecules. The company spent approximately $3.24 billion on R&D in FY2024. Enbrel, the rheumatoid arthritis treatment that peaked at over $5 billion in US annual sales, faces biosimilar competition that has been slower to materialize in the US than in Europe, but the erosion is arriving. Market capitalization of approximately $153 billion against $33.4 billion in revenue is a multiple that reflects the pharmaceutical earnings model: current products have known trajectories, pipeline assets have probabilistic values, and which Phase III clinical trial results in the next three years will move both numbers meaningfully. George Rathmann, a veteran of Abbott Laboratories, and venture capitalist William Bowes assembled a scientific advisory board and secured $19 million in initial funding to create a company they named Applied Molecular Genetics — Amgen. It became the first biologic drug to exceed $1 billion in annual sales.
Revenue Trend Analysis
YoY Change
+18.6%
4-Year CAGR
+7.1%
Peak Year
2024
Trend
Consistent Growth
Amgen Inc. has reported revenue across 5 fiscal years, compounding at +7.1% annually over 4 years. The most recent year saw a 18.6% increase versus the prior year. Revenue peaked in 2024 at $33.4B. Out of 4 reported periods, 4 showed growth and 0 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2024 | $33.4B | $3.8B | +18.6% |
| FY2023 | $28.2B | — | +7.1% |
| FY2022 | $26.3B | — | +1.3% |
| FY2021 | $26.0B | — | +2.2% |
| FY2020 | $25.4B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Amgen has repurchased approximately $75 billion in stock since 2011, averaging $6-8 billion annually, exceeding its $6 billion annual R&D budget and prioritizing shareholder returns over internal innovation. The buyback program reduced Amgen's share count from 1.2 billion shares in 2011 to 530 million by 2024, boosting EPS growth from 8% to 12% annually despite flat revenue growth. Critics argue this financial engineering comes at the expense of pipeline development, pointing to Amgen's declining internal drug approvals (1-2 per year vs 3-4 for competitors), though management counters that returning capital to shareholders is appropriate given limited high-return R&D opportunities in mature therapeutic areas.
Amgen generated $12.1 billion in operating cash flow in 2023 (36% margin), with approximately $3.0 billion allocated to dividends (yielding 3.1% at current stock price), $6.5 billion to share buybacks, and $6.0 billion to R&D, requiring the company to use cash reserves and debt to fund the $13 billion Horizon acquisition. Amgen has raised its dividend for 13 consecutive years, with current payout of $8.80 annually per share up from $2.44 in 2011, though the 27% payout ratio (against operating cash flow) leaves ample room for continued 10%+ annual increases. The high cash generation reflects biotech's asset-light model where drugs require minimal manufacturing capex ($1-2 billion annually) once facilities are built, unlike capital-intensive industries.
The $13 billion all-cash Horizon acquisition in October 2023 increased Amgen's debt from $33 billion to $45 billion (3.2x net leverage) and added $4.6 billion in annual revenue but generated immediate accounting losses due to $8.5 billion in acquired intangible assets requiring amortization. Amgen financed the deal with $10 billion in new bonds at 5.5% interest plus $3 billion in cash, increasing annual interest expense from $1.7 billion to $2.4 billion. The acquisition payback depends on Tepezza (generating $2.2 billion annually) maintaining growth despite new competitors, and Amgen has committed to deleveraging to below 3.0x net debt by 2026 through $15+ billion in expected free cash flow.
Amgen's operating margin declined from 50% in 2012 to 37% in 2023, pressured by biosimilar competition eroding high-margin products (Enbrel, Neulasta) and growth shifting toward lower-margin businesses like biosimilars and acquired franchises. The company's gross margin remains strong at 75-80%, but SG&A expenses increased from 20% to 24% of revenue due to expanded sales forces for cardiovascular drugs (Repatha, Aimovig) and higher R&D costs ($6 billion, 18% of revenue). Management targets stabilizing operating margins at 40-42% through productivity initiatives and scale leverage from the Horizon acquisition, though continued biosimilar erosion creates a 1-2 percentage point annual headwind requiring offsetting cost reductions.
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CorpDigest. "Amgen Inc. Revenue & Financials." CorpDigest, https://corpdigest.com/company/amgen/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Amgen Inc. reported $33B in revenue (FY2024).</strong><br>Source: <a href="https://corpdigest.com/company/amgen/financials" target="_blank" rel="noopener">CorpDigest — Amgen Inc. financials</a></div>