Amgen Incorporated is a US multinational biopharmaceutical company based in Thousand Oaks, California. It is the world’s largest independent biotechnology firm. The company employs nearly 18,000 workers worldwide.
A biotechnology company uses microorganisms (e.g. bacteria) or biological substances (e.g. enzymes) to develop drugs, while a pharmaceutical company relies on chemical-based synthetic processes to develop small-molecule drugs.
Amgen makes, sells and distributes more than 12 different medications in the United States, seven of which are among the top 100 best-selling drugs.
History
The company was founded in 1980 and was called Applied Molecular Genetics. Much like many major tech giants today, it started off as a small operation. The Chief Executive’s Office was in a trailer, while each scientist was given just two feet of lab bench space.
The start-up was initially funded with several million dollars in venture capital from CEO George Rathamann, a former Vice President at Abbott Laboratories.
In its early days, the firm focused on recombinant DNA technology, a new scientific breakthrough which at the time had only produced one exciting medication, recombinant human insulin (in 1977). The company recorded a loss every year during its first five years of life.
In 1986 Amgen posted its first profit, but even then, its major source of income was research grants from major drugmakers.
The company’s current name is a portmanteau (linguistic blend) of Applied Molecular Genetics. It has been called Amgen since 1983, which was when the company was floated.
Amgen’s breakthrough, as far as growth is concerned, occurred in 1983. Its researchers had managed to isolate the human erythropoietin gene and produce recombinant protein in hamsters. The hormone Erythropoeitin stimulates the creation of red blood cells. In 1989, Epogen was approved by the Food and Drug Administration (FDA) for kidney dialysis patients with anemia. The approval helped annual sales jump from $2.8 million in 1989 to nearly $140 million in 1990.
Fortune magazine named Epogen ‘product of the year’ in 1989. In 1990, Mr. Rathmann stepped down and George Binder became CEO and Chairman.
In 1991, Neupogen came onto the market. Revenue exceeded $1 billion in 1992 and $4 billion by the end of 1996. Throughout the 1990s, Amgen continued growing and investing strongly in research and development (R&D). In 1997, Infergen was launched.
Throughout the 1990s and early 2000s Amgen also grew by buying other biotech companies. In 1994 it acquired Synergen, and then Immunex in 2002, Tularik in 2004 and Abgenix in 2006.
By 2006, Amgen had become a multinational giant, the largest biotech company in the world, and the biggest employer in Thousand Oaks, California. Sites were built in Asia and Europe.
By 2008, it had become one of the 15 largest pharma and/or biotech companies in the world.
In 2013, Amgen bought Onyx Pharmaceuticals for $10.4 billion ($120 per share).
At the end of December 2013, Amgen had eleven medications in Phase III clinical trials.
Overview
- Chairman, President, and CEO: Robert A. Bradway
- CFO: David W. Meline
- Industry: Biopharmaceutical
- Type: Public company
- Listed on NASDAQ
- NASDAQ stock symbol: AMGN
- NASDAQ-100 Component
- S&P 500 Component
- Formed: 1980
- Revenue: $20.063 billion USD (2014)
- Net income: $5,158 million USD (2014)
- Earnings per share: $6.80 USD (2014)
- Company head office: One Amgen Center Drive, Thousand Oaks, CA, USA 91320-1799
- Employees: 17,900 (2014)
- Website: http://www.amgen.com/
- Investor relations number: 805-447-1060
- Investor relations email: [email protected]
Amgen Incorporated Financial Results, Years Ended December 31
| Revenues (in $ millions) | 2014 | 2013 |
| Product sales | $19,327 | $18,192 |
| Total revenues | $20,063 | $18,676 |
| Operating Expenses (in $ millions) | ||
| Cost of sales | $4,422 | $3,346 |
| Research and development | $4,297 | $4,083 |
| Selling, general and administrative | $4,699 | $5,184 |
| Total operating expenses | $13,872 | $12,809 |
| Income Data (in $ millions) | ||
| Operating income | $6,191 | $5,867 |
| Income before income taxes | $5,585 | $5,265 |
| Net income | $5,158 | $5,081 |
| Balance sheet data (in $ millions) | ||
| Total assets | $69,009 | $66,125 |
| Long-term debt | $30,215 | $29,623 |
| Total stockholders’ equity | $25,778 | $22,096 |
| Common share data (in $) | ||
| Basic earnings per share | $6.80 | $6.75 |
| Diluted earnings per share | $6.70 | $6.64 |
| Cash flow data (in $ millions) | ||
| Net cash provided by operating activities | $8,555 | $6,291 |
| Net cash (used for) provided by investing activities | $(5,752) | $(8,469) |
| Net cash (used for) provided by financing activities | $(2,877) | $(2,726) |
| Cash and cash equivalents at beginning of year | $3,805 | $3,257 |
| Cash and cash equivalents at end of year | $3,731 | $3,805 |
Source: “Amgen Incorporated Form 10-K 2014”