The acquisition of Horizon Therapeutics in October 2023 has significantly contributed to revenue growth, with $1.1 billion in product sales in the three months ended June 30, 2024.

IMDELLTRA received accelerated approval from the FDA for the treatment of adult patients with extensive-stage small cell lung cancer (ES-SCLC) with disease progression on or after platinum-based chemotherapy.

BLINCYTO received approval from the FDA in frontline consolidation for patients with CD19-positive Philadelphia chromosome-negative B-cell precursor acute lymphoblastic leukemia (B-ALL).

Operating expenses increased by 51% to $6.479 billion, compared to $4.302 billion in the same quarter of the previous year, primarily driven by higher amortization expense from the Horizon acquisition and other commercial expenses.

Research and development expenses increased by 30% to $1.447 billion, compared to $1.113 billion in the same quarter of the previous year, driven by higher spend in later-stage clinical programs and research and early pipeline, including Horizon-acquired programs.

Selling, general and administrative expenses increased by 38% to $1.785 billion, compared to $1.294 billion in the same quarter of the previous year, primarily driven by expenses from the acquired Horizon business and other commercial expenses.

Uncertain macroeconomic conditions, including the risk of inflation, higher interest rates and instability in the financial system, as well as rising healthcare costs continue to pose challenges to our business.

The industry continues to be subject to cost containment measures and significant pricing pressures, resulting in net price declines. Moreover, legislation enacted to reduce healthcare expenditures, including provisions of the IRA, have affected, and are likely to continue to affect, our business.

Internal or external events that compromise the confidentiality, integrity and availability of our systems and data may significantly interrupt the operation of our business, result in significant costs and/or adversely affect our reputation.

The decrease in ENBREL sales for the three and six months ended June 30, 2024 was primarily driven by lower net selling price. Going forward, we expect relatively flat volumes with continued declines in net selling price, including the impact from the IRA Medicare Part D price set by CMS beginning in 2026.

The increase in global XGEVA sales for the three and six months ended June 30, 2024 was driven by higher net selling price.

The increase in global Repatha sales for the three and six months ended June 30, 2024 was driven by volume growth of 46% and 45%, respectively, partially offset by lower net selling price of 20% and 16%, respectively.

Cost of sales increased to 40.6% of total revenues for the six months ended June 30, 2024, driven by higher amortization expense from Horizon acquisition-related assets and, to a lesser extent, higher royalty and profit share expense.

Amortization of intangible assets is primarily included in Cost of sales in the Condensed Consolidated Statements of Income. As of June 30, 2024, the total estimated amortization of our finite-lived intangible assets for the remaining six months ending December 31, 2024, and the years ending December 31, 2025, 2026, 2027, 2028 and 2029, are $2.4 billion, $4.5 billion, $3.9 billion, $3.9 billion, $2.9 billion and $2.2 billion, respectively.

The inventory fair value adjustment is being amortized using a weighted-average inventory turnover, which we estimate to approximate 27 months from the acquisition date.

Research and development expenses increased by 30% to $1.447 billion, compared to $1.113 billion in the same quarter of the previous year, driven by higher spend in later-stage clinical programs and research and early pipeline, including Horizon-acquired programs.

IPR&D consists of R&D projects acquired in a business combination that are not complete at the time of acquisition due to remaining technological risks and/or lack of receipt of required regulatory approvals. We review IPR&D projects for impairment annually, whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable and upon the establishment of technological feasibility or regulatory approval.

Amgen focuses on areas of high unmet medical need and leverages its expertise to strive for solutions that dramatically improve people's lives, while also reducing the social and economic burden of disease.

During the six months ended June 30, 2024 and 2023, we did not repurchase shares under our stock repurchase program. As of June 30, 2024, $7.0 billion of authorization remained available under our stock repurchase program.

During the six months ended June 30, 2024 and 2023, debt repayments totaled $1.4 billion and $704 million, respectively.

In March 2024 and December 2023, our Board of Directors declared quarterly cash dividends of $2.25 per share, which were paid in June 2024 and March 2024, respectively. In August 2024, our Board of Directors declared a quarterly cash dividend of $2.25 per share that will be paid in September 2024.

The provided 10-Q filing does not contain any specific information on ESG initiatives.

Uncertain macroeconomic conditions, including the risk of inflation, higher interest rates and instability in the financial system, as well as rising healthcare costs continue to pose challenges to our business.

Ongoing geopolitical conflicts continue to create additional uncertainty in global macroeconomic conditions.

With public and private healthcare-provider focus, the industry continues to be subject to cost containment measures and significant pricing pressures, resulting in net price declines.