Amgen says IRS seeks another $5.1 billion in back taxes

The California-based biotech said it is contesting the tax notices and expects the legal process to take years to conclude. Also on Wednesday, Amgen said its first quarter revenue rose 6% to $6.2 billion as product sales increased 2%, and it posted higher revenue from an agreement to manufacture COVID treatments sold by Eli Lilly and Co. Amgen said adjusted earnings for the quarter were up 15% from a year earlier to $4.25 per share, driven by higher revenue and share repurchases.

Amgen Inc on Wednesday said the U.S. Internal Revenue Service (IRS) is seeking additional back taxes of $5.1 billion, plus interest and penalties, related to the drugmaker's 2013 to 2015 accounting for profits between the United States and Puerto Rico, the location of most of its manufacturing operations.

Amgen is already in the process of disputing a previous IRS decision to increase the company's taxable income for 2010-2012 by an amount that would result in additional federal tax of around $3.6 billion, plus interest. The California-based biotech said it is contesting the tax notices and expects the legal process to take years to conclude.

Also on Wednesday, Amgen said its first quarter revenue rose 6% to $6.2 billion as product sales increased 2%, and it posted higher revenue from an agreement to manufacture COVID treatments sold by Eli Lilly and Co. Amgen said adjusted earnings for the quarter were up 15% from a year earlier to $4.25 per share, driven by higher revenue and share repurchases. Analysts, on average, had expected $4.09 per share, according to Refinitiv.

Net profit fell 5% to $2.68 per share. For the full year, Amgen said it still expects adjusted earnings of $17.00 to $18.00 per share on revenue of $25.4 billion to $26.5 billion. (Reporting By Deena Beasley Editing by Bill Berkrot)

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