Amgen Inc said Wednesday that the United States Internal Revenue Service (IRS) is pursuing additional back taxes totaling $5.1 billion, plus interest and penalties, related to the drugmaker’s 2013 to 2015 profit accounting between the United States and Puerto Rico, where the majority of its manufacturing operations are located.
Amgen is already contesting an earlier IRS decision to increase the company’s taxable income for 2010-2012 by an amount equal to approximately $3.6 billion in additional federal tax, plus interest.
The biotech company based in California stated that it is contesting the tax notices and anticipates the legal process will take years to complete.
Additionally, Amgen reported a 6% increase in first-quarter revenue to $6.2 billion, as product sales increased 2% and the company benefited from an agreement to manufacture COVID treatments sold by Eli Lilly and Co.
Amgen reported that adjusted earnings per share increased 15% year over year to $4.25 per share, owing to higher revenue and share repurchases. According to Refinitiv, analysts expected the company to earn $4.09 per share on average.
Profitability decreased 5% to $2.68 per share.
Amgen said it continues to expect adjusted earnings of $17.00 to $18.00 per share on revenue of $25.4 billion to $26.5 billion for the full year.