Amgen says IRS seeks another $5.1 billion in back taxes

By Deena Beasley

Reuters – 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 drugmakers 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 companys taxable income for 20102012 by an amount that would result in additional federal tax of around 3.6 billion, plus interest.

The Californiabased 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.