Gross Profit Margin Trend for Amgen

A Historical Perspective on Amgen's Financial Health

Amgen Inc., a leading biotechnology company, has shown remarkable consistency in its gross profit margins over the years. From the mid-1980s to the early 1990s, Amgen maintained an impressive gross profit ratio, often hovering around 100%. This period marked the company's early growth phase, where it capitalized on its innovative biopharmaceutical products.

Key Insights

• 1985-1988: Amgen's gross profit ratio was consistently at 100%, reflecting its strong market position and efficient cost management.
• 1989-1990: A slight dip was observed, with the ratio dropping to approximately 99% in mid-1989 and further to around 89% by the end of 1989. This could be attributed to increased competition and rising production costs.
• 1991-1992: The company stabilized its margins, maintaining an average gross profit ratio of around 86%. This period indicates Amgen's resilience and ability to adapt to market changes.

Amgen's financial journey is a testament to its strategic prowess and operational efficiency. The company's ability to sustain high gross profit margins over decades underscores its leadership in the biotechnology sector.