AMGEN ANNOUNCES $1 BILLION MANUFACTURING EXPANSION IN NORTH CAROLINA

Rhea-AI Summary

Amgen (NASDAQ: AMGN) has announced a $1 billion expansion to establish a second drug substance manufacturing facility in Holly Springs, North Carolina. This investment builds upon a previous $550 million commitment, bringing the total planned investment to over $1.5 billion.

The expansion will create 370 new jobs in the region and incorporate cutting-edge technologies and sustainable practices. The new facility, alongside the existing one, will strengthen Amgen's global biomanufacturing network and support the company's ability to meet growing demand for its innovative therapies.

Positive

• Total investment of $1.5 billion demonstrates strong financial commitment to manufacturing expansion
• Creation of 370 new jobs indicates significant operational growth
• Expansion of manufacturing capacity to meet growing product demand
• Strategic investment in cutting-edge technologies and sustainable practices

Negative

• None.

Insights

Financial Analyst

The $1 billion expansion marks a significant strategic investment that strengthens AMGN's manufacturing capabilities and competitive position. Combined with the previous $550 million commitment, this $1.5 billion total investment demonstrates strong confidence in future demand growth. The creation of 370 new jobs and establishment of a second facility suggests robust scaling of production capacity.

This investment is particularly strategic given the current economic environment, as it helps AMGN maintain control over its supply chain while potentially reducing long-term production costs through technological advancement and operational efficiency. The focus on sustainable practices and cutting-edge technologies should contribute to long-term cost optimization and regulatory compliance.

Manufacturing Operations Expert

The dual-facility setup in Holly Springs represents a sophisticated approach to manufacturing redundancy and risk management. Having two facilities in close proximity creates operational synergies while providing backup capacity - important for maintaining reliable drug supply chains. The incorporation of cutting-edge technologies suggests automated processes and advanced quality control systems, which typically lead to higher production efficiency and reduced error rates.

North Carolina's established life sciences ecosystem offers significant advantages, including access to specialized talent and supporting infrastructure. This expansion will likely enable more efficient production scaling and faster response to market demand fluctuations.

 Investment Establishes Second Facility in Holly Springs; Builds on Previous $550M Commitment

THOUSAND OAKS, Calif., Dec. 5, 2024 /PRNewswire/ -- Amgen (NASDAQ: AMGN) today announced a $1 billion expansion to establish a second drug substance manufacturing facility in North Carolina. This brings the company's total planned investment in Holly Springs to more than $1.5 billion, building on its previously announced $550 million commitment.

"This expansion underscores our unwavering focus on bringing transformative medicines to patients around the world," said Robert A. Bradway, chairman and chief executive officer at Amgen. "North Carolina will be an important part of our global manufacturing network as we continue to meet the growing demand for our innovative therapies while generating significant local economic impact."

"North Carolina's reputation as one of the world's leading centers for biotechnology soars even higher with today's decision by Amgen," said North Carolina Governor Roy Cooper. "North Carolina offers everything an innovative biotech company needs to succeed, especially our highly trained, dedicated and diverse workforce which is fine-tuned to the needs of this critical industry." 

The $1 billion facility will incorporate cutting-edge technologies and sustainable practices, aligning with Amgen's commitment to environmental stewardship and manufacturing excellence. In tandem with the existing facility, these investments will create 370 new jobs in the region, supporting a robust biomanufacturing hub.

Amgen's choice of North Carolina reflects its position as a premier life sciences destination, with a vibrant ecosystem of innovation and a skilled workforce. This expansion enhances the company's global biomanufacturing network, leveraging decades of operational expertise and technological advancements to ensure the reliable and efficient delivery of high-quality medicines to patients worldwide.

About Amgen 
Amgen discovers, develops, manufactures and delivers innovative medicines to help millions of patients in their fight against some of the world's toughest diseases. More than 40 years ago, Amgen helped to establish the biotechnology industry and remains on the cutting-edge of innovation, using technology and human genetic data to push beyond what's known today. Amgen is advancing a broad and deep pipeline that builds on its existing portfolio of medicines to treat cancer, heart disease, osteoporosis, inflammatory diseases and rare diseases.

In 2024, Amgen was named one of the "World's Most Innovative Companies" by Fast Company and one of "America's Best Large Employers" by Forbes, among other external recognitions. Amgen is one of the 30 companies that comprise the Dow Jones Industrial Average^®, and it is also part of the Nasdaq-100 Index^®, which includes the largest and most innovative non-financial companies listed on the Nasdaq Stock Market based on market capitalization.

For more information, visit Amgen.com and follow Amgen on X, LinkedIn, Instagram, TikTok, YouTube and Threads. 

Amgen Forward-Looking Statements
This news release contains forward-looking statements that are based on the current expectations and beliefs of Amgen. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including any statements on the outcome, benefits and synergies of collaborations, or potential collaborations, with any other company (including BeiGene, Ltd. or Kyowa Kirin Co., Ltd.), the performance of Otezla® (apremilast) (including anticipated Otezla sales growth and the timing of non-GAAP EPS accretion), our acquisitions of Teneobio, Inc., ChemoCentryx, Inc., or Horizon Therapeutics plc (including the prospective performance and outlook of Horizon's business, performance and opportunities, any potential strategic benefits, synergies or opportunities expected as a result of such acquisition, and any projected impacts from the Horizon acquisition on our acquisition-related expenses going forward), as well as estimates of revenues, operating margins, capital expenditures, cash, other financial metrics, expected legal, arbitration, political, regulatory or clinical results or practices, customer and prescriber patterns or practices, reimbursement activities and outcomes, effects of pandemics or other widespread health problems on our business, outcomes, progress, and other such estimates and results. Forward-looking statements involve significant risks and uncertainties, including those discussed below and more fully described in the Securities and Exchange Commission reports filed by Amgen, including our most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and current reports on Form 8-K. Unless otherwise noted, Amgen is providing this information as of the date of this news release and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

No forward-looking statement can be guaranteed and actual results may differ materially from those we project. Our results may be affected by our ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments involving current and future products, sales growth of recently launched products, competition from other products including biosimilars, difficulties or delays in manufacturing our products and global economic conditions. In addition, sales of our products are affected by pricing pressure, political and public scrutiny and reimbursement policies imposed by third-party payers, including governments, private insurance plans and managed care providers and may be affected by regulatory, clinical and guideline developments and domestic and international trends toward managed care and healthcare cost containment. Furthermore, our research, testing, pricing, marketing and other operations are subject to extensive regulation by domestic and foreign government regulatory authorities. We or others could identify safety, side effects or manufacturing problems with our products, including our devices, after they are on the market. Our business may be impacted by government investigations, litigation and product liability claims. In addition, our business may be impacted by the adoption of new tax legislation or exposure to additional tax liabilities. If we fail to meet the compliance obligations in the corporate integrity agreement between us and the U.S. government, we could become subject to significant sanctions. Further, while we routinely obtain patents for our products and technology, the protection offered by our patents and patent applications may be challenged, invalidated or circumvented by our competitors, or we may fail to prevail in present and future intellectual property litigation. We perform a substantial amount of our commercial manufacturing activities at a few key facilities, including in Puerto Rico, and also depend on third parties for a portion of our manufacturing activities, and limits on supply may constrain sales of certain of our current products and product candidate development. An outbreak of disease or similar public health threat, such as COVID-19, and the public and governmental effort to mitigate against the spread of such disease, could have a significant adverse effect on the supply of materials for our manufacturing activities, the distribution of our products, the commercialization of our product candidates, and our clinical trial operations, and any such events may have a material adverse effect on our product development, product sales, business and results of operations. We rely on collaborations with third parties for the development of some of our product candidates and for the commercialization and sales of some of our commercial products. In addition, we compete with other companies with respect to many of our marketed products as well as for the discovery and development of new products. Discovery or identification of new product candidates or development of new indications for existing products cannot be guaranteed and movement from concept to product is uncertain; consequently, there can be no guarantee that any particular product candidate or development of a new indication for an existing product will be successful and become a commercial product. Further, some raw materials, medical devices and component parts for our products are supplied by sole third-party suppliers. Certain of our distributors, customers and payers have substantial purchasing leverage in their dealings with us. The discovery of significant problems with a product similar to one of our products that implicate an entire class of products could have a material adverse effect on sales of the affected products and on our business and results of operations. Our efforts to collaborate with or acquire other companies, products or technology, and to integrate the operations of companies or to support the products or technology we have acquired, may not be successful. There can be no guarantee that we will be able to realize any of the strategic benefits, synergies or opportunities arising from the Horizon acquisition, and such benefits, synergies or opportunities may take longer to realize than expected. We may not be able to successfully integrate Horizon, and such integration may take longer, be more difficult or cost more than expected. A breakdown, cyberattack or information security breach of our information technology systems could compromise the confidentiality, integrity and availability of our systems and our data. Our stock price is volatile and may be affected by a number of events. Our business and operations may be negatively affected by the failure, or perceived failure, of achieving our environmental, social and governance objectives. The effects of global climate change and related natural disasters could negatively affect our business and operations. Global economic conditions may magnify certain risks that affect our business. Our business performance could affect or limit the ability of our Board of Directors to declare a dividend or our ability to pay a dividend or repurchase our common stock. We may not be able to access the capital and credit markets on terms that are favorable to us, or at all.

CONTACT: Amgen, Thousand Oaks
Elissa Snook, 609-251-1407 (media)
Justin Claeys, 805-313-9775 (investors) 

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SOURCE Amgen

FAQ

How much is Amgen (AMGN) investing in its new North Carolina manufacturing facility?

Amgen is investing $1 billion in a second manufacturing facility in Holly Springs, North Carolina, bringing its total investment in the area to over $1.5 billion.

How many jobs will Amgen's (AMGN) North Carolina expansion create?

Amgen's manufacturing expansion in Holly Springs, North Carolina will create 370 new jobs in the region.

Where is Amgen (AMGN) building its new manufacturing facility?

Amgen is building its second manufacturing facility in Holly Springs, North Carolina.