Deena Beesley

(Reuters) – Amgen Inc (NASDAQ) On Wednesday, U.S. Internal Revenue Service(IRS) announced that they are seeking additional taxes in the amount of $5.1billion, along with interest and penalties. These back taxes relate to 2013 to 2015 US accounting of profits for drugmaker between Puerto Rico (the location of most its manufacturing operations) and the United States.

Amgen is currently disputing an IRS decision to raise the company’s 2010-2012 taxable income by approximately $3.6Billion.

California-based Biotech stated that it contests tax notices. The company expects the legal process will take many years.

Amgen also reported Wednesday that its first quarter revenues rose 6%, to $6.2B, due to product sales increasing 2% and a higher revenue share from an agreement with Eli Lilly and Co. to produce COVID treatment.

Amgen reported that adjusted earnings rose 15% to $4.25 per shares, attributed to higher revenues and share repurchases. Refinitiv reports that analysts expected to earn $4.09 per sen on average.

Net profit decreased 5% to $2.68 per Share

Amgen still anticipates adjusted earnings between $17.00 and $18.00 per share for the entire year based on revenues of $25.4 billion to $256.5 billion.