How did Amgen's tax strategy affect its financials in 2024?

Amgen's tax strategy had a significant impact on its financials in 2024, primarily due to the ongoing tax disputes with the IRS and the associated litigation.

1. **Tax Dispute and Litigation**:
- Amgen faced a class-action lawsuit over a $10.7 billion tax dispute with the IRS, alleging reckless concealment of the tax bill.
- The company had previously disclosed receiving Notices of Deficiency from the IRS seeking substantial back taxes and penalties.
2. **Financial Impact**:
- Despite strong revenue growth, as reported in its 2024 Q4 financial results, Amgen's GAAP EPS decreased by 53% in the fourth quarter due to acquisition-related expenses and incremental operating expenses from the Horizon acquisition.
- The company's net income for 2024 was $4.09 billion, but the tax-related issues and legal fees could have affected the financial performance and investor confidence.

|code|Ticker|Name|Date|Net Income YoY|Taxes Payable|market_code|
|---|---|---|---|---|---|---|
|AMGN|AMGN.O|Amgen|2024 Q1|-103.97747272087292||185|
|AMGN|AMGN.O|Amgen|2024 Q2|-45.902828136330676||185|
|AMGN|AMGN.O|Amgen|2024 Q3|63.58381502890174||185|
|AMGN|AMGN.O|Amgen|2024 Q4|-18.252933507170795||185|

3. **Investor Perception and Stock Price**:
- Investor losses were attributed to delays in disclosing significant tax risks, leading to a decline in stock price.
- The price of Amgen common stock fell by more than 6% on news of the class action complaint.
4. **Operational and Strategic Impact**:
- Amgen's tax strategy and the resulting disputes highlight the importance of accurate accounting and adequate accruals for tax liabilities.
- The company's defense against the IRS claims includes challenging the merits of the Notices of Deficiency, with the trial scheduled to begin in November 2024.

In conclusion, Amgen's tax strategy and the associated disputes had a complex impact on its financials in 2024, including legal costs, potential reputational damage, and fluctuations in investor confidence and stock prices.