How much of Amgen’s revenue comes from haram?
Amgen develops human therapeutics targeting six areas: cardiovascular disease, oncology, bone health, neuroscience, nephrology, and inflammation.
Amgen earns its revenue from the following revenue sources:
- Product Sales:
Includes revenue generated from selling therapeutics to treat cancer, osteoporosis, migraine, psoriasis, asthma, and cardiovascular diseases.
- Other Revenue:
Includes revenue generated from royalty income and corporate partner revenues.
The contributions from each of Amgen’s revenue segments in their Q2 2021 report were as follows:
Practical Islamic Finance concludes:
None of Amgen’s revenue comes from anything inherently haram.
Does Amgen rely on interest to operate?
|
Most Recent Quarter ended 3/31/2022 |
Fiscal year ended 12/31/2021 |
Fiscal year ended 12/31/2020 |
|
|---|---|---|---|
| Interest Expense | $295,000 | $1,197,000 | $1,038,000 |
| Total Operating Expenses | $3,738,000 | $16,641,000 | $16,096,000 |
| Interest Expense / Total Operating Expenses |
7.89% | 7.19% | 6.45% |
Practical Islamic Finance concludes:
There appears to be a persistent reliance on the use of Riba in Amgen Inc. operations.
What is Amgen Environmental, Social, and Governance (ESG) Impact?
Environment
Since 2008, Amgen’s ESG program has implemented projects resulting in a 33% reduction in carbon emissions, a 30% reduction in water usage, and a 28% reduction in waste disposal.
In addition, as of 2020, 41% of Amgen’s electricity consumption comes from renewable sources.
Social
In 2020, Amgen Safety Net Foundation provided $1.5 billion worth of medicines for free to low-income patients in the United States.
Additionally, in 2020, Amgen Foundation supported numerous programs that provided science education at no cost to 24 million high school and university-level students worldwide, including young people from low-income and disadvantaged communities.
Amgen is a founding member of OneTen, a coalition aiming to hire 1 million Black Americans over ten years.
Amgen has a high Glassdoor rating of 4.1 out of 5 from over 2900 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Governance
No notable governance highlights.
Practical Islamic Finance concludes:
Amgen has a net positive ESG impact.
Comfort Rating
From Amgen’s business, financial, and ESG reviews, Practical Islamic Finance rates Amgen stock as:
Uncomfortable to invest in from a halal perspective.
Justification for our rating
Amgen’s consistent elevated use of interest to run its operations suggests a systemic reliance on interest. This causes Practical Islamic Finance to be uncomfortable investing in the company from a Halal perspective.
Sources
environment.amgen.com (Targets)
