Is Amgen Stock halal?

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?

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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

Amgen 2020 Annual Report

Amgen Q2 2021 10Q

Amgen 2020 ESG Report

Amgen Reviews

environment.amgen.com (Targets) 

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