Is Amgen Stock halal?
Table of Contents
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.