Connect with us

Business

Amazon.com Announces Second Quarter Results

Published

on

Amazon.com Announces Second Quarter Results

SEATTLE–(BUSINESS WIRE)–Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its second quarter ended June 30, 2020.

  • Operating cash flow increased 42% to $51.2 billion for the trailing twelve months, compared with $36.0 billion for the trailing twelve months ended June 30, 2019.
  • Free cash flow increased to $31.9 billion for the trailing twelve months, compared with $25.0 billion for the trailing twelve months ended June 30, 2019.
  • Free cash flow less principal repayments of finance leases and financing obligations increased to $21.3 billion for the trailing twelve months, compared with $16.1 billion for the trailing twelve months ended June 30, 2019.
  • Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to $19.4 billion for the trailing twelve months, compared with $13.0 billion for the trailing twelve months ended June 30, 2019.
  • Common shares outstanding plus shares underlying stock-based awards totaled 517 million on June 30, 2020, compared with 510 million one year ago.
  • Net sales increased 40% to $88.9 billion in the second quarter, compared with $63.4 billion in second quarter 2019. Excluding the $582 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 41% compared with second quarter 2019.
  • Operating income increased to $5.8 billion in the second quarter, compared with operating income of $3.1 billion in second quarter 2019.
  • Net income increased to $5.2 billion in the second quarter, or $10.30 per diluted share, compared with net income of $2.6 billion, or $5.22 per diluted share, in second quarter 2019.

This was another highly unusual quarter, and I couldn’t be more proud of and grateful to our employees around the globe,” said Jeff Bezos, Amazon founder and CEO. “As expected, we spent over $4 billion on incremental COVID-19-related costs in the quarter to help keep employees safe and deliver products to customers in this time of high demand—purchasing personal protective equipment, increasing cleaning of our facilities, following new safety process paths, adding new backup family care benefits, and paying a special thank you bonus of over $500 million to front-line employees and delivery partners. We’ve created over 175,000 new jobs since March and are in the process of bringing 125,000 of these employees into regular, full-time positions. And third-party sales again grew faster this quarter than Amazon’s first-party sales. Lastly, even in this unpredictable time, we injected significant money into the economy this quarter, investing over $9 billion in capital projects, including fulfillment, transportation, and AWS.”

Highlights

Supporting Employees

  • Amazon’s top priority is providing for the health and safety of our employees and partners, and the company spent more than $4 billion in the second quarter on incremental COVID-19 related initiatives to help keep employees safe, provide additional compensation to our employees and delivery partners, and deliver products to customers.

  • Amazon provided a one-time Thank You bonus totaling over $500 million to all front-line employees and partners who were with the company throughout the month of June.

  • Amazon introduced a new family backup care benefit through Care.com to 650,000 full and part-time Amazon and Whole Foods Market employees in the U.S. This benefit provides employees with up to 10 days of company-subsidized emergency backup child or adult care.

  • Amazon introduced Distance Assistant to help keep employees safe by providing them with live feedback on their social distancing via a 50-inch monitor. Amazon made the software and AI behind this innovation available via open source so that anyone can create their own Distance Assistant at no cost and get up and running with just a monitor, computer, and camera.

  • Amazon is collaborating with national medical care group Crossover Health to pilot Amazon Neighborhood Health Centers, which are new medical facilities available to Amazon employees and their families. The centers will provide access to quality, convenient care while reducing health care costs for employees and Amazon. The pilot includes 20 Crossover Health branded and operated centers in Dallas/Fort Worth, Texas; Phoenix, Arizona; Louisville, Kentucky; Detroit, Michigan; and San Bernardino/Moreno Valley, California.

Investing in Communities

  • Amazon donated more than $10 million of personal protective equipment, including 4.4 million masks and thousands of contactless thermometers, to Direct Relief and Feeding America. The masks went to over 200 of Direct Relief’s partner clinics and Feeding America’s food banks and agencies in 47 states, the District of Columbia, and Puerto Rico.

  • Amazon Business delivered more than 200 million essential health and safety products to healthcare and government organizations in tens of thousands of locations across the U.S.

  • Amazon partnered with food banks and schools to deliver more than six million meals to underserved families and vulnerable seniors in 25 U.S. cities and in communities in Australia, Japan, Singapore, Spain, and the U.K. Amazon plans to deliver one million more meals by the end of this summer.

  • Amazon teamed up with Boys & Girls Clubs of America to launch Camp Prime, offering families fun, safe, and easy ways to help kids stay engaged this summer, including a digital handbook full of camp-themed activities using items from around the house. Camp Prime is free and available to all, and Prime members can extend their experience with content from Prime Video, Prime Reading, and Amazon Music. Amazon also donated $500,000 to Boys & Girls Clubs to help dozens of Club locations offer kids summer activities, including filling “curbside camp” kits available for pickup from Clubs that remain closed.

  • Amazon announced a $10 million donation to 12 organizations that are working to bring about social justice for and improve the lives of Black and African Americans. In addition, Amazon also matched 100% of $8.5 million in donations by Amazon employees, bringing total donations to these organizations from the company and its employees to $27 million.

  • Amazon announced its first ever Amazon Future Engineer Teacher of the Year Award honoring 10 teachers each with a grant valued at more than $50,000 to benefit their schools and students. Amazon also announced its second annual class of Amazon Future Engineer Scholarship recipients, awarding 100 students each with a $40,000 college scholarship and a guaranteed paid internship at Amazon.

Protecting the Planet

  • Verizon, Infosys, Reckitt Benckiser, and Oak View Group signed The Climate Pledge, the commitment co-founded by Amazon and Global Optimism to achieve net-zero carbon by 2040, a decade ahead of the Paris Agreement.

  • Amazon and We Mean Business, a global nonprofit coalition working with businesses to accelerate the transition to a zero-carbon economy, announced a partnership to establish the world’s most comprehensive effort to drive companies to adopt more ambitious carbon emissions reduction goals. The partnership encourages companies to accelerate their goals to meet The Climate Pledge.

  • Amazon launched The Climate Pledge Fund with an initial $2 billion in funding to help support visionary companies whose product and service solutions will facilitate the transition to a zero carbon economy.

  • Amazon announced it is on a path to run on 100% renewable energy by 2025, five years ahead of schedule. As part of The Climate Pledge, Amazon had previously committed to reach 80% renewable energy by 2024 and 100% renewable energy by 2030.

  • Amazon Air secured up to six million gallons of sustainable aviation fuel (SAF) supplied by Shell Aviation and produced by World Energy. The investment will help increase production of SAF by demonstrating growing demand for low-carbon aviation fuel. The fuel is produced from a feedstock of inedible agricultural waste fats and oils and is expected to reduce carbon emissions by up to 20% compared to conventional jet fuel.

  • Amazon secured the naming rights to the new home of Seattle’s NHL team, Kraken, and WNBA team, Storm, and will name it Climate Pledge Arena. Opening in summer 2021, Climate Pledge Arena will be one of the world’s most sustainable arenas. Through a partnership between Amazon, Oak View Group, and NHL Seattle, the rebuild of this venue is expected to be the first net zero carbon certified arena in the world.

  • In Germany, Amazon announced the first project in Europe from Amazon’s $100 million Right Now Climate Fund. The €3.75 million commitment to The Nature Conservancy will support its work, which includes increasing species biodiversity in cities.

Empowering Small and Medium-Sized Businesses

  • Amazon released its 2020 Small and Medium-Sized Business (SMB) Impact Report, highlighting how SMBs selling in its U.S. store have sold more than 3.4 billion products in the past year and created an estimated 1.1 million jobs.

  • In partnership with the British small business support network “Enterprise Nation,” Amazon launched the Amazon Small Business Accelerator, which aims to support more than 200,000 small businesses across the U.K. negatively impacted by the COVID-19 crisis. Amazon hosted a week-long boot camp in the U.K. to help 1,000 offline businesses get online, and offered free services, AWS credits, training, and support.

  • In the U.K., Amazon worked with the British Chambers of Commerce to give up to 1,000 businesses tours of Amazon fulfillment centers, helping other companies learn from the safety measures Amazon has put in place within its own operations so the businesses can re-open safely and kick-start the economy.

  • Amazon in Japan launched Global Selling to allow Japanese sellers to reach new customers across 16 Amazon sites worldwide.

  • Amazon in India announced plans to help digitally enable micro, small, and medium businesses across the country as part of a $1 billion investment pledge. Amazon launched Local Shops on Amazon.in, offering shopkeepers and retailers with physical stores the ability to register to serve more customers from their local areas. Since launch, more than 11,000 sellers have enrolled in the program. In addition, Amazon introduced seller registration and account management services in Hindi to help businesses overcome language barriers. Since launch, more than 10,000 sellers have used Hindi to register on Amazon.in.

Shopping and Entertainment

  • Amazon increased grocery delivery capacity by over 160% and tripled grocery pickup locations to support customers during COVID-19. Online grocery sales tripled in the second quarter when compared with the same period last year.

  • Amazon continues working closely with the U.S. Department of Agriculture to expand access to online grocery shopping for people who rely on Supplemental Nutrition Assistance Program (SNAP) benefits. Amazon now reaches beneficiaries in 39 states and the District of Columbia, providing more than 90% of SNAP households with the ability to use their SNAP benefits online.

  • Amazon established the Amazon Counterfeit Crimes Unit, a team dedicated to bringing counterfeiters who violate the law and Amazon’s policies by listing counterfeit products in its stores to justice. Amazon’s Counterfeit Crimes Unit is a global, multi-disciplinary group composed of former federal prosecutors, experienced investigators, and data analysts who will join Amazon’s existing Customer Trust team working to drive counterfeit to zero.

  • Prime Video launched Watch Parties, a feature that enables Prime members to interact with each other via chat on a desktop while watching Prime Video content, including award-winning TV shows and movies.

  • Prime Video introduced Prime Video Profiles, allowing customers to create and manage up to six profiles within a single account. Each profile offers individualized recommendations, season progress, and watchlists based on individual profile activity.

  • Amazon premiered several Amazon Original series including Upload, from Emmy-winner Greg Daniels, Homecoming Season 2, Bosch Season 6, and Regular Heroes, a docuseries focusing on COVID-19 heroes. Additionally, Amazon premiered several Original movies including Selah and the Spades, The Goldfinch, The Vast of Night, 7500, and the family action-comedy My Spy, along with local Indian movies Ponmagal Vandhal and Gulabo Sitabo.

Devices and Alexa

  • Amazon expanded the portfolio of devices and features that are available to customers around the world. Echo Auto is now available in Australia, Canada, France, Germany, Italy, Spain, and the U.K.; Echo Dot with clock and Echo Studio are now available in Brazil; eero mesh WiFi systems are now available in Australia and Mexico; and Alexa Skill Blueprints are now available in France, Italy, Mexico, and Spain.

  • Amazon announced new or expanded Alexa integrations with global automotive brands including General Motors, Volkswagen, Toyota, and Lexus.

  • Amazon continues to make Alexa smarter and add more ways for customers to stay connected. Customers can now set reminders that play across all of their Alexa devices, use new notification capabilities with Routines, ask Alexa for nutrition tips, receive Announcements on their mobile phones as a push notification, and broadcast a response to an Announcement.

  • The Alexa Fund is supporting the startup community through investments in Molekule, a leader in reinventing air purification, and Amira Learning, the first AI-powered reading assistant. The Alexa Fund also announced its newest cohort of companies participating in Alexa Next Stage powered by Techstars, a program empowering entrepreneurs who are innovating in the field of voice technology.

  • Amazon announced new live content integrations on Fire TV from YouTube TV and Hulu, and expanded discovery options including the new Free tab which helps customers find free movies, TV shows, and more.

  • Ring launched its next-generation original Ring Video Doorbell for improved home security, featuring a higher resolution camera, improved night vision and additional privacy features. Ring also announced Ring Alarm is now available in several additional European countries, including Germany, Norway, and Sweden.

Amazon Web Services

  • Customers are using AWS to lessen the impact of the COVID-19 crisis on families, communities, and businesses. Examples include:

    • With the support of AWS hosting services, the World Health Organization (WHO) launched an app to support health workers around the world in caring for patients with COVID-19, as well as to protect themselves as they do this critical work.

    • Zoom, a provider of enterprise video communications, has long utilized AWS to host a significant portion of its network. In addition to offering a robust free service, since March Zoom has also offered free access to over 100,000 schools to enable them to educate students remotely. Zoom and AWS have worked together to help businesses, schools, and healthcare institutions maintain mission and business continuity as they stay safe at home.

    • Propel, a company focused on building software to help low-income Americans improve their financial health, developed Fresh Electronic Benefit Transfer (EBT), an app built on AWS that has helped more than three million individuals per month manage their benefits under the Supplemental Nutrition Assistance Program (SNAP), save with coupons, and find jobs.

    • UNC Health built a chatbot on AWS to help address increased call volumes to its COVID-19 help line, answering questions from patients seeking guidance on COVID-19 testing and what to do if they or their loved ones were exposed to the virus.

    • Orange County United Way built a highly-secure mobile and web-enabled app on AWS called AssistOC that allows individuals to submit requests for financial assistance to the nonprofit’s Homelessness Prevention Program, launched in response to the current pandemic, via a smartphone or personal computer.

  • AWS announced several significant new customer commitments and migrations during the quarter. Examples include:

    • HSBC, one of the world’s largest financial services organizations, selected AWS as a key, long-term strategic cloud provider to drive their digital transformation and deliver new and personalized banking services for millions of personal banking customers worldwide.

    • Global market intelligence company IHS Markit selected AWS as its preferred cloud provider to help improve scalability and agility to respond to industry changes and develop new products and services.

    • Formula 1 is using a range of AWS services, including machine learning, for six new F1 Insights powered by AWS that will roll out during the 2020 racing season to give fans the ability to compare their favorite drivers and cars and better predict race outcomes.

    • Bundesliga is using AWS machine learning and analytics to enhance the fan experience for Germany’s top football league, delivering new advanced statistics through Bundesliga Match Facts powered by AWS, including Average Positions and xGoals.

    • Capella Space, a provider of on-demand Earth observation data via satellite-based radar, is all-in on AWS, running its entire infrastructure on AWS using a full portfolio of cloud services including AWS Ground Station to deliver satellite data to customers in minutes.

    • Genesys has selected AWS as the preferred cloud provider for Genesys Cloud, an all-in-one solution and leading public cloud contact center platform used by organizations around the world to manage and improve customer relationships across any channel, including voice, text, web chat, and social.

  • AWS announced Amazon Honeycode, a fully-managed service that allows customers to quickly build powerful mobile and web applications – with no programming required. With Amazon Honeycode, customers can create applications using the simplicity and familiarity of a spreadsheet, but with the data management capability of a database, the collaboration and notifications common in business applications, and a truly seamless web and mobile user experience to perform important business functions like managing field agents, performing PO approvals, scheduling weekly events, reporting employee or team activities, tracking task progress, following customer activity, surveying end users, managing content, inventorying resources, and more.

  • AWS announced the general availability of AWS Snowcone, a small, ultra-portable, rugged, and secure edge computing and data transfer device that can fit in a small backpack. At under five pounds, AWS Snowcone is the smallest member of the AWS Snow Family of devices, enabling customers to collect data, process it locally, and move it to AWS. AWS Snowcone is built to withstand harsh conditions, and is designed for a variety of use cases in environments outside of the traditional data center that lack consistent network connectivity and/or require portability.

  • AWS announced the general availability of AWS IoT SiteWise, a managed service that collects data from the plant floor, structures and labels the data, and generates real-time key performance indicators (KPIs) and metrics to help industrial customers make better, data-driven decisions. Customers can use SiteWise to monitor operations across facilities, quickly compute industrial performance metrics, create applications that analyze industrial equipment data to prevent costly equipment issues, and reduce gaps in production.

  • AWS announced the general availability of the sixth generation of Amazon Elastic Compute Cloud (Amazon EC2) with three Arm-based instances (M6g, C6g, R6g) powered by AWS-designed, Arm-based Graviton2 processors, that deliver up to 40% better price and performance than current x86 processor-based instances.

  • AWS announced the general availability of Amazon CodeGuru, a developer-quality service powered by machine learning that provides intelligent recommendations for improving code quality and identifying an application’s most expensive lines of code.

  • AWS announced the general availability of UltraWarm for Amazon Elasticsearch Service, a highly performant, fully-managed, low-cost warm storage tier that provides fast, interactive analytics of log data at one-tenth the cost of existing storage options. UltraWarm for Amazon Elasticsearch Service gives Elasticsearch customers a warm storage tier that both stores large amounts of data cost-effectively and provides the type of interactive experience that Elasticsearch customers expect.

  • AWS announced the general availability of Amazon Kendra, a highly accurate and easy to use enterprise search service powered by machine learning. Amazon Kendra enables organizations to index all of their internal data sources across siloes, makes that data searchable, and allows users to get precise answers to natural language queries instead of trial-and-error keyword search – all with no machine learning expertise required.

  • AWS and Slack announced a multi-year agreement to deliver solutions for enhanced enterprise workforce collaboration. Slack will migrate its Slack Calls capability for all voice and video calling to Amazon Chime, AWS’s communications service that lets users meet, chat, and place business calls. Slack is also leveraging AWS’s global infrastructure to support enterprise customers’ rapid adoption of its platform and to offer them data residency – the ability to choose which country or region their data is stored at rest in while fulfilling compliance requirements.

  • AWS announced a new, global team dedicated to accelerating innovation in the global aerospace and satellite industry. The Aerospace and Satellite Solutions team will bring AWS services and solutions to the space enterprise, and work with customers and partners around the world to: reimagine space system architectures; transform space enterprises; launch new services that process space data on Earth and in orbit; and provide secure, flexible, scalable, and cost-efficient cloud solutions to support government missions and companies advancing space around the world.

  • AWS announced Amazon Interactive Video Service (Amazon IVS), a managed service customers may use to set up live, interactive video streams for web or mobile applications in just a few minutes. Amazon IVS uses the same technology that powers Twitch and allows customers to configure live streams that can be delivered to millions of concurrent viewers globally with interactive features like virtual chat spaces, votes and polls, moderated question and answer sessions, and synchronized promotional elements.

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of July 30, 2020, and are subject to substantial uncertainty. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and customer spending, world events, the rate of growth of the Internet, online commerce, and cloud services, and the various factors detailed below. This guidance reflects our estimates as of July 30, 2020 regarding the impact of the COVID-19 pandemic on our operations, including those discussed above, and is highly dependent on numerous factors that we may not be able to predict or control, including: the duration and scope of the pandemic, including any recurrence; actions taken by governments, businesses, and individuals in response to the pandemic; the impact of the pandemic on global and regional economies and economic activity, workforce staffing and productivity, and our significant and continuing spending on employee safety measures; our ability to continue operations in affected areas; and consumer demand and spending patterns, as well as the effects on suppliers, creditors, and third-party sellers, all of which are uncertain. This guidance also assumes the impacts on consumer demand and spending patterns, including impacts due to concerns over the current economic outlook, will be in line with those experienced during the third quarter to date, and the additional assumptions set forth below. However, it is not possible to determine the ultimate impact on our operations for the third quarter, or whether other currently unanticipated direct or indirect consequences of the pandemic are reasonably likely to materially affect our operations.

Third Quarter 2020 Guidance

  • Net sales are expected to be between $87.0 billion and $93.0 billion, or to grow between 24% and 33% compared with third quarter 2019. This guidance anticipates an unfavorable impact of approximately 20 basis points from foreign exchange rates.

  • Operating income is expected to be between $2.0 billion and $5.0 billion, compared with $3.2 billion in third quarter 2019. This guidance assumes more than $2.0 billion of costs related to COVID-19.

  • This guidance assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded.

A conference call will be webcast live today at 2:30 p.m. PT/5:30 p.m. ET, and will be available for at least three months at amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.

These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income or other taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of claims, litigation, government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains, and develops commercial agreements, proposed and completed acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services, and technologies, system interruptions, government regulation and taxation, and fraud. In addition, additional or unforeseen effects from the COVID-19 pandemic and the global economic climate may give rise to or amplify many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.

Our investor relations website is amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases, which may contain material information about us, and you may subscribe to be notified of new information posted to this site.

About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.

AMAZON.COM, INC.

Consolidated Statements of Cash Flows

(in millions)

(unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

Twelve Months Ended

June 30,

2019

2020

2019

2020

2019

2020

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD

$

23,507

$

27,505

$

32,173

$

36,410

$

20,536

$

22,965

OPERATING ACTIVITIES:

Net income

2,625

5,243

6,186

7,778

12,096

13,180

Adjustments to reconcile net income to net cash from operating activities:

Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other

5,202

5,748

10,056

11,110

18,097

22,843

Stock-based compensation

1,971

2,601

3,245

4,358

6,012

7,977

Other operating expense (income), net

80

282

67

348

200

445

Other expense (income), net

(7

)

(769

)

(142

)

(204

)

152

(310

)

Deferred income taxes

105

465

520

787

958

1,063

Changes in operating assets and liabilities:

Inventories

(2,100

)

(672

)

(1,381

)

720

(3,826

)

(1,176

)

Accounts receivable, net and other

(2,193

)

(2,854

)

(2,594

)

(1,592

)

(6,873

)

(6,680

)

Accounts payable

3,668

8,616

(2,716

)

573

8,060

11,482

Accrued expenses and other

(623

)

1,699

(3,556

)

(1,063

)

(653

)

1,110

Unearned revenue

390

247

1,278

854

1,806

1,286

Net cash provided by (used in) operating activities

9,118

20,606

10,963

23,669

36,029

51,220

INVESTING ACTIVITIES:

Purchases of property and equipment

(3,562

)

(7,459

)

(6,852

)

(14,254

)

(13,938

)

(24,263

)

Proceeds from property and equipment sales and incentives

919

844

1,488

2,212

2,927

4,895

Acquisitions, net of cash acquired, and other

(117

)

(118

)

(1,285

)

(210

)

(2,592

)

(1,385

)

Sales and maturities of marketable securities

5,161

8,138

7,804

19,764

11,706

34,641

Purchases of marketable securities

(9,950

)

(19,209

)

(16,827

)

(34,210

)

(22,919

)

(49,196

)

Net cash provided by (used in) investing activities

(7,549

)

(17,804

)

(15,672

)

(26,698

)

(24,816

)

(35,308

)

FINANCING ACTIVITIES:

Proceeds from short-term debt, and other

222

2,433

307

3,050

972

4,145

Repayments of short-term debt, and other

(73

)

(1,906

)

(363

)

(2,537

)

(958

)

(3,693

)

Proceeds from long-term debt

61

9,918

166

9,994

347

10,699

Repayments of long-term debt

(39

)

(205

)

(101

)

(241

)

(122

)

(1,305

)

Principal repayments of finance leases

(2,327

)

(2,817

)

(4,541

)

(5,417

)

(8,693

)

(10,504

)

Principal repayments of financing obligations

(2

)

(15

)

(3

)

(32

)

(211

)

(56

)

Net cash provided by (used in) financing activities

(2,158

)

7,408

(4,535

)

4,817

(8,665

)

(714

)

Foreign currency effect on cash, cash equivalents, and restricted cash

47

127

36

(356

)

(119

)

(321

)

Net increase (decrease) in cash, cash equivalents, and restricted cash

(542

)

10,337

(9,208

)

1,432

2,429

14,877

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD

$

22,965

$

37,842

$

22,965

$

37,842

$

22,965

$

37,842

SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid for interest on debt

$

147

$

139

$

433

$

430

$

837

$

872

Cash paid for operating leases

838

1,086

1,547

2,115

1,547

3,929

Cash paid for interest on finance leases

150

161

315

329

536

662

Cash paid for interest on financing obligations

4

21

5

43

105

77

Cash paid for income taxes, net of refunds

283

486

451

791

822

1,221

Assets acquired under operating leases

2,220

3,347

3,094

5,755

3,094

10,530

Property and equipment acquired under finance leases

3,307

3,155

5,935

5,321

11,944

13,110

Property and equipment acquired under build-to-suit arrangements

283

482

719

861

2,825

1,504

AMAZON.COM, INC.

Consolidated Statements of Operations

(in millions, except per share data)

(unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2019

2020

2019

2020

Net product sales

$

35,856

$

50,244

$

70,139

$

92,085

Net service sales

27,548

38,668

52,965

72,279

Total net sales

63,404

88,912

123,104

164,364

Operating expenses:

Cost of sales

36,337

52,660

70,257

96,917

Fulfillment

9,271

13,806

17,872

25,337

Technology and content

9,065

10,388

16,991

19,713

Marketing

4,291

4,345

7,955

9,173

General and administrative

1,270

1,580

2,444

3,032

Other operating expense (income), net

86

290

81

360

Total operating expenses

60,320

83,069

115,600

154,532

Operating income

3,084

5,843

7,504

9,832

Interest income

215

135

398

337

Interest expense

(383

)

(403

)

(749

)

(805

)

Other income (expense), net

(27

)

646

138

240

Total non-operating income (expense)

(195

)

378

(213

)

(228

)

Income before income taxes

2,889

6,221

7,291

9,604

Provision for income taxes

(257

)

(984

)

(1,094

)

(1,729

)

Equity-method investment activity, net of tax

(7

)

6

(11

)

(97

)

Net income

$

2,625

$

5,243

$

6,186

$

7,778

Basic earnings per share

$

5.32

$

10.50

$

12.57

$

15.59

Diluted earnings per share

$

5.22

$

10.30

$

12.31

$

15.32

Weighted-average shares used in computation of earnings per share:

Basic

493

500

492

499

Diluted

503

509

503

508

AMAZON.COM, INC.

Consolidated Statements of Comprehensive Income

(in millions)

(unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2019

2020

2019

2020

Net income

$

2,625

$

5,243

$

6,186

$

7,778

Other comprehensive income (loss):

Foreign currency translation adjustments, net of tax of $(6), $(8), $(8) and $13

7

207

(1

)

(668

)

Net change in unrealized gains (losses) on available-for-sale debt securities:

Unrealized gains (losses), net of tax of $(11), $(73), $(11) and $(61)

44

407

76

205

Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $0, $0 and $0

(1

)

(6

)

(6

)

Net unrealized gains (losses) on available-for-sale debt securities

43

401

76

199

Total other comprehensive income (loss)

50

608

75

(469

)

Comprehensive income

$

2,675

$

5,851

$

6,261

$

7,309

AMAZON.COM, INC.

Segment Information

(in millions)

(unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2019

2020

2019

2020

North America

Net sales

$

38,653

$

55,436

$

74,465

$

101,563

Operating expenses

37,089

53,295

70,614

98,111

Operating income

$

1,564

$

2,141

$

3,851

$

3,452

International

Net sales

$

16,370

$

22,668

$

32,563

$

41,774

Operating expenses

16,971

22,323

33,253

41,826

Operating income (loss)

$

(601

)

$

345

$

(690

)

$

(52

)

AWS

Net sales

$

8,381

$

10,808

$

16,076

$

21,027

Operating expenses

6,260

7,451

11,733

14,595

Operating income

$

2,121

$

3,357

$

4,343

$

6,432

Consolidated

Net sales

$

63,404

$

88,912

$

123,104

$

164,364

Operating expenses

60,320

83,069

115,600

154,532

Operating income

3,084

5,843

7,504

9,832

Total non-operating income (expense)

(195

)

378

(213

)

(228

)

Provision for income taxes

(257

)

(984

)

(1,094

)

(1,729

)

Equity-method investment activity, net of tax

(7

)

6

(11

)

(97

)

Net income

$

2,625

$

5,243

$

6,186

$

7,778

Segment Highlights:

Y/Y net sales growth:

North America

20

%

43

%

18

%

36

%

International

12

38

10

28

AWS

37

29

39

31

Consolidated

20

40

18

34

Net sales mix:

North America

61

%

62

%

61

%

62

%

International

26

26

26

25

AWS

13

12

13

13

Consolidated

100

%

100

%

100

%

100

%

AMAZON.COM, INC.

Consolidated Balance Sheets

(in millions, except per share data)

December 31, 2019

June 30, 2020

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

36,092

$

37,466

Marketable securities

18,929

33,925

Inventories

20,497

19,599

Accounts receivable, net and other

20,816

19,918

Total current assets

96,334

110,908

Property and equipment, net

72,705

86,517

Operating leases

25,141

28,537

Goodwill

14,754

14,751

Other assets

16,314

17,601

Total assets

$

225,248

$

258,314

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

47,183

$

51,036

Accrued expenses and other

32,439

33,863

Unearned revenue

8,190

8,997

Total current liabilities

87,812

93,896

Long-term lease liabilities

39,791

42,798

Long-term debt

23,414

33,128

Other long-term liabilities

12,171

14,764

Commitments and contingencies

Stockholders’ equity:

Preferred stock, $0.01 par value:

Authorized shares — 500

Issued and outstanding shares — none

Common stock, $0.01 par value:

Authorized shares — 5,000

Issued shares — 521 and 524

Outstanding shares — 498 and 501

5

5

Treasury stock, at cost

(1,837

)

(1,837

)

Additional paid-in capital

33,658

38,017

Accumulated other comprehensive income (loss)

(986

)

(1,455

)

Retained earnings

31,220

38,998

Total stockholders’ equity

62,060

73,728

Total liabilities and stockholders’ equity

$

225,248

$

258,314

AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except per share data)

(unaudited)

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Y/Y %

Change

Cash Flows and Shares

Operating cash flow — trailing twelve months (TTM)

$

34,360

$

36,029

$

35,332

$

38,514

$

39,732

$

51,220

42

%

Operating cash flow — TTM Y/Y growth

89

%

65

%

33

%

25

%

16

%

42

%

N/A

Purchases of property and equipment, net of proceeds from sales and incentives — TTM

$

11,316

$

11,011

$

11,868

$

12,689

$

15,395

$

19,368

76

%

Principal repayments of finance leases — TTM (1)

$

7,649

$

8,693

$

8,754

$

9,628

$

10,013

$

10,504

21

%

Principal repayments of financing obligations — TTM (1)

$

266

$

211

$

129

$

27

$

43

$

56

(73

)%

Equipment acquired under finance leases — TTM (1) (2)

$

10,909

$

11,656

$

12,580

$

12,916

$

12,209

$

11,952

3

%

Principal repayments of all other finance leases — TTM (1) (3)

$

76

$

176

$

302

$

392

$

407

$

415

136

%

Free cash flow — TTM (4)

$

23,044

$

25,018

$

23,464

$

25,825

$

24,337

$

31,852

27

%

Free cash flow less principal repayments of finance leases and financing obligations

— TTM (1) (5)

$

15,129

$

16,114

$

14,581

$

16,170

$

14,281

$

21,292

32

%

Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations — TTM (1) (6)

$

11,793

$

12,975

$

10,453

$

12,490

$

11,678

$

19,429

50

%

Common shares and stock-based awards outstanding

507

510

511

512

513

517

1

%

Common shares outstanding

492

494

495

498

499

501

1

%

Stock-based awards outstanding

15

16

16

14

14

16

%

Stock-based awards outstanding — % of common shares outstanding

3.0

%

3.3

%

3.2

%

2.9

%

2.8

%

3.2

%

N/A

Results of Operations

Worldwide (WW) net sales

$

59,700

$

63,404

$

69,981

$

87,437

$

75,452

$

88,912

40

%

WW net sales — Y/Y growth, excluding F/X

19

%

21

%

25

%

21

%

27

%

41

%

N/A

WW net sales — TTM

$

241,546

$

252,064

$

265,469

$

280,522

$

296,274

$

321,782

28

%

WW net sales — TTM Y/Y growth, excluding F/X

26

%

23

%

22

%

22

%

23

%

28

%

N/A

Operating income

$

4,420

$

3,084

$

3,157

$

3,879

$

3,989

$

5,843

89

%

F/X impact — favorable (unfavorable)

$

84

$

58

$

22

$

16

$

63

$

111

N/A

Operating income — Y/Y growth (decline), excluding F/X

125

%

1

%

(16

)%

2

%

(11

)%

86

%

N/A

Operating margin — % of WW net sales

7.4

%

4.9

%

4.5

%

4.4

%

5.3

%

6.6

%

N/A

Operating income — TTM

$

14,914

$

15,014

$

14,448

$

14,541

$

14,109

$

16,868

12

%

Operating income — TTM Y/Y growth (decline), excluding F/X

190

%

99

%

32

%

16

%

(6

)%

11

%

N/A

Operating margin — TTM % of WW net sales

6.2

%

6.0

%

5.4

%

5.2

%

4.8

%

5.2

%

N/A

Net income

$

3,561

$

2,625

$

2,134

$

3,268

$

2,535

$

5,243

100

%

Net income per diluted share

$

7.09

$

5.22

$

4.23

$

6.47

$

5.01

$

10.30

97

%

Net income — TTM

$

12,005

$

12,096

$

11,347

$

11,588

$

10,563

$

13,180

9

%

Net income per diluted share — TTM

$

23.96

$

24.08

$

22.57

$

23.01

$

20.93

$

26.04

8

%

______________________________

(1)

On January 1, 2019, we adopted accounting guidance amending the accounting for leases, which did not have a material impact on our 2019 operating results. Prior period amounts were not retrospectively adjusted. Under this new guidance, leases we previously referred to as “capital leases” are now referred to as “finance leases.” Leases we previously referred to as “finance leases” are now referred to as “financing obligations.”

(2)

For the twelve months ended June 30, 2019 and 2020, this amount relates to equipment included in “Property and equipment acquired under finance leases” of $11,944 million and $13,110 million.

(3)

For the twelve months ended June 30, 2019 and 2020, this amount relates to property included in “Principal repayments of finance leases” of $8,693 million and $10,504 million.

(4)

Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, net of proceeds from sales and incentives.”

(5)

Free cash flow less principal repayments of finance leases and financing obligations is free cash flow reduced by “Principal repayments of finance leases” and “Principal repayments of financing obligations.”

(6)

Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations is free cash flow reduced by equipment acquired under finance leases, which is included in “Property and equipment acquired under finance leases,” principal repayments of all other finance lease liabilities, which is included in “Principal repayments of finance leases,” and “Principal repayments of financing obligations.”

AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions)

(unaudited)

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Y/Y %

Change

Segments

North America Segment:

Net sales

$

35,812

$

38,653

$

42,638

$

53,670

$

46,127

$

55,436

43

%

Net sales — Y/Y growth, excluding F/X

17

%

20

%

24

%

22

%

29

%

44

%

N/A

Net sales — TTM

$

146,453

$

152,938

$

161,228

$

170,773

$

181,088

$

197,871

29

%

Operating income

$

2,287

$

1,564

$

1,282

$

1,900

$

1,312

$

2,141

37

%

F/X impact — favorable (unfavorable)

$

13

$

7

$

6

$

(3

)

$

5

$

(4

)

N/A

Operating income — Y/Y growth (decline), excluding F/X

98

%

(15

)%

(37

)%

(16

)%

(43

)%

37

%

N/A

Operating margin — % of North America net sales

6.4

%

4.0

%

3.0

%

3.5

%

2.8

%

3.9

%

N/A

Operating income — TTM

$

8,405

$

8,134

$

7,384

$

7,033

$

6,057

$

6,634

(18

)%

Operating margin — TTM % of North America net sales

5.7

%

5.3

%

4.6

%

4.1

%

3.4

%

3.4

%

N/A

International Segment:

Net sales

$

16,192

$

16,370

$

18,348

$

23,813

$

19,106

$

22,668

38

%

Net sales — Y/Y growth, excluding F/X

16

%

17

%

21

%

15

%

20

%

41

%

N/A

Net sales — TTM

$

67,184

$

68,941

$

71,740

$

74,723

$

77,637

$

83,935

22

%

Operating income (loss)

$

(90

)

$

(601

)

$

(386

)

$

(617

)

$

(398

)

$

345

N/A

F/X impact — favorable (unfavorable)

$

(39

)

$

(36

)

$

(34

)

$

(7

)

$

(5

)

$

32

N/A

Operating income/loss — Y/Y growth (decline), excluding F/X

(92

)%

15

%

(8

)%

(5

)%

338

%

N/A

N/A

Operating margin — % of International net sales

(1.0

)%

(3.7

)%

(2.1

)%

(2.6

)%

(2.1

)%

1.5

%

N/A

Operating income (loss) — TTM

$

(1,610

)

$

(1,718

)

$

(1,718

)

$

(1,693

)

$

(2,001

)

$

(1,055

)

(39

)%

Operating margin — TTM % of International net sales

(2.4

)%

(2.5

)%

(2.4

)%

(2.3

)%

(2.6

)%

(1.3

)%

N/A

AWS Segment:

Net sales

$

7,696

$

8,381

$

8,995

$

9,954

$

10,219

$

10,808

29

%

Net sales — Y/Y growth, excluding F/X

42

%

37

%

35

%

34

%

33

%

29

%

N/A

Net sales — TTM

$

27,909

$

30,185

$

32,501

$

35,026

$

37,549

$

39,976

32

%

Operating income

$

2,223

$

2,121

$

2,261

$

2,596

$

3,075

$

3,357

58

%

F/X impact — favorable (unfavorable)

$

110

$

87

$

50

$

26

$

63

$

83

N/A

Operating income — Y/Y growth, excluding F/X

51

%

24

%

6

%

18

%

36

%

54

%

N/A

Operating margin — % of AWS net sales

28.9

%

25.3

%

25.1

%

26.1

%

30.1

%

31.1

%

N/A

Operating income — TTM

$

8,119

$

8,598

$

8,782

$

9,201

$

10,053

$

11,289

31

%

Operating margin — TTM % of AWS net sales

29.1

%

28.5

%

27.0

%

26.3

%

26.8

%

28.2

%

N/A

AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except employee data)

(unaudited)

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Y/Y %

Change

Net Sales

Online stores (1)

$

29,498

$

31,053

$

35,039

$

45,657

$

36,652

$

45,896

48

%

Online stores — Y/Y growth, excluding F/X

12

%

16

%

22

%

15

%

25

%

49

%

N/A

Physical stores (2)

$

4,307

$

4,330

$

4,192

$

4,363

$

4,640

$

3,774

(13

)%

Physical stores — Y/Y growth, excluding F/X

1

%

1

%

(1

)%

(1

)%

8

%

(13

)%

N/A

Third-party seller services (3)

$

11,141

$

11,962

$

13,212

$

17,446

$

14,479

$

18,195

52

%

Third-party seller services — Y/Y growth, excluding F/X

23

%

25

%

28

%

31

%

31

%

53

%

N/A

Subscription services (4)

$

4,342

$

4,676

$

4,957

$

5,235

$

5,556

$

6,018

29

%

Subscription services — Y/Y growth, excluding F/X

42

%

39

%

35

%

32

%

29

%

30

%

N/A

AWS

$

7,696

$

8,381

$

8,995

$

9,954

$

10,219

$

10,808

29

%

AWS — Y/Y growth, excluding F/X

42

%

37

%

35

%

34

%

33

%

29

%

N/A

Other (5)

$

2,716

$

3,002

$

3,586

$

4,782

$

3,906

$

4,221

41

%

Other — Y/Y growth, excluding F/X

36

%

37

%

45

%

41

%

44

%

41

%

N/A

Stock-based Compensation Expense

Cost of sales

$

24

$

43

$

39

$

43

$

41

$

76

79

%

Fulfillment

$

234

$

360

$

301

$

286

$

260

$

417

16

%

Technology and content

$

675

$

1,077

$

966

$

1,007

$

961

$

1,421

32

%

Marketing

$

209

$

307

$

298

$

322

$

332

$

456

49

%

General and administrative

$

132

$

184

$

175

$

182

$

163

$

231

25

%

Total stock-based compensation expense

$

1,274

$

1,971

$

1,779

$

1,840

$

1,757

$

2,601

32

%

Other

WW shipping costs

$

7,320

$

8,134

$

9,608

$

12,884

$

10,936

$

13,652

68

%

WW shipping costs — Y/Y growth

21

%

36

%

46

%

43

%

49

%

68

%

N/A

WW paid units — Y/Y growth (6)

10

%

18

%

22

%

22

%

32

%

57

%

N/A

WW seller unit mix — % of WW paid units (6)

53

%

54

%

53

%

53

%

52

%

53

%

N/A

Employees (full-time and part-time; excludes contractors & temporary personnel)

630,600

653,300

750,000

798,000

840,400

876,800

34

%

Employees (full-time and part-time; excludes contractors & temporary personnel) — Y/Y growth

12

%

13

%

22

%

23

%

33

%

34

%

N/A

________________________

(1)

Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, music, videos, games, and software. These product sales include digital products sold on a transactional basis. Digital product subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.”

(2)

Includes product sales where our customers physically select items in a store. Sales from customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.”

(3)

Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.

(4)

Includes annual and monthly fees associated with Amazon Prime memberships, as well as audiobook, digital video, digital music, e-book, and other non-AWS subscription services.

(5)

Primarily includes sales of advertising services, as well as sales related to our other service offerings.

(6)

Excludes the impact of Whole Foods Market.

Amazon.com, Inc.

Certain Definitions

Customer Accounts

  • References to customers mean customer accounts established when a customer places an order through one of our stores. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Payments customers, AWS customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period.

Seller Accounts

  • References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period.

AWS Customers

  • References to AWS customers mean unique AWS customer accounts, which are unique customer account IDs that are eligible to use AWS services. This includes AWS accounts in the AWS free tier. Multiple users accessing AWS services via one account ID are counted as a single account. Customers are considered active when they have had AWS usage activity during the preceding one-month period.

Units

  • References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers in our stores as well as Amazon-owned items sold in other stores. Units sold are paid units and do not include units associated with AWS, certain acquisitions, certain subscriptions, rental businesses, or advertising businesses, or Amazon gift cards.

Business

Radius Health Business Update

Published

on

Radius Health Business Update
  • TYMLOS® new patient adds in April: modest growth vs. previous 4-month trailing averages

  • ~67% of new patients in April were initiated by a fracture focused bone health account

  • Meaningful FDA guidance on generic peptide requirements published on May 19, 2021

  • Anticipate abaloparatide depot formulation technical development work to commence 2H, 2021

  • RAD011 Type C meeting with the FDA on Prader Willi Syndrome (“PWS”) the week of June 14

BOSTON, June 02, 2021 (GLOBE NEWSWIRE) — Radius Health, Inc. (“Radius” or the “Company”) (NASDAQ: RDUS), provided a business update covering continued progress for the Company. Additional business updates will be provided as progress is achieved.

ABALOPARATIDE ASSET

U.S. TYMLOS Commercial Performance:

  • TYMLOS added ~1,650 new patients in April; 1% growth vs. trailing 4-month average

  • New patients: defined as those who have been prescribed TYMLOS and received their first dose

  • ~67% of new patients in April were initiated by a fracture focused bone health account

  • Added 45 new fracture / bone health focused prescribers during the month of April

Life Cycle:

  • ATOM (Male) Phase 3 pivotal study on schedule for readout: 2H, 2021

  • wearABLe (Transdermal System) Phase 3 pivotal study on schedule for readout: 2H, 2021

  • Anticipate abaloparatide depot formulation technical development work to commence 2H, 2021

Geographic Footprint:

  • Europe: re-submission expected for abaloparatide SC to EMA in 2H, 2021

  • Canada: abaloparatide SC submission – by our partner – expected in January, 2022

  • Japan: ‘planning discussions’ with PMDA, a precursor to potential abaloparatide-TD agreement with Teijin

  • Rest of world: multiple discussions ongoing with variety of counterparties

Intellectual Property Portfolio Advancement:

  • Three U.S. patents are presently listed in the Orange Book for TYMLOS: U.S. Patent No. 7,803,770 which expires on April 28, 2031 and U.S. Patent Nos. 8,148,333 and 8,748,382 which each expire on October 30, 2027

  • A fourth U.S. patent, U.S. Patent No. 10,996,208 directed to certain methods of analyzing abaloparatide to detect and quantify presence of beta Asp10, was issued on May 4, 2021 and will be added to the Orange book listing shortly; this patent expires on April 30, 2038

  • A new Japanese patent covering the abaloparatide transdermal system and its use in treating osteoporosis was granted in April, 2021 and will expire October 8, 2036

FDA Guidance on Synthetic Peptides:

On May 19, 2021 the FDA published updated guidance and requirements for synthetic peptides and what would be required in any generic filings and advancement. Radius views this new guidance as meaningful in assessing the probability of a generic synthetic peptide being filed and gaining market entry.

In sum, the Company views these newly communicated FDA requirements as making it significantly more challenging to advance and develop a generic version of abaloparatide.

The key components of the new FDA guidelines include:

  • Recombinantly sourced peptides cannot be approved in an ANDA and must be submitted in a 505(b)(2) NDA

  • Explicit references to the potential for significant consequences if anti-drug antibodies cross-react against endogenous peptides

  • New impurities must be within the FDA’s threshold; if greater, must be submitted as a 505(b)(2)

  • Explicit expectation: ANDA with new impurity must evaluate immunogenicity risks prior to filing

RAD011 ASSET

  • FDA Type C meeting for PWS will take place the week of June 14

  • Written minutes from the FDA meeting expected by the end of July

  • Post FDA discussion, expectation is to initiate a pivotal PWS trial before year end

  • Additional orphan indications being assessed in parallel – decisions and clarity in 2H, 2021

  • Multiple Advisory Board meetings completed: U.S., UK, EU for PWS plus a Psychiatry meeting

  • Internal team formed: clinical, pharm. science, regulatory, bio-stats, CMC, global franchise

  • External team established: manufacturing & supply chain, development, regulatory, advocacy

About Radius
Radius is a commercialized biopharmaceutical company committed to serving patients with unmet medical needs in endocrinology and other therapeutic areas. Radius’ lead product, TYMLOS® (abaloparatide) injection, was approved by the U.S. Food and Drug Administration for the treatment of postmenopausal women with osteoporosis at high risk for fracture. The Radius clinical pipeline includes investigational abaloparatide injection for potential use in the treatment of men with osteoporosis; an investigational abaloparatide transdermal system for potential use in the treatment of postmenopausal women with osteoporosis; the investigational drug, elacestrant (RAD1901), for potential use in the treatment of hormone-receptor positive breast cancer out-licensed to Menarini Group; and the investigational drug RAD011, a synthetic cannabidiol oral solution with potential utilization in multiple endocrine and metabolic orphan diseases, initially targeting Prader-Willi syndrome.

About TYMLOS (abaloparatide) injection
TYMLOS (abaloparatide) injection was approved by the U.S. Food and Drug Administration for the treatment of postmenopausal women with osteoporosis at high risk for fracture defined as history of osteoporotic fracture, multiple risk factors for fracture, or patients who have failed or are intolerant to other available osteoporosis therapy.

About ATOM Phase 3 Study
The ATOM Phase 3 study is a randomized, double-blind, placebo-controlled study to assess efficacy and safety of abaloparatide injection in 228 men with osteoporosis. The primary endpoint is change in lumbar spine BMD at 12 months compared with placebo, and if successful, will form the basis of a supplemental NDA seeking to expand the use of TYMLOS to treat men with osteoporosis at high risk for fracture.

About the Abaloparatide Transdermal System and wearABLe Phase 3 Study
The abaloparatide transdermal system was developed in a collaboration between Radius and Kindeva Drug Delivery (“Kindeva”) (formerly 3M Drug Delivery Systems) with the application of Kindeva’s innovative microstructured transdermal system technology. The Phase 3 wearABLe study is the first pivotal study to evaluate treatment using a novel non-injectable delivery of an anabolic therapy. The wearABLe study is a pivotal, randomized, open label, active-controlled, bone mineral density (“BMD”) non-inferiority bridging study that will evaluate the efficacy and safety of abaloparatide transdermal system versus TYMLOS (abaloparatide) injection in approximately 500 patients with postmenopausal osteoporosis at high risk for fracture. The primary endpoint of the study is the percentage change in lumbar spine BMD at 12 months.

About Elacestrant (RAD1901) and EMERALD Phase 3 Study
Elacestrant is a selective estrogen receptor degrader (SERD), out-licensed to Menarini Group, which is being evaluated for potential use as a once daily oral treatment in patients with ER+/ HER2- advanced breast cancer. Studies completed to date indicate that the compound has the potential for use as a single agent or in combination with other therapies for the treatment of breast cancer. The EMERALD Phase 3 trial is a randomized, open label, active-controlled study evaluating elacestrant as second- or third-line monotherapy in ER+/HER2- advanced/metastatic breast cancer patients. The study has enrolled 466 patients who have received prior treatment with one or two lines of endocrine therapy, including a cyclin-dependent kinase (CDK) 4/6 inhibitor. Patients in the study were randomized to receive either elacestrant or the investigator’s choice of an approved hormonal agent. The primary endpoint of the study is progression-free survival (PFS) in the overall patient population and in patients with estrogen receptor 1 gene (ESR1) mutations. Secondary endpoints include evaluation of overall survival (OS), objective response rate (ORR), and duration of response (DOR).

About RAD011
Investigational drug RAD011 is a pharmaceutical-grade synthetic cannabidiol oral solution, manufactured utilizing traditional pharmaceutical manufacturing processes. The product has purity specifications that meet standardized regulatory and quality control requirements and, compared to the process of developing a plant-derived product, the synthetic manufacturing process usually enables increased consistency and greater precision in the product supply. RAD011 has been assessed in over 150 patients across multiple indications and has potential utilization in multiple endocrine and metabolic orphan diseases. Radius is initially targeting Prader-Willi syndrome (PWS) and anticipates initiating a pivotal Phase 2/3 study for patients with PWS in the second half of 2021 pending regulatory discussion with the U.S. Food and Drug Administration (FDA).

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our expectations regarding continued commercialization of TYMLOS in the U.S.; our expectations regarding our clinical trials, studies and other regulatory initiatives, including our wearABLe and ATOM Phase 3 clinical trials; and the progress in the development of our product candidates, including RAD011.

These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the adverse impact the ongoing COVID-19 pandemic is having and is expected to continue to have on our business, financial condition and results of operations, including our commercial operations and sales, clinical trials, preclinical studies, and employees; quarterly fluctuation in our financial results; our dependence on the success of TYMLOS, and our inability to ensure that TYMLOS will obtain regulatory approval outside the U.S. or be successfully commercialized in any market in which it is approved, including as a result of risk related to coverage, pricing and reimbursement; risks related to competitive products; risks related to our ability to successfully enter into collaboration, partnership, license or similar agreements; risks related to clinical trials, including our reliance on third parties to conduct key portions of our clinical trials and uncertainty that the results of those trials will support our product candidate claims; the risk that adverse side effects will be identified during the development of our product candidates or during commercialization, if approved; risks related to manufacturing, supply and distribution; and the risk of litigation or other challenges regarding our intellectual property rights. These and other important risks and uncertainties discussed in our filings with the Securities and Exchange Commission, or SEC, including under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ending December 31, 2020 and subsequent filings with the SEC, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Investor & Media Relations Contact:
Ethan Holdaway
Email: investor-relations@radiuspharm.com
Phone: (617) 583-2017

Continue Reading

Business

Central Maine business briefs: UMA vice president receives award

Published

on

Central Maine business briefs: Kennebec Savings Bank, Kennebec Federal Savings merger approved

 

Jonathan Henry, University of Maine at Augusta vice president of enrollment management and marketing, received the Martin Gallant Distinguished Counseling Professional Award from the Maine Counseling Association recognizing his distinguished career in the field. Jeremy Bouford, UMA coordinator of recruitment and outgoing president of the counseling association, presented him the award at the organization’s annual meeting this May.

“It was my distinct pleasure to present this award to Jon Henry not only on behalf of the Maine Counseling Association but also as a trusted and valued colleague,” said Bouford, according to a news release from UMA.

Jonathan Henry Photo courtesy of UMA

“I am honored to receive this award from the Maine Counseling Association,” said Henry. “Over 36 years in the admissions counseling and enrollment profession, I recognize now more than ever the role that having a counseling background has played in helping me succeed in my work with students, and helping to administer a university.”

Henry has worked in college admissions counseling and enrollment management for 36 years, the last 22 in Maine.

“Marty” Gallant was a long-serving school counselor in Caribou, who was actively involved with and dedicated to the Maine Counseling Association and the profession of school counseling. Maine Counseling Association established this award to honor him upon his retirement in 2016.

Association members work in a variety of settings across the profession including K-12 schools, colleges and universities, community-based agencies, clinical facilities and private practice.

Benton company names director of programs

BENTON — Assistance Plus,  a 29-year-old home health care, behavioral health and intellectual disability agency headquartered in Benton, has promoted Natalie Childs to director of programs.

Natalie Childs Contributed photo

Childs has been employed by Assistance Plus since June 2010, starting as a daily living support specialist, and most recently serving as the organization’s BH/DD program manager. According to Crystal Bailey, the agency’s human resources director, the promotion is a result of her hard work and dedication. Natalie will remain in her current office location at the company’s headquarters in Benton.

Childs graduated from Erskine Academy and holds a bachelor’s degree in criminal justice from Thomas College. She  is completing a master’s degree in health care administration from Fitchburg State University.

Assistance Plus has offices in Benton, Waterville and Wilton.

2021 Mainebiz Woman to Watch nominees sought

PORTLAND — Mainebiz seeks nominations for female business owners, CEOs, presidents and top executives with established track records of success and who have been trailblazers and mentors to be its 2021 Women to Watch.

Criteria:
• The nominee must be the president, CEO or executive director at her company or organization.
• The nominee should have an established track record of business success.
• The nominee and her company must have made outstanding contributions to their company, industry and community.

Nominate a 2021 Mainebiz Woman to Watch by June 28. Visit mainebiz.biz/nominations and complete the short form.

The Women to Watch awards program is sponsored by Drummond Woodsum, Northeast Delta Dental, TD Bank and Vistage. Chosen nominees will be featured in the Aug. 9 issue of Mainebiz and will be honored at the annual Women to Watch reception in person during the middle of September. The date and location will be announced soon.

Kennebec Savings Bank announces new hires

Paige O’Donnell Contributed photo

AUGUSTA – Kennebec Savings Bank President and CEO Andrew Silsby recently announced two new hires, each of whom come with strong backgrounds in banking and customer service.

Paige O’Donnell, who has joined Kennebec Savings Bank as vice president of retail banking, brings more than eight years of banking experience. Her most recent position was on TD Bank’s Small Business Banking Team as their team manager.

Amanda Dyer Contributed photo

“Paige brings new insight and energy to our retail team,” said Silsby, according to a news release from the bank. “We are fortunate to have her join Kennebec Savings Bank at such an exciting time in our history. The bank is growing, and Paige will help us continue to offer competitive and quality products to our customers.”

Amanda Dyer joins the bank with 12 years of experience. Prior to joining the bank, Dyer served as branch manager and loan officer for Norway Savings Bank at their Topsham location. Dyer is originally from the Freeport area and graduated from Freeport High School.

“Amanda will be a great asset to our Freeport Team,” said Silsby. “She is familiar with the Freeport area, and will bring valuable knowledge and expertise to our team. We look forward to her leadership.”

Kennebec Behavioral Health leaders recognized

Rob Rogers Contributed photo

AUGUSTA — At the 2021 Maine Prevention Professionals Conference held on May 19, KBH’s Robert Rogers was recognized with the 2021 Neill E. Miner Memorial Prevention Award. This award recognizes an individual who has made a significant contribution in the field of prevention. He has been at the forefront of so many initiatives and approaches to evidence-based prevention in Maine. He has been able to forge a unique bridge between the prevention and treatment disciplines. “Rob is an extraordinary prevention professional who has made significant contributions to the field and positively impacted the lives of countless youth and adults throughout central Maine,” said Tom McAdam, KBH chief executive officer, according to a news release from KBH. A surprise guest, McKenna Rogers, Rob’s daughter who also works in behavioral health, presented him with the award.

Dr. Alane O’Connor Contributed photo

At the Co-Occurring Collaborative Serving Maine Annual Summit held on May 6, the Visionary Leadership award was presented to Dr. Alane O’Connor. O’Connor is the first director of perinatal addiction treatment at Maine Medical Center, serving pregnant women in the Portland area. O’Connor also provides addiction medicine through Kennebec Behavioral Health’s Opioid Health Home in Skowhegan and is chairperson of Maine’s Opioid Response Clinical Advisory Committee. The collaborative’s Visionary Leadership Award recognizes an individual, organization or an initiative in the behavioral health care field that has demonstrated outstanding leadership in improving the lives of individuals with mental illnesses and substance use disorders and/or their communities. “For her dedication to advance the quality of substance use treatment and raising awareness to the needs of pregnant and parenting women living with this disease,” said Liam Shaw, CCSME Board Member, in the release.

Kennebec Behavioral Health was founded in 1960 and operates clinics in Waterville, Skowhegan, Winthrop, Augusta and Farmington.

Northern Light Health announces finance leadership changes

Chris Frauenhofer, vice president of finance of Northern Light Inland Hospital and interim administrator of Northern Light Continuing Care, Lakewood in Waterville, has been named as the new vice president of finance for Northern Light Health’s system Medical Group.

Chris Frauenhofer

Frauenhofer joined Northern Light Health in 2013, starting at Maine Coast Memorial Hospital before moving to Inland Hospital in 2017. Before joining Northern Light Health, he served in senior finance roles for more than 20 years at hospitals in New York, including Alice Hyde Medical Center and Niagara Falls Memorial Medical Center.

Frauenhofer received a master’s in business administration degree from Niagara University (New York) and a Bachelor of Science degree in business administration/registered accounting (program from State University of New York at Buffalo).

Frauenhofer lives in Mariaville. He will remain in the interim role at Lakewood until a new administrator is recruited.

Randy Clark Contributed photo

Randy Clark, vice president of finance and operations at Northern Light Sebasticook Valley Hospital in Pittsfield, will expand his duties to include Inland Hospital and Lakewood, becoming vice president of finance for both hospitals and the continuing care facility.

A resident of Vassalboro, Clark just celebrated 25 years with Northern Light Health. He started as a controller at Sebasticook Valley Hospital in 1996 and became vice president of finance in 2005. In 2016, operations was added to his leadership role. For a few years, he oversaw finance as vice president for both CA Dean Hospital in Greenville and Sebasticook Valley Hospital.

Clark earned his Bachelor of Science degree in business administration from the University of Maine (Orono) and his Master of Business Administration degree from Thomas College (Waterville).

“Chris and Randy have been vital to our local leadership teams, and integral to system finance work. We know they will continue to help our system and member organizations succeed in their new and expanded roles — not only when it comes to finance, but with all aspects of our mission to improve the health of the people and communities we serve. Both Chris and Randy have a passion for excellent service and finding new ways to deliver on our brand promise,” said Terri Vieira, president of Inland Hospital, Continuing Care, Lakewood, and Sebasticook Valley Hospital, according to a news release from Northern Light Health.

Maine Dental Association partners with Maine Needs

The Maine Dental Association recently partnered with nonprofit organization Maine Needs to assemble and distribute 200 cleaning and hygiene kits to four sites.

The association, though its donation campaign called Maine Needs a Smile, collected personal hygiene items such as toothbrushes, toothpaste, soap, deodorant and shampoo, and basic cleaning supplies, such as laundry detergent, all-purpose cleaner and trash bags, to help Maine families in need.

The initiative was started by three MDA member dentists, Dr. Meg Dombroski, Dr. Kathryn Horutz and Dr. Nicole Kimmes, along with MDA Executive Director Angela Westhoff. The group was familiar with the Maine Needs nonprofit organization, which strives to help individuals and families in Maine meet basic, material needs by providing donated clothing and essential products and household items, and which partners with schools, caseworkers, nurses and nonprofits throughout the state to provide those material resources.

“One of the most rewarding aspects of dentistry is the opportunity to make a difference in people’s lives every day. The Maine Needs A Smile community effort made it possible for dental professionals across Maine to join together to have a positive impact beyond our chairs,” said Kimmes, according to a news release from the association

One of the ways Maine Needs provides for individuals and families is through different “kits” that the public can put together and donate.

The Maine Needs a Smile initiative originally had a goal of assembling 100 cleaning and hygiene kits. Because of the support of MDA member dentists, dental staff, and the general public, 200 kits were put together and were distributed between four sites. Kits were distributed at the Community Concepts Early Learning Center in Farmington, River Valley Free Store in Mexico, Kaydenz Kitchen Food Pantry in Lewiston, and Penney Memorial United Baptist Church in Augusta.

Gardiner FCU gives to local food pantries, organizations

Gardiner Federal Credit Union recently hosted a small reception to distribute the funds raised in 2020. The guests were representatives of area food pantries and organizations that help local people with food insecurities. There are eight organizations, each receiving a check in the amount of $2,482.38.

When the pandemic hit the number of people in need of these services grew. There were many new faces. Initially, some pantries were overwhelmed. Thankfully, those able to give dug deep and helped them make certain no one was turned away empty-handed. Individuals, grocers and businesses helped keep them afloat.

The Tanzanian proverb, “Little by little, a little becomes a lot.” In most cases, GFCU raises its Ending Hunger funds, one dollar at a time. So, to the staff and the members, they may think that dollar won’t make a difference, but it does. In this case it added up to almost 20,000 of those dollars. Their efforts and the generosity of many, do make a difference and the funds add up to a lot.

Throughout the months of June and July, GFCU will sell Cash Calendars for Ending Hunger. The calendars are $10 each. A total of $2,400 in prizes, will be drawn each weekday in August. Winners will receive either $100 or $200, depending on which day(s) they win. Anyone with $10 can purchase a calendar. It is not necessary to be a member to support any of its fundraisers.

For more business news, visit CentralMaine.com.

« Previous

Continue Reading

Business

Here are 100+ AAPI-owned businesses to shop in 2021

Published

on

Here are 100+ AAPI-owned businesses to shop in 2021

As it did for companies across the globe, pandemic-related freight issues increasingly complicated the supply chain for Sahra Nguyen, founder and CEO of Nguyen Coffee Supply — and made it much more expensive to manage. And the spike in anti-Asian American and Pacific Islander violence increasingly strained an already difficult year:

“The biggest challenge is staying mentally, emotionally and physically safe so that I can continue to show up for my business, family and community,” said Nguyen.

AAPI-owned businesses have suffered tremendously since the onset Covid, according to a survey from the Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship (ACE). Of the approximately 900 AAPI small business owners surveyed…

  • More than 80 percent reported negative effects
  • 10 percent have closed their business
  • And 45 percent have lost or let go of employees

In general, there’s been a 169-percent increase in hate crimes in major cities — nonprofit advocacy group Stop AAPI Hate received more than 6,600 reports of anti-AAPI violence since it launched in March 2020 — unemployment rates rose disproportionately and solutions have made headway, such as the Covid-19 Hate Crimes Act. All of it has added to an increased national focus on the challenges and realities that AAPI communities face.

Within the past year, the visibility of anti-AAPI violence in the U.S. — which goes back centuries — caused a large mobilization of people, organizations and retailers to up their support of the AAPI community through advocacy, donations and awareness in light of AAPI Heritage Month. Multiple online retailers and brands have been increasing efforts to highlight AAPI-owned businesses.

  • Amazon and Etsy launched storefronts highlighting AAPI small businesses.
  • Reviews site Yelp announced a new feature last month by which businesses can self-identify as “Asian-owned,” making it easier for shoppers to find them.
  • Shop by Shopify, a free app to navigate small businesses, unveiled a directory of Asian-owned businesses in March.
  • Food delivery giant Grubhub began its Donate the Change program this month, giving all proceeds to National ACE and AAPI-owned restaurants across the nation.

Jan Lo, CEO of travel brand Lo & Sons, said reports of attacks on members of the AAPI community this year — specifically involving anyone around his mom’s age — brought his family’s heritage a lot more personal. “We’re extremely proud of our AAPI heritage, but we have also tried to build an ethos around inclusivity,” he said. The challenges “can also be viewed as opportunities, as I think many people can connect to our story of our mom inspiring her sons to help her achieve her professional dreams — not just because we’re Asian.”

AAPI Heritage Month “gives us an opportunity to lift each other up, to celebrate and express pride in different parts of our community,” explained Ian Shin, assistant professor of history and American culture at the University of Michigan, adding that it also offers an “opportunity to revisit history and remind people that, in fact, anti-AAPI violence is not un-American — it’s woven into the fabric of American society from the mid 19th century onward.”

AAPI-owned businesses in 2021

AAPI-owned businesses nationwide were the most negatively impacted throughout the pandemic, demographically speaking, according to CNBC: The number of working AAPI business owners fell by 20 percent last year. Among the most affected areas was San Francisco’s Chinatown, which saw 75 percent of its storefronts become nonoperational at some point last year.

But what is an AAPI-owned business in the first place? The U.S. Small Business Administration (SBA) told us that it doesn’t specifically define what constitutes an AAPI-owned business. The U.S. Census Bureau does, however: having persons of Asian or Native Hawaiian and Pacific Islander origin owning 51 percent or more of the business — akin to its definitions of Black-owned businesses and women-owned businesses. This definition covers East Asia (like China, Japan and more), Southeast Asia (including the Philippines, Vietnam and more) and the Indian subcontinent (Pakistan, Bangladesh and more) — the three comprise more than 19 countries and 20 million citizens in the U.S. can trace their origins to here — as well as the Polynesia, Micronesia and Melanesia subregions, which include Native Hawaiian, Samoan, Fijian and Tahitian people, among others.

Despite these definitions, or lack thereof, the two agencies do provide some noteworthy insights. Based on the most recent data released by the Census Bureau, here’s what we know:

  • In 2012, there were roughly 2 million AAPI-owned businesses in the U.S. (2016 data)
  • In 2018, there were more than 577,000 Asian-owned and over 6,600 Pacific Islander-owned employer businesses in the U.S. (2021 data)

Sarah Paiji Yoo, co-founder and CEO of eco-friendly cleaning brand Blueland, said she’s “incredibly proud” to be an Asian American running a business but is often subject to racism, especially on social media — people comment assumptions regarding where Blueland manufactures its products, for example. Then there’s the “model minority myth,” a harmful argument that typically praises Asian Americans for economic, academic and cultural success based entirely on stereotypes. It’s yet another challenge for Lin Chen, founder and CEO of wellness brand Pink Moon. “People continue to generalize, stereotype and be selective in who they want to listen to, invest in [and] purchase from,” she told us.

In our guide to women-owned brands, owner and founder of Hero Cosmetics Ju Rhyu told us that running a business is accompanied by “a lot of responsibility” to support her community, “especially as a business owner, since there is privilege and influence in being in this position.” That privilege comes at a time when 44 percent of unemployed Asian American women have been out of work for at least six months. This year, over 1,000 AAPI executives like DoorDash founder Tony Xu and Zoom CEO Eric Yuan donated $10 million to groups supporting the AAPI community, including nonprofit Asian Pacific Fund and the Asian-Americans Advancing Justice, a legal advocacy group for hate crime victims. Other business leaders pledged $125 million to launch the Asian American Foundation, which will support AAPI organizations and causes over the next five years — the largest philanthropic commitment in history fully focused on the AAPI community. The foundation raised another $125 million from organizations like Walmart, Bank of America and the Ford Foundation.

While noteworthy efforts, the AAPI community receives less than 1 percent of philanthropic funds despite making up 7 percent of the population and the country’s fastest growing racial group, according to the Pew Research Center.

Being a South Asian founder, Silk + Sonder’s Meha Agrawal said “it often feels like all the odds are stacked up against us: We have to work harder [and] prove ourselves every step of the way.” But throughout her career, she’s learned that “the most important thing a female founder or woman of color can do is make sure that people in seats of privilege are brought along on our journey” to have transparent conversations while building a business.

Each Fall and Spring, AAPI nonprofit Gold House hosts the Gold Rush cohort of Founders — Sahra Nguyen participated last year — wherein founders attend weekly master classes and panels led by advisors, expose their brands to potential investors and influencers, and join a network of founders that meet regularly to share insights and build partnerships. ACE National also provides guidance for starting and maintaining a business, including how to navigate the Covid-19 pandemic, loans, government programs and health and wellness matters.

Business owners said messaging and connecting with other founders on social media, from Twitter to LinkedIn, helped them network. Founders “will be extremely helpful and crucial as you build [your business] and oftentimes they’ll be the only ones who can empathize and understand what you are going through in successes and failures,” noted Rhyu.

Pink Moon’s Lin Chen said she’s part of multiple networking groups on Facebook for Asian creatives and entrepreneurs, including Asian Hustle Network and Asian Creative Network.

Notable AAPI-owned products in 2021

Here are 14 items from AAPI-owned brands that stood out to us, from travel essentials and skincare products to eco-friendly tools and home goods. Since there is no central directory of AAPI-owned businesses, as defined by the Census Bureau’s 51-percent edict, we asked each business below to confirm that it meets the criteria: having persons of Asian or Native Hawaiian and Pacific Islander origin owning 51 percent or more of the business.

Pink Moon allows users to filter wellness and skincare products they see by skin type, age and goals.

One of their bestsellers includes this rose quartz gua sha that stimulates lymphatic drainage to reduce puffiness and increase elasticity in the skin, according to the brand. In including this product in their line, Chen initially wanted to celebrate Traditional Chinese Medicine and her heritage, “I want to contribute to the diverse voices in this industry and push for more inclusivity and positive change,” she said. For maximum results, the brand suggests users of the gua sha pair it with the Over the Moon Gua Sha Facial Oil, which is made from a sunflower-moringa oil blend that soothes skin inflammation.

Amy Liu originally started the company to deal with her own eczema and now Tower 28 is the “first and only makeup brand to 100-percent follow the National Eczema Association’s ingredient guidelines and avoid every known skin irritant and allergen for all skin sensitivities,” she shared. This AAPI month, Liu wants consumers to realize AAPI heritage “is about recognizing the incredible people in our community who are pushing the boundaries and speaking up about racism and the need for more Asian representation.”

Made with apricot and raspberry seed oil, this lip gloss is one of the most popular products. Designed to hydrate your lips without drying them out, according to the brand, the gloss comes in four shades: Coconut, Cashew, Oat and Almond.

Frustrated with the fit of his dress shirts, Taiwanese-American Wesley Kang founded Nimble Made “to bring more representation and inclusion in sizing standards, starting with a slim fit that actually fits,” he elaborated.

Made from 100-percent cotton, the brand’s machine-washable dress shirts feature 2-button adjustable rounded cuffs and a Franklin semi-spread collar.

Terrence Santos founded his company in 2015 when he was expecting his first child. Originally, he started looking for toys that would teach the Filipino language to his child, but found nothing — so he created a toy company that provided options. Now his company sells toys that teach Tagalog, Ilocano, Bisaya and Hawaiian. On each of the ten blocks, the company has engraved the Roman number, Tagalog translation, Mahjong character and an English translation.

Eunice Byun and Dave Nguyen are challenging the notion that we need dozens of gadgets to cook delicious meals. A few years ago, the ex Chanel and Revlon executives founded Material Kitchen, a direct-to-consumer company that offers a simplified kitchen starter set at an affordable price. This seven-piece set, which has a 5.0-star average rating from almost 100 consumers, features an 8” knife, 4” knife, tongs, wooden spoon, metal spoon, slotted spatula and wooden holder. What’s more is you can customize the set’s wood type and handle color.

Private Policy is a “genderless” clothing company founded by Haoran Li and Siying Qu, two former Parsons graduates. Inspired by the youth culture in New York City, the pair design clothes without the traditional menswear and womenswear labels. Made from 100-percent Rayon, this jacket can be worn with the sleeves on or off, serving multiple purposes. You can also shop their collection at Selfridges.

Nearly two decades ago, Taiwanese American Melinda Hwang’s father worked with a scientist (and family friend) to come up with a nanofiber membrane mask during the 2003 SARs epidemic. When the Covid-19 pandemic hit the U.S., Hwang’s family sent her those masks from Taiwan and, thus, Happy Masks was born.

The brand’s Pro Series offers a range of sizes — with the small size fitting ages three to 10 — and can withstand at least 50 washes by hand. It has adjustable ear straps and a nose wire to fit different face shapes, while its “parrot beak” design leaves enough room between the mask and the mouth and nose in order to breathe comfortably for long-term wear.

Nguyen Coffee Supply imports Vietnamese coffee beans from its partner farms in Vietnam and roasts them fresh weekly in Brooklyn. The Original Vietnamese Coffee Trio features three different coffee blends: Moxy, Truegrit and Loyalty Arabica-Robusta. The coffee comes finely ground, and you can brew it using the brand’s Phin Filter.

CEO and founder Sahra Nguyen said AAPI month is an important time for the community to share their stories. “Many people don’t understand our community because we’ve been erased and ignored for so long,” Nguyen said. “Taking the time to learn about our community’s unique experiences will deepen our connection and sense of shared humanity. From here, we can effectively work together to build a better world.”

CEO Jan Lo said the brand was inspired by his mom’s need for a lightweight, stylish and functional carry-on bag to take with her while traveling. While designing the brand’s first bag — The O.G. — Lo said he “quickly found that it wasn’t just my mother in need of a travel bag that didn’t sacrifice style for functionality.” Lo & Sons, which was co-founded by Lo, his mother and his brother, sells a variety of bags for men and women, including The Catalina Deluxe, which is featured in our roundup of the best weekender bags. The company sells apparel and face masks, too.

Edward and Judy Kwon founded the family-owned CALPAK in 1989 with the mission of making quality bags at an accessible price. Their daughter Jennifer Kwon has run the company since 2013. CALPAK’s bags range in size, style and color from the Kaya Laptop Backpack to the Hue Duffel Bag, which was also featured in our roundup of the best weekender bags. Beyond bags, luggage and organizers, CALPACK also sells men’s and women’s apparel, as well as wellness items like face masks, hand sanitizer and linen and room spray.

After five years of running gr8nola as a side hustle, founder Erica Liu Williams left her 10 year tech career to pursue the brand full time. gr8nola sells granola that’s free from refined sugar, dairy, soy and GMOs in a variety of flavors, from Peanut Butter and Matcha to Cacao and Cinnamon Chai. Williams said she feels it’s her responsibility to use her platform to share her perspective and the voices of others in the AAPI community. “I feel socially responsible to myself, family and broader community to be a role model for others by leading by example and showing other young girls and people who look like me that you can achieve success on your own terms, without succumbing to becoming a “model minority” stereotype,” Williams said.

Silk + Sonder is a subscription service that sends members guided monthly journals with prompts inspired by positive psychology, as well as gives them access to virtual programming for peer-to-peer support. “Silk + Sonder’s mission is to solve the emotional health epidemic for customers versus being a band-aid fix,” said Meha Agrawal, the company’s founder. “At its core, Silk + Sonder is a space for mindfulness, journaling, planning, tracking and creative expression all in one.”

When Sarah Paiji Yoo, Blueland’s CEO, decided to reduce her personal plastic consumption, she quickly realized how difficult it was to do. “Many household items use single-use plastic in their packaging,” said Yoo. “This ultimately is what led me to found Blueland, as no one should have to sacrifice a clean home and clean clothes for a clean planet.” Blueland sells refillable cleaning products like Glass + Mirror, Multi-Surface and Bathroom sprays — included in The Clean Up Kit — all of which are certified by the EPA’s Safer Choice program, as we previously reported in our guide to eco-friendly cleaning supplies.

Stephanie Hon launched Cadence with the mission to eliminate single-use travel-sized plastic in February of last year — a month before the Covid-19 pandemic hit the U.S. “We definitely put a pause on talking about air-travel, going to the gym before work, date nights, etcetera,” said Hon. But despite launching in the midst of the pandemic, the brand’s sustainable capsules repeatedly sold out. Cadence specializes in magnetic and refillable containers made from recycled ocean bound plastic that snap together and can keep your small travel essentials and daily items organized. You can buy the capsules individually or get them a bundle of six, and they come in a variety of colors including Lavender and Terracotta. Hon said one of her biggest challenges as an AAPI business owner was being “bullish” and retraining her inclinations. “To say I think we’re going to be a $XM company, to say it’s a great opportunity for people to be involved. There’s a perfect balance of humility and confidence that comes to light,” she said.

109 AAPI-owned brands to support in 2021

In addition to our favorite products from AAPI-owned brands, we’ve rounded up some businesses across various Shopping reader interests, including home, food, beauty and wellness. We asked each business below to confirm it meets the Census Bureau’s criteria of at least 51 percent AAPI ownership. While this list of AAPI-owned companies and products isn’t exhaustive, we aim to actively update this feature to help keep you informed about AAPI-owned companies worth considering.

AAPI-owned home and kitchen brands

Revamp your kitchen decor with a new apron or oven mitts from The Homebodies or treat yourself or your favorite friend to a new indoor plant from Bark & Vine.

  1. Aerangis
  2. Anak Toy Kompany
  3. Bark & Vine
  4. Blueland
  5. The Homebodies
  6. ILHA Candles
  7. KonMari
  8. Material Kitchen
  9. O-M Ceramics
  10. Pawena Studio
  11. Rooted
  12. Soothi
  13. Trail575
  14. Woo Ceramics

AAPI-owned beauty and skincare brands

Update your skincare regime by shopping for a Gua Sha facial tool from Mount Lai or combat maskne with Soko Glam’s Pimple Patch. You can also shop from dozens of AAPI-owned makeup brands, fragrance shops like Ellis Brooklyn or nail care brands like Sundays.

  1. Acaderma
  2. Asutra
  3. AVYA Skincare
  4. Bluelene
  5. Blume
  6. Cle Cosmetics
  7. Caire Beauty
  8. Circumference
  9. Ellis Brooklyn
  10. EM Cosmetics
  11. Essance Skincare
  12. Glow Recipe
  13. Happy 2nd Birthday
  14. Hero Cosmetics
  15. Krave Beauty
  16. LAPCOS
  17. Mount Lai
  18. Peach & Lily
  19. Pink Moon
  20. Soko Glam
  21. Sundays
  22. Supernal
  23. Tower 28 Beauty
  24. YINA

AAPI-owned food and beverages brands

These 17 standout food and beverage options are worth a try, especially if you’re looking to try out some spiced ice cream or a side of kimchi.

  1. Brightland
  2. ChocoVivo
  3. Fly By Jing
  4. Gr8nola
  5. Indifix
  6. Kasama
  7. Lunar
  8. Malai Ice Cream
  9. Mother-in-Law’s
  10. Nguyen Coffee Supply
  11. Omsom
  12. One Stripe Chai
  13. The Qi
  14. Red Boat Fish Sauce
  15. Sanzo
  16. Spicewalla
  17. Umamicart
  18. Wing on Wo & Co.

AAPI-owned bookstores

Looking to expand your at-home library but don’t know where to start? These AAPI-owned bookstores from across the country have a wide variety of options, from used to brand new.

  1. A Good Used Book
  2. Arkipelago Books
  3. Bel Canto Books
  4. Eastwind Books
  5. Femme Fire Books
  6. Maomi Bookstore
  7. Orphan Books
  8. Philippine Expressions Bookshop
  9. Townie Books

AAPI-owned fashion and accessories brands

These 26 fashion and accessory brands can help you update your wardrobe going into the summer. They include everything from on-trend chunky rings at BONBONWHIMS to Gentle Monster’s chic sunglasses.

  1. Abacaxi
  2. Bellemere NY
  3. BONBONWHIMS
  4. Chunks
  5. Gentle Monster
  6. Haerfest
  7. Hey Maeve
  8. Jason Wu
  9. JW Pei
  10. Kahili Creations
  11. KERISMA
  12. Kinn
  13. LEYT
  14. MOMMA
  15. Nimble Made
  16. NOTTE Jewelry
  17. Paper Project
  18. Pepper
  19. PH5
  20. Private Policy
  21. Proclaim
  22. Rastah
  23. Rue Saint Paul
  24. Sonia Hou Jewelry
  25. SVNR
  26. Verlas

AAPI-owned wellness and fitness brands

You can shop for face masks at Airpop and Happy Masks, get a good night’s sleep with Pluto Pillow or enhance your workout routine with Blogilates.

  1. Airpop
  2. Apothékary
  3. Asutra
  4. AVRE
  5. Blogilates
  6. CocoFloss
  7. Happy Masks
  8. L’Oeuf Poche
  9. Mono B
  10. Neuro
  11. Pluto Pillow
  12. Silk + Sonder

AAPI-owned travel brands

If you’re planning a few summer trips, you can get your hands on multiple AAPI-owned travel essentials, including a travel backpack from Brevitē or a versatile carry-on bag from Planeket.

  1. Brevitē
  2. Cadence
  3. Calpak
  4. Lo and Sons
  5. Planeket
  6. Senreve

Catch up on the latest from NBC News Shopping guides and recommendations and download the NBC News app for full coverage of the coronavirus outbreak.

Continue Reading

Trending