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Actionable news in AMGN: Amgen Inc.,

One Amgen Center Drive

The following excerpt is from the company's SEC filing.

Thousand Oaks, CA 91320-1799

Telephone 805-447-1000

www.amgen.com

AMGENS THIRD QUARTER 2015 REVENUES INCREASED

14 PERCENT TO $5.7 BILLION AND ADJUSTED EARNINGS PER

SHARE (EPS) INCREASED 18 PERCENT TO $2.72

Third Quarter 2015 GAAP EPS Increased 52 Percent to $2.44

2015 Total Revenues and Adjusted EPS Guidance

Increased to $21.4-$21.6 Billion and $9.95-$10.10, Respectively

Preliminary 2016 Total Revenues and Adjusted EPS Guidance

of $21.7-$22.3 Billion and $10.35-$10.75, Respectively

THOUSAND OAKS, Calif. (Oct. 28, 2015) Amgen (NA SDAQ:AMGN) today announced financial results for the third quarter of 2015. Key results include:

Total revenues increased 14 percent versus the third quarter of 2014 to $5,723 million, with 14 percent product sales growth driven primarily by Enbrel

(etanercept), Sensipar

(cinacalcet), Neulasta

(pegfilgrastim), Prolia

(denosumab), XGEVA

(denosumab) and Kyprolis

(carfilzomib). Unfavorable changes in foreign exchange rates impacted total revenue and product sales growth by 2 percentage points.

Adjusted EPS grew 18 percent versus the third quarter of 2014 to $2.72 driven by higher revenues and higher operating margins. Adjusted operating income increased 19 percent to $2,686 million and adjusted operating margin improved by 2 percentage points to 49 percent.

GAAP EPS were $2.44 compared to $1.61 and GAAP operating income was $2,339 million compared to $1,466 million. The prior year was negatively impacted by charges for the restructuring plan announced in the third quarter of 2014.

The Company generated $2.7 billion of free cash flow compared to $2.6 billion in the third quarter of 2014.

We delivered record revenues, adjusted earnings and cash flow in the third quarter, while

improving our operating margins and investing in six exciting new product launches, said Robert A.

Bradway, chairman and chief executive officer. With several innovative medicines still in

development, we are well on the way to achieving our long-term objectives for shareholders and

patients alike.

Year-over-Year

$Millions, except EPS and percentages

Q3 15

Q3 14

5,723

Adjusted Operating Income

Adjusted Net Income

GAAP Operating Income

GAAP Net Income

References in this release to adjusted measures, measures presented on an adjusted basis or to free cash flow refer to non-GAAP financial measures. These adjustments and other items are presented on the attached reconciliations.

Percent to $

and Adjusted Earnings Per Share

Increased 18 Percent to $2.72

Page 2

Third Quarter 2015 Product Sales Performance

Total product

increased 14 percent for the third quarter of 2015 versus the third quarter of 2014. The increase was driven primarily by ENBREL, Sensipar, Neulasta, Prolia, XGEVA and Kyprolis. Growth for the quarter was due to net selling price, low inventory levels in the prior year period and higher unit demand.

ENBREL

sales increased 30 percent year-over-year driven by net selling price and low inventory levels in the prior year period, offset partially by the impact of competition.

sales increased 6 percent year-over-year driven by net selling price and favorable changes in inventory levels.

Aranesp

(darbepoetin alfa)

sales increased 4 percent year-over-year driven by higher unit demand, including a shift in dialysis customer purchases from EPOGEN

(epoetin alfa), offset partially by net selling price and unfavorable changes in foreign exchange rates.

sales decreased 6 percent year-over-year driven by the impact of competition and the shift to Aranesp, offset partially by favorable changes in inventory levels and net selling price.

sales increased 19 percent year-over-year driven primarily by higher unit demand.

Sensipar/Mimpara

sales increased 29 percent year-over-year driven by low inventory levels in the prior year period, net selling price and higher unit demand.

Prolia

sales increased 25 percent year-over-year driven by higher unit demand.

NEUPOGEN

(filgrastim) sales decreased 5 percent year-over-year driven primarily by the impact of competition in the United States (U.S.).

Kyprolis

sales increased 46 percent year-over-year driven by higher unit demand.

Nplate

(romiplostim) sales increased 15 percent year-over-year driven by higher unit demand.

Vectibix

(panitumumab) sales decreased 4 percent year-over-year driven by unfavorable changes in foreign exchange rates. Strong unit growth continued in the U.S. and Europe.

Page 3

Product Sales Detail by Product and Geographic Region

$Millions, except percentages

Q3 15

Q3 14

YOY

$1,392

$1,459

$1,120

/ Mimpara

Other*

Total product sales

$4,425

$1,091

$5,516

$4,848

Other includes MN Pharma, BLINCYTO

, Bergamo, Repatha

, Corlanor

Page 4

Third Quarter Operating Expense, Operating Margin and Tax Rate Analysis, on an Adjusted Basis

Operating Expenses

increased 10 percent. Operating expense growth was reduced by 3 percentage points due to changes in foreign exchange rates.

Cost of Sales

margin improved 2.2 points driven by net selling prices, lower royalty expense and manufacturing efficiencies.

Research & Development (R&D)

expenses increased 11 percent driven by upfront payments related to the Companys recent deal activity and increased support for launch products, offset partially by savings from transformation and process improvement efforts.

Selling, General & Administrative

expenses increased 17 percent driven primarily by investments in new product launches and ENBREL-related payments, offset partially by savings from transformation and process improvement efforts.

increased 0.9 percentage points to 18.0 percent primarily due to changes in the geographic mix of earnings.

On an Adjusted Basis

Q3 15

Cost of Sales*

% of sales

(2.2) pts.

$1,086

(0.5) pts.

$1,206

$1,027

0.7 pts.

TOTAL Operating Expenses

$3,037

$2,768

operating income as a % of sales

2 pts.

Tax Rate*

0.9 pts.

pts: percentage points

* Impact of Puerto Rico excise tax is included in Cost of Sales and Tax Rate. Excluding Puerto Rico excise tax, Cost of Sales would be 1.7 pts. and 1.8 pts. lower for 2015 and 2014, respectively; and the Tax Rate would be 2.9 pts. higher for both 2015 and 2014.

Page 5

Cash Flow and Balance Sheet Discussion

The Company generated $2.7 billion of free cash flow in the third quarter of 2015 versus $2.6 billion in the third quarter of 2014.

The Companys fourth quarter 2015 dividend of $0.79 per share declared on Oct. 14, 2015, will be paid on Dec. 7, 2015, to all stockholders of record as of the close of business on Nov. 16, 2015.

During the third quarter, the Company repurchased 4.6 million shares of common stock at a total cost of $0.7 billion.

$Billions, except shares

Operating Cash Flow

Capital Expenditures

Free Cash Flow

Dividends Paid

Share Repurchase

Avg. Diluted Shares (millions)

Cash and Investments

Debt Outstanding

Stockholders Equity

Note:Numbers may not add due to rounding

2015 Guidance

For the full year 2015, the Company now expects:

in the range of $21.4 billion to $21.6 billion and

adjusted EPS

in the range of $9.95 to $10.10. Previously, the Company expected total revenues in the range of $21.1 billion to $21.4 billion and adjusted EPS in the range of $9.55 to $9.80.

Adjusted tax rate

to be in the range of 18 percent to 19 percent. This excludes the benefit of the federal R&D tax credit, which has not yet been extended for 2015.

Capital expenditures

to be approximately $700 million.

Percent to $

Page 6

2016 Preliminary Guidance

For the full year 2016, the Company expects:

in the range of $21.7 billion to $22.3 billion and

in the range of $10.35 to $10.75.

to be in the range of 20.5 percent to 21.5 percent, excluding the federal R&D tax credit.

planned

to be increased 27 percent to $1.00 per share in the first quarter of 2016.

Share repurchases

of $2 billion to $3 billion in 2016.

In October 2015, the Companys Board of Directors approved an increase in the remaining share repurchase authorization for an aggregate...


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