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Conference
David Meline
Executive Vice President and Chief Financial Officer
November 10, 2015
Status
On track
*Adjusted, non-GAAP financial measureif this slide is in hard copy, see reconciliations accompanying the presentation, or if this slide is delivered electronically,
or amounts pertain to previously issued financial guidance, see reconciliations available at: www.amgen.com within the Investors section
Guidance as of October 28, 2015, and is not being updated at this time.
Provided November 10, 2015, as part of an oral presentation and is qualified
by such, contains forward-looking statements, actual results may vary
materially; Amgen disclaims any duty to update.
YTD Sep. 30 15
$3.9
1.0
1.0
0.9
0.4
0.4
0.4
3.6
1.5
1.5
0.8
0.2
$15.6
XGEVA
Sensipar/Mimpara
Prolia
Vectibix
Nplate
Kyprolis
Neulasta
EPOGEN
Aranesp
NEUPOGEN
Other*
Total Product Sales
*Other includes MN Pharma, BLINCYTO, Bergamo, Corlanor and Repatha
Provided November 10, 2015, as part of an oral presentation and is qualified
by such, contains forward-looking statements, actual results may vary
materially; Amgen disclaims any duty to update.
YoY
17%
17%
23%
30%
11%
11%
52%
4%
1%
0%
(11%)
10%
Next Steps
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12
Originator Worldwide
2014 Sales*
ABP 501
HUMIRA ~ $13B
ABP 980
Herceptin ~ $7B
ABP 215
Avastin ~ $7B
ABP 710
Phase 1
REMICADE ~ $9B
ABP 798
Clinical ready
RITUXAN ~ $8B
ABP 494
Process development
ERBITUX ~ $2B
Molecules #7#9
Process development
~ $7B
Total
~ $52B
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Indication
Milestone
Etelcalcetide
Secondary hyperparathyroidism
Omecamtiv mecarbil*
Heart failure
Phase 2 complete
Romosozumab
Postmenopausal osteoporosis
AMG 334
Migraine prophylaxis
Advanced NSCLC
Inflammatory diseases
Breast cancer
*Developed in collaboration with Cytokinetics; Developed in world-wide collaboration with UCB and Astellas in Japan; Developed in collaboration with Novartis
Provided November 10, 2015, as part of an oral presentation and is qualified
by such, contains forward-looking statements, actual results may vary
materially; Amgen disclaims any duty to update.
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CAR-T immuno-oncology
collaboration
Phase 1
Expands on existing
bispecific antibody platform
and expertise in multiple
myeloma (CD-38)
Expands cardiovascular
franchise with potentially
best-in-class CETP inhibitor
Phase 3
Phase 2
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Previous
Guidance
$21.4B$21.6B
$21.1B$21.4B
$9.95$10.10
$9.55$9.80
18%19%
18%19%
Capital Expenditures
~ $700M
~ $700M
Revenue
Adjusted EPS*
*Adjusted, non-GAAP financial measureif this slide is in hard copy, see reconciliations accompanying the presentation, or if this slide is delivered electronically,
or amounts pertain to previously issued financial guidance, see reconciliations available at: www.amgen.com within the Investors section
Guidance as of October 28, 2015, and is not being updated at this time.
Provided November 10, 2015, as part of an oral presentation and is qualified
by such, contains forward-looking statements, actual results may vary
materially; Amgen disclaims any duty to update.
16
$21.7B$22.3B
Adjusted EPS*
$10.35$10.75
20.5%21.5%
Capital Expenditures
~ $700M
Dividend Growth
27%
Share Repurchases
~ $2B$3B
*Adjusted, non-GAAP financial measureif this slide is in hard copy, see reconciliations accompanying the presentation, or if this slide is delivered electronically,
or amounts pertain to previously issued financial guidance, see reconciliations available at: www.amgen.com within the Investors section
Guidance as of October 28, 2015, and is not being updated at this time.
Provided November 10, 2015, as part of an oral presentation and is qualified
by such, contains forward-looking statements, actual results may vary
materially; Amgen disclaims any duty to update.
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Reconciliations
Amgen Inc.
Reconciliations of GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share
($ In millions)
(Unaudited)
(a)
Year ended
December 31, 2014
6.70
6.70
5.02
0.86
0.16
0.08
(0.02)
7.78
1.30
0.52
0.17
0.04
(0.03)
8.70
0.98
0.37
0.19
(0.02)
6.54
Year ended
December 31, 2013
$
6.64
0.91
0.06
0.02
0.01
(0.04)
7.60
The above adjustments are presented net of their related per-share tax impact of $0.53 and $0.69 for the nine months ended September 30, 2015 and 2014, respectively, and $0.93 and $0.49 for
the years ended December 31, 2014 and 2013, respectively.
(b) To exclude acquisition-related expenses related primarily to non-cash amortization of intangible assets, including developed product technology rights, acquired in business combinations. The
2014 periods also included a $99-million charge related to the termination of a supply contract with F. Hoffmann-La Roche Ltd. as a result of acquiring the licenses to filgrastim and pegfilgrastim
effective January 1, 2014.
(c)
To exclude expenses related primarily to severance, as well as accelerated depreciation and other charges related to the closure of our facilities.
(d) To exclude the expense related to the Internal Revenue Service issuing final regulations that required us to recognize an additional year of the non-tax deductible branded prescription drug fee.
(e)
The adjustments related to certain prior period items excluded from adjusted earnings. The 2015 adjustments also included the impact from a change in interpretation of tax law. The 2013
adjsutments also included the impact of resolving certain non-routine transfer-pricing and acquisition-related issues with tax authorities
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Amgen Inc.
Reconciliations of GAAP Operating Income and Margin to Adjusted Operating Income and Margin
($ In millions)
(Unaudited)
Nine months ended
September 30, 2015
GAAP operating income
Adjustments to operating income:
Acquisition-related expenses (a)
Certain charges pursuant to our restructuring and other cost savings initiatives (b)
Expense related to various legal proceedings
Stock option expense
Total adjustments to operating income
Adjusted operating income
6,437
Product sales
GAAP operating margin
Impact of total adjustments to operating income
Adjusted operating margin
Year ended
December 31, 2013
$
5,867
1,010
166
73
1,249
7,686
986
71
14
34
1,105
6,972
15,615
18,192
41.2%
8.0%
49.2%
32.3%
6.0%
38.3%
(a)
The adjustments related primarily to non-cash amortization of intangible assets, including developed product technology rights, acquired in
business combinations.
(b)
The adjustments related primarily to severance, as well as accelerated depreciation and other charges related to the closure of our facilities.
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2015
GAAP diluted EPS guidance.......................................................................................... ..
8.47
0.19
9.95
2016
$
8.66
1.18
0.09
(0.02)
0.23
10.10
8.89
0.09
10.35
1.32
-
The known adjustments are presented net of their related tax impact which amount to approximately $0.66 to $0.69 per share in 2015 and 2016,
each in the aggregate.
(a)
The adjustments relate primarily to non-cash amortization of intangible assets acquired in prior year business combinations.
(b)
The adjustments relate to a change in interpretation of tax law and certain prior period items excluded from adjusted earnings.
9.34
0.14
10.75
2015
GAAP tax rate guidance.................................................................................................
Tax rate effect of known adjustments discussed above.............................................
Adjusted tax rate guidance ...........................................................................................
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14.0%
3.0%
18.0%
2016
16.0%
18.5%
4.0%
19.0%
19.5%
2.0%
20.5%
21.5%
Amgen Inc.
Reconciliation of Future GAAP to Adjusted Financial Measures
Management has presented herein certain forward-looking statements about the Companys future financial performance that include non-GAAP (or asadjusted) operating margin and earnings per share for various years through December 31, 2018. These nonGAAP financial measures are derived by
excluding certain amounts, expenses or income, from the corresponding financial measures determined in accordance with GAAP. The determination of the
amounts that are excluded from these non-GAAP financial measures are a matter of management judgment and depend upon, among other factors, the
nature of the underlying expense or income amounts recognized in a given period. We are unable to present a quantitative reconciliation of the
aforementioned forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measure because
management cannot reliably predict all of the necessary components of such GAAP measures. Historically, management has excluded the following items
from these non-GAAP financial measures, and such items may also be excluded in future periods and could be significant:
Expenses related to the acquisition of businesses, including amortization and / or impairment of acquired intangible assets, including in-process
research and development, adjustments to contingent consideration, integration costs, severance and retention costs and transaction costs;
Charges associated with restructuring or cost saving initiatives, including but not limited to asset impairments, accelerated depreciation,
severance costs and lease abandonment charges;
Legal settlements or awards;
The tax effect of the above items; and
Non-routine settlements with tax authorities.
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