Amgen's Third Quarter 2009 Adjusted Earnings Per Share Increased 21 Percent to $1.49
10.21.2009
|
Total revenue decreased 2 percent during the third quarter of 2009 to
"Our third quarter results reflect the continued stability of our core businesses in the face of increased competition," said
Adjusted EPS and adjusted net income for the third quarter of 2009 and 2008 exclude, for the applicable periods, stock option expense, certain expenses related to acquisitions, a strategic decision to change manufacturing processes and the resolution of certain non-routine transfer pricing issues with the
On a reported basis and calculated in accordance with
Product Sales Performance
During the third quarter of 2009, total product sales decreased 1 percent to
Worldwide sales of Aranesp(®) (darbepoetin alfa) decreased 19 percent to
Sales of EPOGEN(®) (Epoetin alfa) increased 5 percent to
Combined worldwide sales of Neulasta(®) (pegfilgrastim) and NEUPOGEN(®) (Filgrastim) increased 2 percent to
Sales of Enbrel(®) (etanercept) increased 3 percent in the third quarter of 2009 to
Worldwide sales of Sensipar(®) (cinacalcet) increased 2 percent to
Vectibix(®) (panitumumab) sales for the third quarter of 2009 were
Operating Expense Analysis on an Adjusted Basis:
Cost of sales decreased 8 percent to
Research & Development (R&D) expenses decreased 12 percent to
Selling, General & Administrative (SG&A) expenses increased 3 percent to
Excluding expenses associated with the Pfizer profit share of
The adjusted tax rate in the third quarter of 2009 was 12.9 percent compared to 22.7 percent in the third quarter of 2008. The decrease in the adjusted tax rate is primarily due to the favorable impact of settling
Average diluted shares for adjusted EPS in the third quarter of 2009 were 1,021 million versus 1,063 million in the third quarter of 2008.
Capital expenditures for the third quarter of 2009 were approximately
2009 Guidance Update
The Company reaffirmed that revenues for 2009 are trending towards the upper end of the current guidance range of
The Company still expects 2009 capital expenditures to be less than
Third Quarter Product and Pipeline Update
The Company provided updates on selected products and clinical programs.
Prolia: The Company reviewed the Complete Response Letter that the
The Company also announced that it has received a Complete Response Letter issued by the
The Company announced it expects that data from a study of the effect of denosumab on skeletal-related events in patients with bone metastases from prostate cancer will be available in the first quarter of 2010. The Company also announced that it will include results from all three of its skeletal-related events studies (breast, solid tumors or multiple myeloma, and prostate cancer) in its regulatory filings for marketing approval in the oncology setting next year.
Aranesp: The Company discussed the large, randomized, double-blind, placebo-controlled, Phase 3 study of patients with chronic kidney disease (CKD) (not requiring dialysis), anemia and type-2 diabetes (the Trial to Reduce Cardiovascular Endpoints with Aranesp(®) Therapy, or TREAT). Treatment of anemia with Aranesp to a hemoglobin target of 13 g/dL had no statistically significant effect on either of two primary endpoints compared with placebo treatment. The two primary endpoints were a composite of time to all-cause mortality or cardiovascular morbidity (including heart failure, heart attack, stroke, or hospitalization for myocardial ischemia) and a composite of time to all-cause mortality or chronic renal replacement therapy. Among the components of the TREAT outcomes measures, stroke, which has been noted in the Aranesp label since 2001, was more likely to occur in the patients who received Aranesp (101 patients [5.0 percent] vs. 53 patients [2.6 percent]; hazard ratio, 1.92; 95 percent CI, 1.38 to 2.68; P<0.001). Further, among patients with a history of cancer at baseline, there were 60 deaths from any cause in the 188 patients assigned to Aranesp and 37 deaths in the 160 patients assigned to placebo (P=0.13 by the log-rank test). In this subgroup, 14 of the 188 patients assigned to Aranesp died from cancer, as compared with 1 of the 160 patients assigned to placebo (P=0.002 by the log-rank test). Aranesp treatment was associated with a statistically significant reduction in blood transfusions. Additional data will be published soon and presented at the
Non-GAAP Financial Measures
Management has presented its operating results in accordance with GAAP and on an "adjusted" (or non-GAAP basis) for the three and nine months ended
Forward-Looking Statements
This news release contains forward-looking statements that involve significant risks and uncertainties, including those discussed below and others that can be found in our Form 10-K for the year ended
No forward-looking statement can be guaranteed and actual results may differ materially from those we project. The Company's results may be affected by our ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments (domestic or foreign) involving current and future products, sales growth of recently launched products, competition from other products (domestic or foreign) and difficulties or delays in manufacturing our products. In addition, sales of our products are affected by reimbursement policies imposed by third-party payors, including governments, private insurance plans and managed care providers and may be affected by regulatory, clinical and guideline developments and domestic and international trends toward managed care and health care cost containment as well as U.S. legislation affecting pharmaceutical pricing and reimbursement. Government and others' regulations and reimbursement policies may affect the development, usage and pricing of our products. Furthermore, our research, testing, pricing, marketing and other operations are subject to extensive regulation by domestic and foreign government regulatory authorities. We or others could identify safety, side effects or manufacturing problems with our products after they are on the market. Our business may be impacted by government investigations, litigation and product liability claims. Further, while we routinely obtain patents for our products and technology, the protection offered by our patents and patent applications may be challenged, invalidated or circumvented by our competitors. We depend on third parties for a significant portion of our manufacturing capacity for the supply of certain of our current and future products and limits on supply may constrain sales of certain of our current products and product candidate development. In addition, we compete with other companies with respect to some of our marketed products as well as for the discovery and development of new products. Discovery or identification of new product candidates cannot be guaranteed and movement from concept to product is uncertain; consequently, there can be no guarantee that any particular product candidate will be successful and become a commercial product. Further, some raw materials, medical devices and component parts for our products are supplied by sole third-party suppliers.
About
Amgen Inc.
Condensed Consolidated Statements of Income and
Reconciliation of GAAP Earnings to "Adjusted" Earnings
(In millions, except per share data)
(Unaudited)
Three Months Ended Three Months Ended
September 30, 2009 September 30, 2008
------------------ ---------------------
Adjust- Adjust-
GAAP ments "Adjusted" GAAP (a) ments "Adjusted"
---- ------- -------- -------- ------- --------
Revenues:
Product
sales $3,736 $- $3,736 $3,784 $- $3,784
Other
revenues 76 - 76 91 - 91
--- --- --- --- --- ---
Total
revenues 3,812 - 3,812 3,875 - 3,875
----- --- ----- ----- --- -----
Cost of sales
(excludes
amortization
of certain
acquired
intangible
assets
presented
below) 545 (3) (b) 542 677 (3) (b) 590
(84) (h)
Research and
development 647 (13) (b) 613 729 (12) (b) 700
(3) (c) (17) (d)
(18) (d)
Selling,
general
and
adminis-
trative 932 (13) (b) 913 900 (10) (b) 890
(6) (c)
Amortization
of certain
acquired
intangible
assets 74 (74) (e) - 74 (74) (e) -
Other
charges 9 (1) (c) - 12 (8) (c) -
(8) (f) (4) (f)
--- --- --- --- --- ---
Total
operating
expenses 2,207 (139) 2,068 2,392 (212) 2,180
----- ---- ----- ----- ---- -----
Operating
income 1,605 139 1,744 1,483 212 1,695
Interest
expense,
net 139 (63) (g) 76 133 (59) (g) 74
Interest
and
other
income,
net 74 74 62 9 (c) 71
--- --- --- --- ---
Income
before
income
taxes 1,540 202 1,742 1,412 280 1,692
Provision
for
income
taxes 154 80 (j) 224 291 93 (n) 384
(28) (k)
18 (m)
--- --- --- --- --- ---
Net
income $1,386 $132 $1,518 $1,121 $187 $1,308
====== ==== ====== ====== ==== ======
Earnings
per share:
Basic $1.36 $1.49 $1.06 $1.24
Diluted (o) $1.36 $1.49 (b) $1.05 $1.23 (b)
Average
shares
used in
calculation
of earnings
per share:
Basic 1,016 1,016 1,058 1,058
Diluted (o) 1,022 1,021 (b) 1,064 1,063 (b)
(a) - (o) See explanatory notes on the following pages, which includes
a discussion in note (a) of the retrospectively applied change
in method of accounting for our convertible notes.
Amgen Inc.
Condensed Consolidated Statements of Income and
Reconciliation of GAAP Earnings to "Adjusted" Earnings
(In millions, except per share data)
(Unaudited)
Nine months ended Nine months ended
September 30, 2009 September 30, 2008
------------------ ---------------------
Adjust- Adjust-
GAAP ments "Adjusted" GAAP (a) ments "Adjusted"
---- ------- -------- -------- ------- --------
Revenues:
Product
sales $10,608 $- $10,608 $11,013 $- $11,013
Other
revenues 225 - 225 239 - 239
--- --- --- --- --- ---
Total
revenues 10,833 - 10,833 11,252 - 11,252
------ --- ------ ------ --- ------
Cost of sales
(excludes
amortization
of certain
acquired
intangible
assets
presented
below) 1,553 (9) (b) 1,543 1,738 (9) (b) 1,644
(1) (c) (1) (c)
(84) (h)
Research
and
development 1,973 (40) (b) 1,875 2,232 (35) (b) 2,140
(6) (c) (3) (c)
(52) (d) (53) (d)
(1) (i)
Selling,
general
and
adminis-
trative 2,640 (39) (b) 2,578 2,678 (33) (b) 2,646
(23) (c) 1 (c)
Amortization
of certain
acquired
intangible
assets 221 (221) (e) - 221 (221) (e) -
Other
charges 63 (35) (c) - 306 (39) (c) -
(28) (f) (267) (f)
--- --- --- --- --- ---
Total
operating
expenses 6,450 (454) 5,996 7,175 (745) 6,430
----- ---- ----- ----- ---- -----
Operating
income 4,383 454 4,837 4,077 745 4,822
Interest
expense,
net 436 (186) (g) 250 419 (174) (g) 245
Interest
and
other
income,
net 182 182 264 9 (c) 273
--- --- --- --- ---
Income
before
income
taxes 4,129 640 4,769 3,922 928 4,850
Provision
for income
taxes 455 235 (j) 820 795 294 (n) 1,089
87 (k)
25 (l)
18 (m)
--- --- --- --- --- -----
Net
income $3,674 $275 $3,949 $3,127 $634 $3,761
====== ==== ====== ====== ==== ======
Earnings
per
share:
Basic $3.60 $3.87 $2.91 $3.50
Diluted (o) $3.58 $3.86 (b) $2.90 $3.49 (b)
Average
shares
used in
calculation
of earnings
per share:
Basic 1,020 1,020 1,075 1,075
Diluted (o) 1,025 1,024 (b) 1,079 1,078 (b)
(a) - (o) See explanatory notes on the following pages, which includes
a discussion in note (a) of the retrospectively applied
change in method of accounting for our convertible notes.
Amgen Inc.
Notes to Reconciliation of GAAP Earnings to "Adjusted" Earnings
(In millions, except per share data)
(Unaudited)
(a) Effective January 1, 2009, we adopted a new accounting standard
that changed the method of accounting for convertible debt that
may be partially or wholly settled in cash, which includes our
convertible notes. In addition, as required, we revised our
previously reported financial statements to retrospectively
apply this change in accounting to prior periods. Under this new
method of accounting, the debt and equity components of our
convertible notes are bifurcated and accounted for separately.
The equity components of our convertible notes are included in
Stockholders' equity in our Condensed Consolidated Balance Sheets
with a corresponding reduction in the carrying values of our
convertible notes as of the date of issuance or modification, as
applicable. The reduced carrying values of our convertible notes
are being accreted back to their principal amounts through the
recognition of non-cash interest expense. This results in
recognizing interest expense on these borrowings at effective
rates approximating what we would have incurred had we issued
nonconvertible debt with otherwise similar terms.
In connection with applying this new accounting to prior periods,
we recorded $59 million and $174 million of additional non-cash
interest expense in the three and nine months ended
September 30, 2008 , respectively. As a result, our previously
reported results of operations calculated in accordance with GAAP
have been revised for the three and nine months ended
September 30, 2008 , as follows:
Three months ended
September 30, 2008
------------------
Effect of the
new
As originally accounting
reported standard "Revised"
------------- ------------- ---------
Operating
income $1,483 $- $1,483
Interest
expense, net 74 59 133
Interest and
other income,
net 62 - 62
--- --- --
Income before
income taxes 1,471 (59) 1,412
Provision for
income taxes 313 (22) 291
--- --- ---
Net income $1,158 $(37) $1,121
====== ==== ======
Earnings per share:
Basic $1.09 $(0.03) $1.06
Diluted $1.09 $(0.04) $1.05
Nine months ended
September 30, 2008
------------------
Effect of the
new
As originally accounting
reported standard "Revised"
------------- ------------- ---------
Operating
income $4,077 $- $4,077
Interest
expense, net 245 174 419
Interest and
other income,
net 264 - 264
--- --- ---
Income before
income taxes 4,096 (174) 3,922
Provision for
income taxes 861 (66) 795
--- --- ---
Net income $3,235 $(108) $3,127
====== ===== ======
Earnings per share:
Basic $3.01 $(0.10) $2.91
Diluted $3.00 $(0.10) $2.90
(b) To exclude the impact of stock option expense. For the three and
nine months ended September 30, 2009 and 2008, the total pre-tax
expense for employee stock options was $29 million and $88 million ,
respectively, and $25 million and $77 million , respectively.
"Adjusted" diluted EPS including the impact of stock option expense
for the three and nine months ended September 30, 2009 and 2008 was
as follows:
Three months ended Nine months ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
"Adjusted" diluted EPS,
excluding stock option
expense $1.49 $1.23 $3.86 $3.49
Impact of stock option
expense (net of tax) (0.02) (0.02) (0.06) (0.05)
---- ---- ---- ----
"Adjusted" diluted EPS,
including stock option
expense $1.47 $1.21 $3.80 $3.44
===== ===== ===== =====
(c) To exclude the following (expenses)/recoveries associated with our
restructuring plan announced in August 2007 and certain additional
cost savings initiatives subsequently identified, as follows:
Separation Asset Other
costs (1) impairment (2) Total
------------- ---------- ------ -----
Three months ended
September 30, 2009
------------------------------
Research and
development (R&D) $- $(3) $- $(3)
Selling, general and
administrative (SG&A) - - (6) (6)
Other charges 3 - (4) (1)
--- --- --- ----
$3 $(3) $(10) $(10)
=== === ==== ====
Three months ended
September 30, 2008
------------------------------
Other charges $- $(1) $(7) $(8)
Interest and other income, net - - (9) (9)
--- --- --- ----
$- $(1) $(16) $(17)
=== === ==== ====
Nine months ended
September 30, 2009
------------------------------
Cost of sales (excludes
amortization of certain acquired
intangible assets) $- $(1) $- $(1)
R&D 3 (8) (1) (6)
SG&A 2 - (25) (23)
Other charges (31) - (4) (35)
--- --- --- ----
$(26) $(9) $(30) $(65)
=== === ==== ====
Nine months ended
September 30, 2008
------------------------------
Cost of sales (excludes
amortization of certain acquired
intangible assets) $- $(1) $- $(1)
R&D (3) - - (3)
SG&A - - 1 1
Other charges (4) (15) (20) (39)
Interest and other income, net - - (9) (9)
--- --- --- ----
$(7) $(16) $(28) $(51)
=== === ==== ====
(1) Severance and other separation costs partially offset in 2009
by the reversal of previously accrued expenses for bonuses and
stock-based compensation awards, which will be forfeited as a
result of the employees' termination.
(2) To exclude (i) from SG&A in 2009, integration costs associated
with certain cost saving initiatives, (ii) from Other charges
in 2009 and 2008, loss accruals for leases principally related
to certain facilities that will not be used in our business and
(iii) from Interest and other income, net in 2008, loss accrual
on the sale of certain less significant marketed products and
related assets.
(d) To exclude the ongoing, non-cash amortization of the R&D technology
intangible assets acquired with the acquisitions of Abgenix, Inc.
("Abgenix") and Avidia, Inc. ("Avidia").
(e) To exclude the ongoing, non-cash amortization of acquired product
technology rights, primarily ENBREL, related to the Immunex
Corporation ("Immunex") acquisition.
(f) To exclude loss accruals for settlements of certain commercial
legal proceedings.
(g) To exclude the incremental non-cash interest expense resulting
from our adoption of a new accounting standard for our convertible
notes (see (a) above).
(h) To exclude the write-off of inventory resulting from a strategic
decision to change manufacturing processes.
(i) To exclude merger related expenses incurred due to the Alantos
Pharmaceutical Holding, Inc. acquisition, primarily related to
incremental costs associated with retention.
(j) To reflect the tax effect of the above adjustments for 2009,
excluding certain of the loss accruals for settlements of commercial
legal proceedings (see (f) above).
(k) To exclude the income tax benefit (expense) recognized as the
result of resolving certain non-routine transfer pricing issues
with the Internal Revenue Service ("IRS") for prior periods.
(l) To exclude the net tax benefit resulting from adjustments to
previously established deferred taxes, primarily related to prior
acquisitions and stock option expense, due to changes in California
tax law effective for future periods.
(m) To exclude the tax benefit principally related to certain prior
period charges excluded from "Adjusted" earnings.
(n) To reflect the tax effect of the above adjustments for 2008,
excluding (i) certain of the restructuring charges (see (c) above),
(ii) certain of the loss accruals for settlements of commercial
legal proceedings (see (f) above) and (iii) certain components of
the write-off of inventory (see (h) above).
(o) The following table presents the computations for GAAP and
"Adjusted" diluted earnings per share, computed under the treasury
stock method. "Adjusted" earnings per share presented below
excludes stock option expense:
Three months ended Three months ended
September 30, 2009 September 30, 2008
------------------ ------------------
GAAP "Adjusted" GAAP "Adjusted"
---- ------------ ---- -----------
Income (Numerator):
Net income for basic
and diluted EPS $1,386 $1,518 $1,121 $1,308
====== ====== ====== ======
Shares (Denominator):
Weighted-average
shares for basic
EPS 1,016 1,016 1,058 1,058
Effect of
dilutive
securities 6 5 (*) 6 5 (*)
--- --- --- ---
Weighted-average
shares for diluted
EPS 1,022 1,021 1,064 1,063
===== ===== ===== =====
Diluted
earnings per
share $1.36 $1.49 $1.05 $1.23
===== ===== ===== =====
Nine months ended Nine months ended
September 30, 2009 September 30, 2008
------------------ ------------------
GAAP "Adjusted" GAAP "Adjusted"
---- ----------- ---- -----------
Income (Numerator):
Net income for basic
and diluted EPS $3,674 $3,949 $3,127 $3,761
====== ====== ====== ======
Shares (Denominator):
Weighted-average
shares for basic
EPS 1,020 1,020 1,075 1,075
Effect of
dilutive
securities 5 4 (*) 4 3 (*)
--- --- --- ---
Weighted-average
shares for diluted
EPS 1,025 1,024 1,079 1,078
===== ===== ===== =====
Diluted
earnings per
share $3.58 $3.86 $2.90 $3.49
===== ===== ===== =====
(*) Dilutive securities used to compute "Adjusted" diluted earnings
per share for the three and nine months ended September 30, 2009
and 2008 were computed under the treasury stock method assuming
that we do not expense stock options.
Amgen Inc.
Product Sales Detail by Product and Geographic Region
(In millions)
(Unaudited)
Three months Nine months
ended ended
September 30, September 30,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
Aranesp(R) - U.S. $333 $458 $963 $1,290
Aranesp(R) - International 352 387 1,041 1,141
EPOGEN(R) - U.S. 663 634 1,866 1,810
Neulasta(R) - U.S. 657 633 1,876 1,850
NEUPOGEN(R) - U.S. 240 223 672 667
Neulasta(R) - International 214 219 603 620
NEUPOGEN(R) - International 99 117 290 342
Enbrel(R) - U.S. 872 838 2,430 2,531
Enbrel(R) - International 52 55 151 154
Sensipar(R) - U.S. 108 111 320 306
Sensipar(R) - International 57 50 160 138
Vectibix(R) - U.S. 23 26 72 83
Vectibix(R) - International 35 15 95 24
Other product sales - U.S. 22 6 54 23
Other product sales - International 9 12 15 34
--- --- --- ---
Total product sales $3,736 $3,784 $10,608 $11,013
====== ====== ======= =======
U.S. $2,918 $2,929 $8,253 $8,560
International 818 855 2,355 2,453
--- --- ----- -----
Total product sales $3,736 $3,784 $10,608 $11,013
====== ====== ======= =======
Amgen Inc.
Condensed Consolidated Balance Sheets - GAAP
(In millions)
(Unaudited)
September 30, December 31,
2009 2008 (a)
---- --------
Assets
Current assets:
Cash, cash equivalents and
marketable securities $14,013 $9,552
Trade receivables, net 2,331 2,073
Inventories 2,155 2,075
Other current assets 1,475 1,521
----- -----
Total current assets 19,974 15,221
Property, plant and
equipment, net 5,743 5,879
Intangible assets, net 2,674 2,988
Goodwill 11,335 11,339
Other assets 1,214 1,000
----- -----
Total assets $40,940 $36,427
======= =======
Liabilities and
Stockholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities $3,903 $3,886
Current portion of other long-
term debt 1,000 1,000
----- -----
Total current liabilities 4,903 4,886
Convertible notes 4,447 4,257
Other long-term debt 6,089 4,095
Other non-current
liabilities 2,643 2,304
Stockholders' equity 22,858 20,885
------ ------
Total liabilities and
stockholders' equity $40,940 $36,427
======= =======
Shares outstanding 1,016 1,047
(a) As discussed in more detail above in the notes to the Reconciliation
of GAAP Earnings to "Adjusted" Earnings, effective January 1, 2009 ,
we adopted a new accounting standard, which changed the method of
accounting for our convertible notes. In addition, as required, we
revised our previously reported financial statements to
retrospectively apply this change in accounting to prior periods.
As a result, our previously reported Consolidated Balance Sheet as
of December 31, 2008 has been revised as follows:
December 31, 2008
-----------------
As originally Effect of the new
reported accounting standard "Revised"
------------- ------------------- ---------
Other non-current
assets $1,016 $(16) $1,000
Convertible notes 5,081 (824)(1) 4,257
Other non-current
liabilities 1,995 309 (2) 2,304
Stockholders' equity 20,386 499 (3) 20,885
(1) The reduction in Convertible notes reflects the bifurcation of
the equity components of our convertible notes partially offset
by the accretion of the reduced carrying values resulting from
the recognition of non-cash interest expense through
December 31, 2008 .
(2) The increase in Other non-current liabilities reflects the
impact of deferred income taxes.
(3) The increase in Stockholders' equity reflects the addition of
the equity components of our convertible notes, partially
offset by (i) non-cash interest expense recognized through
December 31, 2008 related to the accretion of the reduced
carrying values of our convertible notes and (ii) the impact
of deferred income taxes.
Amgen Inc.
Reconciliation of GAAP Debt Outstanding to "Adjusted" Debt
Outstanding
(In billions)
(Unaudited)
September 30, 2009
------------------
Adjustments for the
new accounting
GAAP standard "Adjusted"
---- ------------------- ----------
Total debt outstanding $11.5 $0.7 (a) $12.2
(a) To exclude the impact of the adoption of a new accounting standard
which changed the method of accounting for our convertible notes,
as discussed on the preceding pages.
Amgen Inc.
Reconciliation of GAAP Earnings Per Share
Guidance to "Adjusted" Earnings Per Share
Guidance for the Year Ending December 31, 2009
(Unaudited)
2009
----
GAAP earnings per share guidance $4.51 - $4.68
Known adjustments to arrive at "Adjusted" earnings:
Amortization of acquired intangible assets,
product technology rights (a) 0.18
Incremental non-cash interest expense (b) 0.15
Tax settlement (c) (0.08)
Stock option expense (d) 0.06 - 0.08
Cost savings initiatives (e) 0.04
Amortization of acquired intangible assets,
R&D technology rights (f) 0.04
Legal settlements (g) 0.02
California tax law change (h) (0.02)
Tax benefit for prior period charges (i) (0.02)
-----
"Adjusted" earnings per share guidance $4.90 - $5.05
===== =====
(a) To exclude the ongoing, non-cash amortization of acquired product
technology rights, primarily ENBREL, related to the Immunex
acquisition.
(b) To exclude the incremental non-cash interest expense resulting from
our adoption of a new accounting standard.
(c) To exclude the income tax benefit, net recognized as the result of
resolving certain non-routine transfer pricing issues with the IRS
for prior periods.
(d) To exclude stock option expense.
(e) To exclude expense related to cost saving initiatives.
(f) To exclude the ongoing, non-cash amortization of the R&D technology
intangible assets acquired with the Abgenix and Avidia acquisitions.
(g) To exclude loss accruals for settlements of certain commercial
legal proceedings.
(h) To exclude the net tax benefit resulting from adjustments to
previously established deferred taxes, primarily related to prior
acquisitions and stock option expense, due to changes in California
tax law effective for future periods.
(i) To exclude the tax benefit principally related to certain prior
period charges excluded from "Adjusted" earnings.
CONTACT: Amgen , Thousand Oaks David Polk , 805-447-4613 (media)
Arvind Sood , 805-447-1060 (investors)
(Logo: http://www.newscom.com/cgi-bin/prnh/20081015/AMGENLOGO)
SOURCE