Amgen's Second Quarter 2012 Revenues Increased 13 Percent To $4.5 Billion And Adjusted Earnings Per Share (EPS) Increased 34 Percent To $1.83

2012 Total Revenues and Adjusted EPS Guidance Ranges Increased to $16.9-$17.2 Billion and $6.20-$6.35

Second Quarter 2012 GAAP EPS Increased 29 Percent to $1.61

THOUSAND OAKS, Calif., July 26, 2012 /PRNewswire/ -- Amgen (NASDAQ:AMGN) today announced financial results for the second quarter of 2012.  Key results for the quarter include:

  • Total revenues increased 13 percent to $4,477 million, with 8 percent product sales growth driven by strong performance across the portfolio.
  • Amgen modified its agreement with Takeda to grant exclusive worldwide development rights for motesanib, recognizing income of $206 million in other revenues.
  • Adjusted EPS grew 34 percent to $1.83 due to 23 percent adjusted operating income growth and lower shares outstanding.  Adjusted net income increased 12 percent to $1,433 million.
  • GAAP EPS increased 29 percent to $1.61 and GAAP net income increased 8 percent to $1,266 million.
  • Amgen generated approximately $2.2 billion of free cash flow.
  • Four AMG 145 Phase 2 studies have successfully completed and the Company plans to initiate Phase 3 development in early 2013.

"I am very pleased with the performance of the business in the first half," said Bob Bradway, CEO at Amgen. "I am excited about the growth opportunities in our research and development pipeline, particularly our biologic AMG 145 for hypercholesterolemia."


 

 

Year-Over-Year (YOY)

$Millions, except EPS and percentages


 

Q2 '12


 

Q2 '11


 

YOY Δ


 

 

 

 

 

 

 

Total Revenue


 

$4,477


 

$3,959


 

13%

Adjusted Net Income


 

1,433


 

1,281


 

12%

Adjusted EPS


 

1.83


 

1.37


 

34%


 

 

 

 

 

 

 

GAAP Net Income


 

1,266


 

1,170


 

8%

GAAP EPS


 

$1.61


 

$1.25


 

29%

Adjusted EPS, adjusted operating income, adjusted net income, and free cash flow are non-GAAP financial measures.  These adjustments and other items are presented on the attached reconciliations.  

Product Sales Performance

 

  • Total product sales increased 8 percent driven by strong commercial execution across the portfolio.
  • Combined Neulasta ® (pegfilgrastim) and NEUPOGEN ® (Filgrastim) sales grew 2 percent driven mainly by an increase in the U.S. average net sales price.
    • Combined U.S. Neulasta and NEUPOGEN sales increased 6 percent driven by increases in the average net sales price and unit demand, offset partially by a decrease in wholesaler inventories.
    • Combined Neulasta and NEUPOGEN sales in the rest of the world (ROW) declined 13 percent due to a decrease in NEUPOGEN unit demand from loss of share to biosimilars and a decrease in the average net sales price of Neulasta and NEUPOGEN.
  • Enbrel® (etanercept) sales increased 11 percent driven primarily by an increase in the average net sales price, as well as increases in unit demand and wholesaler inventories.
  • Aranesp ® (darbepoetin alfa) sales decreased 8 percent driven primarily by a decline in unit demand. 
    • U.S. sales decreased 11 percent driven primarily by a decline in unit demand, offset partially by a change in accounting estimates and an increase in the average net sales price.
    • ROW sales decreased 7 percent driven primarily by a decrease in the average net sales price.
  • EPOGEN ® (epoetin alfa) sales decreased 3 percent driven by a reduction in dose utilization, offset largely by reductions in customer discounts and a change in accounting estimates.
    • On a sequential basis, EPOGEN sales increased 18 percent driven by customer and wholesaler buying patterns.  There was a low single-digit percentage point growth in underlying unit demand.
  • Growth-phase products: Sensipar®/Mimpara® (cinacalcet), Vectibix® (panitumumab), and Nplate® (romiplostim) increased 15 percent driven by higher unit demand.
  • Momentum for both XGEVA® (denosumab) and Prolia® (denosumab) continued in the second quarter with solid sequential growth.
    • XGEVA sales increased 17 percent on a sequential basis, reflecting increased segment share as well as growth in the overall skeletal-related events segment.
    • Prolia sales increased 36 percent on a sequential basis, reflecting continued unit growth globally.

Product Sales Detail by Product and Geographic Region

 

 

 

 

 

 

 

 

 

$Millions, except percentages


 

Q2 '12


 

Q2 '11


 

YOY Δ


 

 

US

ROW

TOTAL


 

TOTAL


 

TOTAL


 

 

 

 

 

 

 

 

 

Neulasta®/ NEUPOGEN®


 

$1,062

$285

$1,347


 

$1,326


 

2%

Neulasta®


 

794

221

1,015


 

1,015


 

0%

NEUPOGEN®


 

268

64

332


 

311


 

7%

Enbrel®


 

991

67

1,058


 

956


 

11%

Aranesp®


 

215

321

536


 

585


 

(8%)

EPOGEN®


 

525

0

525


 

543


 

(3%)

Sensipar® / Mimpara®


 

150

82

232


 

199


 

17%

Vectibix®


 

31

59

90


 

81


 

11%

Nplate®


 

50

36

86


 

75


 

15%

XGEVA®


 

156

23

179


 

73


 

*

Prolia®


 

75

45

120


 

44


 

*

Other 


 

0

27

27


 

11


 

*


 

 

 

 

Posted: July 2012


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