AMGEN INC. THOUSAND OAKS, Calif., April 28, 2016 /PRNewswire/ -- Amgen (NASDAQ:AMGN) today announced financial results for the first quarter of 2016. Key results include:
-- Total revenues increased 10 percent versus the first quarter of 2015 to
$5,527 million, with 7 percent product sales growth driven by Enbrel(®)
(etanercept), Prolia(®) (denosumab), Aranesp(®) (darbepoetin alfa),
Neulasta(®) (pegfilgrastim), Kyprolis(®) (carfilzomib) and XGEVA(®)
(denosumab).
-- Adjusted EPS grew 17 percent versus the first quarter of 2015 to $2.90
driven by higher revenues and higher operating margins.
-- Adjusted operating income increased 17 percent to $2,859 million and
adjusted operating margin improved by 4.4 percentage points to 54.6
percent.
-- GAAP EPS were $2.50 compared to $2.11 and GAAP operating income was
$2,402 million compared to $2,022 million.
-- Free cash flow was $1.8 billion compared to $1.4 billion in the first
quarter of 2015 driven by higher revenues and higher operating income.
"We are off to a strong start in 2016 delivering results for the year and laying groundwork for our long-term growth with innovative new product launches globally," said Robert A. Bradway, chairman and chief executive officer.
$Millions, except EPS and percentages Q1'16 Q1'15 YOY
----- ----- -----
Total Revenues $5,527 $5,033 10%
Adjusted Operating Income $2,859 $2,449 17%
Adjusted Net Income $2,203 $1,911 15%
Adjusted EPS $2.90 $2.48 17%
GAAP Operating Income $2,402 $2,022 19%
GAAP Net Income $1,900 $1,623 17%
GAAP EPS $2.50 $2.11 18%
-------- ----- ----- ---
References in this release to
"adjusted" measures, measures
presented "on an adjusted basis" and
to free cash flow refer to non-GAAP
financial measures. These adjustments
and other items are presented on the
attached reconciliations.
Product Sales Performance
-- Total product sales increased 7 percent for the first quarter of 2016
versus the first quarter of 2015. The increase was driven by ENBREL,
Prolia, Aranesp, Neulasta, Kyprolis and XGEVA.
-- ENBREL sales increased 24 percent driven by net selling price and
declining inventory levels in the prior year period, offset partially by
the impact of competition.
-- Neulasta sales increased 4 percent driven by both higher unit demand and
net selling price in the United States (U.S.).
-- Aranesp sales increased 11 percent. Unit demand grew due to a shift by
some U.S. dialysis customers from EPOGEN(®) (epoetin alfa) to Aranesp.
Unit demand growth was offset partially by unfavorable changes in net
selling price.
-- XGEVA sales increased 11 percent driven by higher unit demand.
-- Sensipar/Mimpara(®) (cinacalcet) sales increased 10 percent driven by
net selling price and higher unit demand, offset partially by
unfavorable changes in inventory levels.
-- Prolia sales increased 29 percent driven by higher unit demand.
-- EPOGEN sales decreased 44 percent driven by the impact of competition
and, to a lesser extent, a shift by some U.S. dialysis customers to
Aranesp.
-- NEUPOGEN(®) (filgrastim) sales decreased 13 percent driven by the
impact of competition in the U.S.
-- Kyprolis sales increased 43 percent driven by higher unit demand.
-- Vectibix(®) (panitumumab) sales increased 18 percent driven by higher
unit demand.
-- Nplate(®) (romiplostim) sales increased 12 percent driven by higher
unit demand.
-- BLINCYTO(®) (blinatumomab) sales increased 80 percent driven by higher
unit demand.
Product Sales Detail by Product and Geographic Region
$Millions, except percentages Q1'16 Q1'15 YOY
----- ----- -----
US ROW TOTAL TOTAL TOTAL
--- --- ----- ----- -----
Enbrel(R) $1,326 $59 $1,385 $1,116 24%
Neulasta(R) 996 187 1,183 1,134 4%
Aranesp(R) 261 271 532 480 11%
XGEVA(R) 271 107 378 340 11%
Sensipar(R) / Mimpara(R) 278 89 367 334 10%
Prolia(R) 221 131 352 272 29%
EPOGEN(R) 300 0 300 534 (44%)
NEUPOGEN(R) 150 63 213 246 (13%)
Kyprolis(R) 129 25 154 108 43%
Vectibix(R) 56 88 144 122 18%
Nplate(R) 86 55 141 126 12%
BLINCYTO(R) 21 6 27 15 80%
Repatha(R) 14 2 16 0 *
Other** 10 37 47 47 0%
--- --- ---
Total product sales $4,119 $1,120 $5,239 $4,874 7%
====== ====== ====== ====== ===
* Not meaningful
** Other includes MN Pharma, Bergamo, IMLYGIC(TM) and Corlanor(R)
----------------------------------------------------------------
Operating Expense, Operating Margin and Tax Rate Analysis, on an Adjusted Basis
-- Cost of Sales margin improved by 1.6 percentage points driven by
manufacturing efficiencies, higher net selling price and lower
royalties.
-- Research & Development (R&D) expenses were flat.
-- Selling, General & Administrative (SG&A) expenses increased 11 percent
driven by investments in new product launches.
-- Operating Expenses increased 3 percent, with all expense categories
reflecting savings from our transformation and process improvement
efforts.
-- Operating Margin improved by 4.4 percentage points to 54.6 percent.
-- Tax Rate increased 1.9 percentage points due to changes in the
geographic mix of earnings and the prior year benefit of a state tax
audit settlement, offset partially by the benefit in the first quarter
of 2016 of adopting the new Accounting Standard Update 2016-09,
Improvements to Employee Share-Based Payment Accounting.
$Millions, except percentages
On an Adjusted Basis Q1'16 Q1'15 YOY
----- ----- -----
Cost of Sales* $707 $735 (4%)
% of sales 13.5% 15.1% (1.6) pts.
Research & Development $858 $856 0%
% of sales 16.4% 17.6% (1.2) pts.
Selling, General &
Administrative $1,103 $993 11%
% of sales 21.1% 20.4% 0.7 pts.
TOTAL Operating Expenses $2,668 $2,584 3%
Operating Margin
operating
income as a
% of sales 54.6% 50.2% 4.4 pts.
Tax Rate* 18.9% 17.0% 1.9 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 1.9 pts. lower for 2016 and 2015,
respectively; and the Tax Rate would be 2.4
pts. and 2.8 pts. higher for 2016 and 2015,
respectively.
--- -----------------------------------------------
Cash Flow and Balance Sheet
-- The Company generated $1.8 billion of free cash flow in the first
quarter of 2016 versus $1.4 billion in the first quarter of 2015 driven
by higher revenues and higher operating income.
-- The Company's second quarter 2016 dividend of $1.00 per share declared
on March 2, 2016, will be paid on June 8, 2016, to all stockholders of
record as of May 17, 2016.
-- During the first quarter, the Company repurchased 4.7 million shares of
common stock at a total cost of $690 million. At the end of the first
quarter, the Company had $4.2 billion remaining under its stock
repurchase authorization.
$Billions, except shares Q1'16 Q1'15 YOY
----- ----- -----
Operating Cash
Flow $1.9 $1.5 $0.4
Capital
Expenditures 0.2 0.1 0.0
Free Cash Flow 1.8 1.4 0.4
Dividends Paid 0.8 0.6 0.2
Share
Repurchase 0.7 0.5 0.2
Avg. Diluted
Shares
(millions) 760 770 (10)
Cash and
Investments 34.7 27.1 7.6
Debt
Outstanding 34.3 30.2 4.1
Stockholders'
Equity 28.7 26.5 2.2
Note: Numbers may not add due to
rounding
--------------------------------
2016 Guidance
For the full year 2016, the Company now expects:
-- Total revenues in the range of $22.2 billion to $22.6 billion and
adjusted EPS in the range of $10.85 to $11.20. Previously, the Company
expected total revenues in the range of $22.0 billion to $22.5 billion
and adjusted EPS in the range of $10.60 to $11.00.
-- Adjusted tax rate in the range of 19 percent to 20 percent.
-- Capital expenditures to be approximately $700 million.
First Quarter Product and Pipeline Update
Key 2016 development milestones:
Clinical Program Indication Milestone
---------------- ---------- ---------
Repatha(R) (evolocumab) Hyperlipidemia Phase 3 coronary imaging data expected H2
Phase 3 CV outcomes data expected H2*
--- --- -------------------------------------
Kyprolis Relapsed multiple myeloma EU regulatory review (ENDEAVOR)
-------- ------------------------- ------------------------------
Parsabiv(TM) (etelcalcetide)** Secondary hyperparathyroidism Global regulatory reviews
---------------------------- ----------------------------- -------------------------
XGEVA Prevention of SREs in multiple myeloma Phase 3 data expected H2*
----- -------------------------------------- ------------------------
AMG 334 Migraine Prophylaxis Phase 2b chronic migraine data expected mid-year
Phase 3 episodic migraine data expected H2
--- --- ------------------------------------------
ABP 215 Oncology Global regulatory submissions expected
(biosimilar bevacizumab)
----------------------- ---
ABP 501 Inflammatory diseases Global regulatory reviews
(biosimilar adalimumab)
---------------------- ---
ABP 980 Breast Cancer Phase 3 data expected H2
(biosimilar trastuzumab)
----------------------- ---
*Event driven study; **Trade name
provisionally approved by FDA; CV =
cardiovascular
The Company provided the following updates on selected product and pipeline programs:
Repatha
-- In February, a Phase 3 study evaluating Repatha in patients with high
cholesterol who cannot tolerate statins met the co-primary endpoints:
the mean percent reductions from baseline in low-density lipoprotein
cholesterol (LDL-C) at weeks 22 and 24, and the percent reduction from
baseline in LDL-C at week 24.
BLINCYTO
-- In March, a supplemental Biologics License Application (sBLA) was
submitted to the U.S. Food and Drug Administration (FDA) for the
treatment of pediatric and adolescent patients with Philadelphia
chromosome-negative relapsed or refractory B-cell precursor acute
lymphoblastic leukemia (ALL).
-- In February, a Phase 3 open-label study evaluating the efficacy of
BLINCYTO versus standard of care in adult patients with Philadelphia
chromosome-negative relapsed or refractory B-cell precursor ALL met the
primary endpoint of improved overall survival at a prespecified interim
analysis.
IMLYGIC((TM) )(talimogene laherparepvec)
-- In February, enrollment initiated for a Phase 3 study evaluating IMLYGIC
in combination with KEYTRUDA(® )(pembrolizumab) in patients with
unresectable metastatic melanoma.
XGEVA
-- In March, enrollment completed for a Phase 3 event-driven study
evaluating XGEVA compared with zoledronic acid for the prevention of
skeletal-related events in patients with newly diagnosed multiple
myeloma. Data from the study are expected in H2 2016.
ENBREL
-- In March, an sBLA for the treatment of pediatric patients with chronic
severe plaque psoriasis was accepted for review by FDA.
Romosozumab
-- In March, a Phase 3 study evaluating romosozumab in men with
osteoporosis met the primary endpoint by increasing bone mineral density
at the lumbar spine at 12 months.
-- In February, a Phase 3 study evaluating romosozumab in postmenopausal
women with osteoporosis met the co-primary endpoints by reducing the
incidence of new vertebral fracture through months 12 and 24. The study
also met a secondary endpoint by reducing the incidence of clinical
fractures through 12 months.
AMG 334
-- Data from a Phase 2b study in patients with chronic migraine are
expected mid-year 2016.
-- Data from two Phase 3 studies in patients with episodic migraine are
expected in H2 2016.
Romosozumab is developed in collaboration with UCB globally, as well as Astellas in Japan
AMG 334 is developed in collaboration with Novartis
KEYTRUDA(®) is a registered trademark of Merck Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc.
Non-GAAP Financial Measures
In this news release, management has presented its operating results for the first quarters of 2016 and 2015 in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and on an adjusted (or non-GAAP) basis. In addition, management has presented its full year 2016 EPS and tax rate guidance in accordance with GAAP and on an adjusted (or non-GAAP) basis. These non-GAAP financial measures are computed by excluding certain items related to acquisitions, restructuring and certain other items from the related GAAP financial measures. Management has also presented Free Cash Flow (FCF), which is a non-GAAP financial measure, for the first quarters of 2016 and 2015. FCF is computed by subtracting capital expenditures from operating cash flow, each as determined in accordance with GAAP. Reconciliations for these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the news release.
The Company believes that its presentation of non-GAAP financial measures provides useful supplementary information to and facilitates additional analysis by investors. The Company uses certain non-GAAP financial measures to enhance an investor's overall understanding of the financial performance and prospects for the future of the Company's core business activities by facilitating comparisons of results of core business operations among current, past and future periods. In addition, the Company believes that excluding the non-cash amortization of intangible assets, including developed product technology rights, acquired in business combinations treats those assets as if the Company had developed them internally in the past, and thus provides a supplemental measure of profitability in which the Company's acquired intellectual property is treated in a comparable manner to its internally developed intellectual property. The Company believes that FCF provides a further measure of the Company's liquidity.
The Company uses the non-GAAP financial measures set forth in the news release in connection with its own budgeting and financial planning. The non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
About Amgen
Amgen is committed to unlocking the potential of biology for patients suffering from serious illnesses by discovering, developing, manufacturing and delivering innovative human therapeutics. This approach begins by using tools like advanced human genetics to unravel the complexities of disease and understand the fundamentals of human biology.
Amgen focuses on areas of high unmet medical need and leverages its biologics manufacturing expertise to strive for solutions that improve health outcomes and dramatically improve people's lives. A biotechnology pioneer since 1980, Amgen has grown to be one of the world's leading independent biotechnology companies, has reached millions of patients around the world and is developing a pipeline of medicines with breakaway potential.
For more information, visit www.amgen.com and follow us on www.twitter.com/amgen.
Forward-Looking Statements
This news release contains forward-looking statements that are based on the current expectations and beliefs of Amgen. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including estimates of revenues, operating margins, capital expenditures, cash, other financial metrics, expected legal, arbitration, political, regulatory or clinical results or practices, customer and prescriber patterns or practices, reimbursement activities and outcomes and other such estimates and results. Forward-looking statements involve significant risks and uncertainties, including those discussed below and more fully described in the Securities and Exchange Commission reports filed by Amgen, including our most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and Form 8-K. Unless otherwise noted, Amgen is providing this information as of the date of this news release and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
No forward-looking statement can be guaranteed and actual results may differ materially from those we project. Our results may be affected by our ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments involving current and future products, sales growth of recently launched products, competition from other products including biosimilars, difficulties or delays in manufacturing our products and global economic conditions. In addition, sales of our products are affected by pricing pressure, political and public scrutiny and reimbursement policies imposed by third-party payers, 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 healthcare cost containment. 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. In addition, our business may be impacted by the adoption of new tax legislation or exposure to additional tax liabilities. If we fail to meet the compliance obligations in the corporate integrity agreement between us and the U.S. government, we could become subject to significant sanctions. 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, or we may fail to prevail in present and future intellectual property litigation. We perform a substantial amount of our commercial manufacturing activities at a few key facilities and also depend on third parties for a portion of our manufacturing activities, 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 many 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. The discovery of significant problems with a product similar to one of our products that implicate an entire class of products could have a material adverse effect on sales of the affected products and on our business and results of operations. Our efforts to acquire other companies or products and to integrate the operations of companies we have acquired may not be successful. We may not be able to access the capital and credit markets on terms that are favorable to us, or at all. We are increasingly dependent on information technology systems, infrastructure and data security. Our stock price is volatile and may be affected by a number of events. Our business performance could affect or limit the ability of our Board of Directors to declare a dividend or our ability to pay a dividend or repurchase our common stock.
Amgen Inc.
Consolidated Statements of Income - GAAP
(In millions, except per share data)
(Unaudited)
Three months ended
March 31,
---------
2016 2015
---- ----
Revenues:
Product sales $5,239 $4,874
Other
revenues 288 159
Total revenues 5,527 5,033
----- -----
Operating expenses:
Cost of sales 1,018 1,033
Research and
development 872 894
Selling,
general and
administrative 1,203 1,026
Other 32 58
Total operating expenses 3,125 3,011
----- -----
Operating income 2,402 2,022
Interest expense, net 294 252
Interest and other income, net 150 106
--- ---
Income before income taxes 2,258 1,876
Provision for income taxes 358 253
Net income $1,900 $1,623
====== ======
Earnings per share:
Basic $2.52 $2.13
Diluted $2.50 $2.11
Weighted average shares used in
calculation of earnings per share:
Basic 753 761
Diluted 760 770
Amgen Inc.
Consolidated Balance Sheets - GAAP
(In millions)
(Unaudited)
March 31, December 31,
2016 2015
---- ----
Assets
Current
assets:
Cash, cash
equivalents
and
marketable
securities $34,740 $31,382
Trade
receivables,
net 3,078 2,995
Inventories 2,572 2,435
Other current
assets 1,816 1,703
Total
current
assets 42,206 38,515
Property,
plant and
equipment,
net 4,885 4,907
Intangible
assets, net 11,448 11,641
Goodwill 14,804 14,787
Other assets 1,773 1,599
----- -----
Total assets $75,116 $71,449
======= =======
Liabilities
and
Stockholders'
Equity
Current
liabilities:
Accounts
payable and
accrued
liabilities $6,276 $6,417
Current
portion of
long-term
debt 2,247 2,247
Total
current
liabilities 8,523 8,664
Long-term
debt 32,060 29,182
Long-term
deferred
tax
liability 2,202 2,239
Other
noncurrent
liabilities 3,649 3,281
Stockholders'
equity 28,682 28,083
------ ------
Total
liabilities
and
stockholders'
equity $75,116 $71,449
======= =======
Shares
outstanding 751 754
Amgen Inc.
GAAP to Adjusted Reconciliations
(In millions)
(Unaudited)
Three months ended
March 31,
---------
2016 2015
---- ----
GAAP cost of sales $1,018 $1,033
Adjustments to cost of sales:
Acquisition-related expenses (a) (311) (284)
Certain net charges pursuant to our restructuring
initiative - (14)
Total adjustments to cost of sales (311) (298)
Adjusted cost of sales $707 $735
======================
GAAP research and development expenses $872 $894
Adjustments to research and development expenses:
Acquisition-related expenses (a) (19) (21)
Certain net charges pursuant to our restructuring
initiative 5 (17)
Total adjustments to research and development
expenses (14) (38)
Adjusted research and development expenses $858 $856
======================
GAAP selling, general and administrative expenses $1,203 $1,026
Adjustments to selling, general and administrative
expenses:
Acquisition-related expenses (b) (101) (29)
Certain net charges pursuant to our restructuring
initiative 1 (4)
Total adjustments to selling, general and
administrative expenses (100) (33)
Adjusted selling, general and administrative
expenses $1,103 $993
======
GAAP operating expenses $3,125 $3,011
Adjustments to operating expenses:
Adjustments to cost of sales (311) (298)
Adjustments to research and development expenses (14) (38)
Adjustments to selling, general and administrative
expenses (100) (33)
Certain net charges pursuant to our restructuring
initiative (c) (2) (57)
Expense related to a legal proceeding (27) -
Other (3) (1)
Total adjustments to operating expenses (457) (427)
Adjusted operating expenses $2,668 $2,584
======
GAAP operating income $2,402 $2,022
Adjustments to operating expenses 457 427
Adjusted operating income $2,859 $2,449
======
GAAP income before income taxes $2,258 $1,876
Adjustments to operating expenses 457 427
Adjusted income before income taxes $2,715 $2,303
======
GAAP provision for income taxes $358 $253
Adjustments to provision for income taxes:
Income tax effect of the above adjustments (d) 139 139
Other income tax adjustments (e) 15 -
Total adjustments to provision for income taxes 154 139
Adjusted provision for income taxes $512 $392
======================
GAAP net income $1,900 $1,623
Adjustments to net income:
Adjustments to income before income taxes, net of
the income tax effect of the above adjustments 318 288
Other income tax adjustments (e) (15) -
Total adjustments to net income 303 288
Adjusted net income $2,203 $1,911
======
Amgen Inc.
GAAP to Adjusted Reconciliations
(In millions, except per share data)
(Unaudited)
The following table presents the computations for GAAP
and Adjusted diluted EPS.
Three months ended Three months ended
March 31, 2016 March 31, 2015
-------------- --------------
GAAP Adjusted GAAP Adjusted
---- -------- ---- --------
Net income $1,900 $2,203 $1,623 $1,911
Weighted-average shares
for diluted EPS 760 760 770 770
Diluted EPS $2.50 $2.90 $2.11 $2.48
===========
(a) The
adjustments
related
primarily to
non-cash
amortization
of intangible
assets
acquired in
business
combinations.
(b) The 2016
adjustments
related
primarily to
a $73-
million
charge
resulting
from the
reacquisition
of Prolia(R),
XGEVA(R) and
Vectibix(R)
license
agreements in
certain
markets from
Glaxo Group
Limited, as
well as non-
cash
amortization
of intangible
assets
acquired in
business
combinations.
The 2015
adjustments
related
primarily to
non-cash
amortization
of intangible
assets
acquired in
business
combinations.
(c) The 2015
adjustments
related
primarily to
severance
expenses.
(d) The tax effect
of the
adjustments
between our
GAAP and
Adjusted
results takes
into account
the tax
treatment and
related tax
rate(s) that
apply to each
adjustment in
the
applicable
tax
jurisdiction(s).
Generally,
this results
in a tax
impact at the
U.S. marginal
tax rate for
certain
adjustments,
including the
majority of
amortization
of intangible
assets,
whereas the
tax impact of
other
adjustments,
including
restructuring
expense,
depends on
whether the
amounts are
deductible in
the
respective
tax
jurisdictions
and the
applicable
tax rate(s)
in those
jurisdictions.
Due to these
factors, the
effective tax
rates for the
adjustments
to our GAAP
income before
income taxes,
for the three
months ended
March 31,
2016 and
2015, were
30.4% and
32.6%,
respectively.
(e) The
adjustments
related to
certain prior
period items
excluded from
adjusted
earnings.
Amgen Inc.
Reconciliations of Free Cash Flow
(In millions)
(Unaudited)
Three months ended
March 31,
---------
2016 2015
---- ----
Operating
Cash Flow $1,915 $1,482 (a)
Capital
Expenditures (156) (118)
Free Cash
Flow $1,759 $1,364
==========
(a)
Restated
to include
$153
million,
which was
previously
included
in cash
flows from
financing
activities,
as a
result of
the
adoption
of
Accounting
Standard
Update
2016-09.
Amgen Inc.
Reconciliation of GAAP EPS Guidance to Adjusted
EPS Guidance for the Year Ending December 31, 2016
(Unaudited)
2016
----
GAAP diluted EPS guidance $9.34 - $9.74
Known adjustments to arrive at
Adjusted earnings*:
Acquisition-related expenses (a) 1.37
Restructuring charges 0.09 - 0.14
Legal proceeding charge 0.02
Tax adjustments (b) (0.02)
Adjusted diluted EPS guidance $10.85 - $11.20
====== === ======
* The known adjustments are presented net of their
related tax impact which amount to
approximately $0.68 to $0.70 per share, 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 certain prior period
items excluded from adjusted earnings.
Reconciliation of GAAP Tax Rate Guidance to Adjusted
Tax Rate Guidance for the Year Ending December 31, 2016
(Unaudited)
2016
----
GAAP tax rate guidance 16.5% - 17.5%
Tax rate effect
of known
adjustments
discussed above 2.5%
Adjusted tax rate guidance 19.0% - 20.0%
==== === ====
CONTACT: Amgen, Thousand Oaks
Trish Hawkins, 805-447-5631 (media)
Arvind Sood, 805-447-1060 (investors)
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SOURCE Amgen
