Amgen Reports 9% Increase in First-Quarter Earnings Per Share and Increases Earnings Per Share Guidance.Business Editors THOUSAND OAKS Thousand Oaks, residential city (1990 pop. 104,352), Ventura co., S Calif., in a farm area; inc. 1964. Avocados, citrus, vegetables, strawberries, and nursery products are grown. , Calif.--(BUSINESS WIRE)--April 25, 2000 Amgen (Nasdaq:AMGN) today announced that earnings per share for the first quarter ended March 31, 2000 increased 9 percent, to $0.25 from $0.23 for the first quarter of 1999. Net income increased 8 percent, to $266 million from $247 million for the first quarter of 1999. The Company also reported that each of its four near-term product candidates continued to advance during the quarter as they moved closer to commercialization. The quarter included a pretax benefit of approximately $40 million due to an increase in net corporate partner revenue related to the successful completion of the NESP NESP Neuroendocrine Secretory Protein NESP Navy EHF SATCOM Program NESP Nurse Educator Scholarship Program NESP Navy EHF Satellite Program NESP National Environmental Studies Project NESP National Education Supercomputer Program renal development program, a property tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. and gains on certain equity investments. Amgen's core business remains strong. The Company's total product sales guidance for the year remains unchanged. For the full year, Amgen is increasing its earnings per share guidance from $1.05 - $1.07 to $1.06 - $1.08. Total revenues increased 9 percent during the quarter, to $814 million from $746 million for the first quarter of 1999. Total product sales increased 1 percent during the first quarter, to $698 million from $688 million for the first quarter of 1999. Sales in the first quarter were reduced by approximately $95 million or 14 percent due to inventory drawdowns at the wholesaler and provider levels. Sales of EPOGEN(R) (Epoetin alfa e·po·e·tin al·fa n. A recombinant preparation of human erythropoietin used to treat some forms of anemia. epoetin alfa Epogen, Eprex (CA) (UK), Procrit Pharmacologic class: ) increased 12 percent during the first quarter, to $440 million from $395 million for the first quarter of 1999. The Company believes that inventory drawdowns by wholesalers and providers reduced first-quarter EPOGEN sales by approximately $36 million or 8 percent. In the fourth quarter of 1999, Amgen reported approximately $16 million of Y2K-related sales to wholesalers for which Amgen provided extended dating. The Company now believes there was additional year-end stockpiling stock·pile n. A supply stored for future use, usually carefully accrued and maintained. tr.v. stock·piled, stock·pil·ing, stock·piles To accumulate and maintain a supply of for future use. by dialysis providers of approximately $20 million, some of which may have been related to Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 concerns and year-end contract expirations. Amgen continues to expect the EPOGEN sales growth rate for the year to be in the low teens. Sales of NEUPOGEN(R) (Filgrastim) were also negatively impacted by inventory drawdowns in the quarter. NEUPOGEN sales decreased 13 percent in the first quarter, to $250 million from $287 million during the first quarter of 1999. The Company believes that inventory drawdowns reduced first-quarter NEUPOGEN sales by approximately $59 million or 24 percent. In the fourth quarter of 1999, Amgen reported approximately $29 million of Y2K-related sales to wholesalers for which Amgen provided extended dating. The Company now believes that, in addition to reducing first-quarter inventories by this $29 million, wholesalers made additional reductions of approximately $30 million. In addition, first-quarter international sales were negatively impacted by $8 million due to a stronger dollar. Underlying NEUPOGEN demand grew at a low double-digit rate in the first quarter, and Amgen expects continued solid demand growth for the remainder of the year. Amgen continues to expect NEUPOGEN sales growth to be in the mid single digits. "This is in an exciting time for Amgen as we prepare to launch several new products over the next few years. We continue to invest heavily in the future, while providing attractive earnings growth for our shareholders," said Gordon Binder Gordon Binder is currently managing director of Coastview Capital, LLC, and previously was chairman of Amgen[1]. He joined Amgen in 1982, and previously had executive roles at the United Geophysical Corporation and the System Development Corporation. , Chairman and Chief Executive Officer. During the first quarter of 2000, Amgen purchased 3.5 million shares at a total cost of $225 million. At the end of the quarter, $1.4 billion remained under Amgen's board authorization for purchases through the remainder of the year. Late-State Product Candidates Continue to Advance Amgen's four late-stage development programs, NESP, IL-1ra, abarelix and SD/01 continued to progress during the first quarter, and the Company is planning to launch these products in 2001 and 2002. During the first quarter, regulatory submissions for NESP and IL-1ra were formally accepted for filing by regulatory authorities. The regulatory submission for the use of NESP in patients with chronic renal insufficiency renal insufficiency A defect in renal ability to 'clear' waste products, a sign of inadequate glomerular filtration and chronic renal failure chronic renal failure Chronic kidney failure Nephrology A slow decline in renal function, which may be 2º to chronic HTN, DM, CHF, SLE, or sickle cell anemia and, if extreme, leads to ESRD, mandating kidney dialysis; an abrupt decline in renal function may be was accepted for filing in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. by the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. and in Europe by the European Medicines Evaluation Agency (EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. ). Applications for regulatory approval of NESP were filed during the first quarter of 2000 in Canada, Australia and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. . Amgen is continuing clinical development of NESP in phase 2 dose-finding and schedule-finding studies in cancer patients with chemotherapy-induced anemia. An abstract describing the pharmacokinetics of NESP in the oncology setting has been accepted for presentation at next May's 36th annual meeting of the American Society of Clinical Oncology American Society of Clinical Oncology, or ASCO, is an organization that represents all clinical oncologists. Every year, ASCO holds a large symposium where physicians and researchers meet to convey and discuss research and ideas. (ASCO ASCO American Society of Clinical Oncology ASCO Association of Schools and Colleges of Optometry (since 1941; Rockville, Maryland) ASCO Australian Standard Classification of Occupations ASCO Automatic Switch Company ). The regulatory submission for the use of IL-1ra in patients with rheumatoid arthritis rheumatoid arthritis Chronic, progressive autoimmune disease causing connective-tissue inflammation, mostly in synovial joints. It can occur at any age, is more common in women, and has an unpredictable course. was accepted for filing by the FDA. Amgen is now in discussions with regulatory authorities in Europe, where regulatory requirements are somewhat different from those in the United States and the Company hopes to file an IL-1ra regulatory submission with the EMEA later this year. In addition to the NESP oncology abstract, abstracts from several other development programs have been accepted for presentation at ASCO. Amgen and PRAECIS PHARMACEUTICALS submitted abstracts describing the results of two phase 3 prostate cancer prostate cancer, cancer originating in the prostate gland. Prostate cancer is the leading malignancy in men in the United States and is second only to lung cancer as a cause of cancer death in men. trials of abarelix-depot. The Company believes that both studies were successful and confirm the results seen in phase 2. Pending successful completion of the large ongoing open-label safety trial, these studies will serve as the basis for the PRAECIS submission to the FDA that Amgen hopes will be filed by the end of the year. Phase 2 abarelix studies in patients with endometriosis endometriosis (ĕn'dəmē'trē-ō`sĭs), a condition in which small pieces of the endometrium (the lining of the uterus) migrate to other places in the pelvic area. are ongoing. Abarelix is the first of a new class of GnRH depot antagonists antagonists, n muscles that counterbalance agonists during specific movements. opioid Neurology A pain-attenuating peptide that occurs naturally in the brain, which induces analgesia by mimicking endogenous opioids at opioid and may provide benefit to patients with hormonally responsive diseases such as prostate cancer and endometriosis. ASCO also accepted an abstract from the SD/01 phase 2, multi-cycle breast cancer program. These data provide further evidence of the ability of SD/01 to mitigate chemotherapy-induced neutropenia Neutropenia Definition Neutropenia is an abnormally low level of neutrophils in the blood. Neutrophils are white blood cells (WBCs) produced in the bone marrow that ingest bacteria. . The program continues to advance in phase 3 studies in this country, Europe, Canada and Australia. Amgen has also submitted abstracts from its calcimimetics program for presentation at the annual meeting of the American Society for Bone and Mineral Research and at the annual meeting of the American Society of Nephrology nephrology Branch of medicine dealing with kidney function and diseases. An understanding of kidney physiology is important not only in treating kidney disease but in knowing the effect of drugs, diet, and hypertension on kidney disease, and vice versa. , both occurring this fall. Amgen is enthusiastic about its calcimimetics program and the drug's potential to impact both primary and secondary hyperparathyroidism secondary hyperparathyroidism Endocrinology ↑ Parathyroid activity with overproduction of PTH due to parathyroid hyperplasia in response to an extraparathyroid defect that results in ↓ Ca2+ Etiology Rickets, vitamin D deficiency, chronic renal failure . This news release contains forward-looking statements that 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 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Amgen conducts research in the biotechnology/pharmaceutical field where 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. Furthermore, our research, testing, pricing, marketing and other operations are subject to extensive regulation by domestic and foreign government regulatory authorities. 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. These government regulations and reimbursement policies may affect the development, usage and pricing of our products. In addition, while we routinely obtain patents for our products and technology, the protection offered by our patents and patent applications may be challenged, invalidated in·val·i·date tr.v. in·val·i·dat·ed, in·val·i·dat·ing, in·val·i·dates To make invalid; nullify. in·val or circumvented by our competitors. Amgen is a global biotechnology company that discovers, develops, manufactures and markets cost-effective human therapeutics based on advances in cellular and molecular biology molecular biology, scientific study of the molecular basis of life processes, including cellular respiration, excretion, and reproduction. The term molecular biology was coined in 1938 by Warren Weaver, then director of the natural sciences program at the Rockefeller . EDITOR'S NOTE Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : An electronic version of this news release may be accessed via our web site at www.Amgen.com. Visit the Corporate Center and click on Amgen News. Journalists and media representatives may sign up to receive all news releases electronically at time of announcement by filling out a short form in the Amgen News section of the web site.
Amgen Inc.
Condensed Consolidated Statements of Operations
(In millions, except per share data)
(Unaudited)
Three Months Ended
March 31,
2000 1999
Revenues:
Product sales $697.6 $688.3
Corporate partner revenues 74.2 27.0
Royalty income 42.3 30.2
Total revenues 814.1 745.5
Operating expenses:
Cost of sales 85.7 92.4
Research and development 189.8 188.0
Selling, general and administrative 169.7 132.9
Loss of affiliates, net 16.4 2.8
Total operating expenses 461.6 416.1
Operating income 352.5 329.4
Other income (expense):
Interest and other income 36.4 18.5
Interest expense, net (4.2) (2.2)
Total other income 32.2 16.3
Income before income taxes 384.7 345.7
Provision for income taxes 118.5 98.5
Net income $266.2 $247.2
Earnings per share:
Basic earnings per share $0.26 $0.24
Diluted earnings per share $0.25 $0.23
Shares used in calculation of:
Basic earnings per share 1,023.1 1,023.5
Diluted earnings per share 1,085.7 1,080.9
-0-
Amgen Inc.
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
March 31, December 31,
2000 1999
Assets
Current assets:
Cash and marketable securities $1,479.6 $1,333.0
Trade receivables 259.1 412.2
Inventories 237.6 184.3
Other current assets 177.3 135.8
Total current assets 2,153.6 2,065.3
Property, plant and equipment, net 1,595.3 1,553.6
Other non-current assets 515.8 458.7
Total assets $4,264.7 $4,077.6
Liabilities and Stockholders' Equity
Current liabilities $730.7 $831.1
Non-current liabilities 223.0 223.0
Stockholders' equity 3,311.0 3,023.5
Total liabilities
and stockholders' equity $4,264.7 $4,077.6
Shares outstanding 1,026.8 1,017.9
|
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion