Amgen Reports 9 Percent Increase in First-Quarter Earnings Per Share.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 22, 1998--Amgen (Nasdaq:AMGN) Wednesday announced earnings for the first quarter ended March 31, 1998, were $0.71, an increase of 9 percent from $0.65 for the first quarter a year ago. Net income was $187 million for the quarter, up 4 percent from $180 million for the first quarter a year ago. Total revenues for the quarter increased by 5 percent, to $605 million from $576 million for the same quarter of 1997. First-quarter sales for each product were: NEUPOGEN(R) (Filgrastim) up 7 percent, to $261 million; 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: ) up 4 percent, to $304 million; and INFERGEN(R), which was approved by the Food and Drug Administration in October, $1 million. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased by just 3 percent during the quarter, reflecting the Company's continued commitment to tight expense management. "We are pleased with recent changes to EPOGEN reimbursement rules made by the Health Care Financing Administration Health Care Financing Administration, n.pr department in the U.S. agency of Health and Human Services responsible for the oversight of the Medicaid and Medicare benefit programs, including guidelines, payment, and coverage policies. , which will make it possible for patients to receive more appropriate treatment. These changes include restoring to physicians the right to decide what level of red blood cells Red blood cells Cells that carry hemoglobin (the molecule that transports oxygen) and help remove wastes from tissues throughout the body. Mentioned in: Bone Marrow Transplantation red blood cells their dialysis patients should have," 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. Earlier this month, NEUPOGEN was approved 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. for its fifth indication, to reduce the time to neutrophil neutrophil /neu·tro·phil/ (noo´tro-fil) 1. a granular leukocyte having a nucleus with three to five lobes connected by threads of chromatin, and cytoplasm containing very fine granules; cf. heterophil. 2. recovery and the duration of fever following chemotherapy treatment in patients being treated for acute myelogenous leukemia acute myelogenous leukemia n. Abbr. AML Myelogenous leukemia characterized by rapid abnormal increase in the number of myeloblasts and progression of symptoms. (AML AML - A Manufacturing Language ). European Union member states have also agreed to authorize NEUPOGEN for use in patients with AML, although local approvals are still pending. Good progress was made during the quarter on a number of research and development programs. During the quarter, Amgen started a phase 1 pharmacokinetic trial with a second-generation leptin Leptin A protein hormone that affects feeding behavior and hunger in humans. At present it is thought that obesity in humans may result in part from insensitivity to leptin. molecule which, it is hoped, will facilitate delivery of higher doses of the protein. Also during the quarter, Amgen began a phase 2 clinical trial phase 2 clinical trial Phase 2 study. See Phase study. of its novel erythropoiesis erythropoiesis /eryth·ro·poi·e·sis/ (-poi-e´sis) the formation of erythrocytes.erythropoiet´ic e·ryth·ro·poi·e·sis n. The formation or production of red blood cells. stimulating protein (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 ) in U.S. dialysis patients. Following an approximate six-month period, during which Amgen considered a number of corporate partnering alternatives for its inflammation program in Boulder, Colo., Amgen has decided to pursue separate paths with its inflammation product development programs and its inflammation discovery research program. Amgen will retain its principal product candidates, STNFr-1 and IL-1ra, and relocate the related development programs to Thousand Oaks. Amgen will not continue the Boulder inflammation discovery research program; employees are seeking investment capital in order to continue this research in a new company. If those efforts are successful, Amgen expects to receive equity in exchange for its intellectual property. This news release contains forward-looking statements that involve risks and uncertainties, including risks associated with sales, preclinical and clinical development, regulatory matters and other risks described from time to time in the Securities and Exchange Commission reports filed by Amgen, including the recently-filed 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 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 . -0- 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 the company's 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,
1998 1997
Revenues:
Product sales $ 566.8 $ 536.0
Corporate partner revenues 22.6 27.4
Royalty income 16.0 12.1
Total revenues 605.4 575.5
Operating expenses:
Cost of sales 79.0 72.0
Research and development 152.5 147.7
Marketing and selling 66.8 68.1
General and administrative 46.3 44.4
Loss of affiliates, net 6.2 8.5
Total operating expenses 350.8 340.7
Operating income 254.6 234.8
Other income/(expense):
Interest and other income 15.2 15.9
Interest expense, net (2.2) (0.3)
Total other income/(expense) 13.0 15.6
Income before income taxes 267.6 250.4
Provision for income taxes 80.3 70.1
Net income $ 187.3 $ 180.3
Earnings per share:
Basic earnings per share $ 0.73 $ 0.68
Diluted earnings per share $ 0.71 $ 0.65
Shares used in calculation of:
Basic earnings per share 256.2 265.2
Diluted earnings per share 264.1 278.1
Amgen Inc.
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
March 31, 1998 Dec. 31, 1997
Assets
Current assets:
Cash and marketable securities $ 880.1 $1,026.5
Trade receivables 289.2 269.0
Inventories 118.1 109.2
Other current assets 124.3 138.8
Total current assets 1,411.7 1,543.5
Property, plant and equipment, net 1,277.5 1,186.2
Other non-current assets 392.3 380.5
Total assets $3,081.5 $3,110.2
Liabilities and stockholders' equity
Current liabilities $ 824.9 $ 741.9
Non-current liabilities 226.7 229.0
Stockholders' equity 2,029.9 2,139.3
Total liabilities and stockholders'
equity $3,081.5 $3,110.2
Shares outstanding 254.1 258.3
CONTACT: Amgen Inc., Thousand Oaks David Kaye, 805/447-6692 (media) Denise Powell, 805/447-4346 (investors) |
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