Amgen Reports Third Quarter Results, New Product Launch and $1 Billion Stock Repurchase Plan.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)--Oct. 22, 1997--Amgen (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AMGN) today announced that earnings per share for the third quarter ended September 30, 1997 were $0.31, down 52 percent from $0.64 for the same quarter a year ago, primarily due to a previously announced third quarter charge of $0.35 per share relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a spillover spill·o·ver n. 1. The act or an instance of spilling over. 2. An amount or quantity spilled over. 3. A side effect arising from or as if from an unpredicted source: arbitration award An arbitration award (or arbitral award) is a determination on the merits by an arbitration tribunal in an arbitration, and is analogous to a judgment in a court of law. to Ortho Pharmaceuticals. Net income was down 53 percent, to $84 million from $179 million for the same quarter a year ago. Total revenues for the third quarter ended September 30, 1997 were up 6 percent, to $598 million from $567 million for the same quarter a year ago. For the nine-month period ended September 30, 1997, earnings per share were down 6 percent, to $1.68 from $1.78 for the nine-month period in 1996. Net income was down 7 percent for the nine-month period this year, to $465 million from $502 million in 1996. Total revenues increased 9 percent for the nine-month period, to $1.8 billion from $1.6 billion in 1996. Sales of NEUPOGEN(R) (Filgrastim) increased 4 percent during the quarter, to $268 million from $259 million for the same quarter in 1996, and 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 4 percent, to $285 million from $275 million for the same quarter a year ago. For 1997, Amgen anticipates a single-digit annual sales growth rate for EPOGEN and for total product sales. The Company said that it expects earnings per share to grow at a low double-digit rate in 1997, excluding the aforementioned spillover arbitration award. During the third quarter, the Company substantially completed its authorized 1997 stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. of $450 million. Amgen's Board of Directors has authorized the additional repurchase of up to $1 billion in Amgen common stock through the end of 1998. ``Cash of $1.1 billion and our excellent cash flow make this possible,'' 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. Amgen said it is aware of reports that a draft report by the Inspector General provided to Medicare officials recommends a 10 percent cut in Medicare reimbursement for EPOGEN. The Company believes that the Inspector General's report is now in a period of comment and cannot predict when a final recommendation will be publicly issued. In October, Amgen launched its third product, INFERGEN(R) (Interferon alfacon-1), for the treatment of chronic hepatitis Chronic hepatitis Long lasting inflammation of the liver due to viruses or other causes. Mentioned in: Tube Compression of the Esophagus and Stomach chronic hepatitis C (HCV HCV abbr. hepatitis C virus HCV 1 Hepatitis C virus, see there 2. Human coronavirus. See Coronavirus. ) infection. The drug has been shown to be safe and effective in HCV patients who have never been treated with previous interferon therapy. In addition, HCV patients who have not responded or who have relapsed after prior treatment with interferon alfa-2b interferon alfa-2b, recombinant Intron A, Viraferon (UK) Pharmacologic class: Biological response modifier Therapeutic class: Antineoplastic, antiviral Pregnancy risk category C or INFERGEN may also benefit from subsequent treatment with a higher dose of INFERGEN.``This significant development completes our transition from a two- product company to a multi-product company,'' Binder said. ``We expect to launch our fourth product during 1998, and we have several medically important product candidates at various stages of clinical development for treating some potentially very large patient populations.'' During the quarter, the Company also achieved a number of product development milestones: -- Two Phase 2 trials of 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. began, one in obesity and the other in Type II diabetes Type II diabetes Type II diabetes is the most common form of diabetes and usually appears in middle aged adults. It is often associated with obesity and may be delayed or controlled with diet and exercise. Mentioned in: Diabetic Ketoacidosis . The studies are planned to treat more than 300 patients in total. -- The Company will continue to pursue intrathecal intrathecal /in·tra·the·cal/ (-the´k'l) within a sheath; through the theca of the spinal cord into the subarachnoid space. Intrathecal development of brain derived neurotrophic factor neurotrophic factor A generic term for any of a family of substances with roles in maintenance and survival of neurons–eg, secretory proteins, nerve growth factors–see there, brain-derived growth factor, neurotrophin-3 (BDNF BDNF Brain-Derived Neurotrophic Factor BDNF Beaverhead-Deerlodge National Forest (Montana) ) in ALS Als (äls), Ger. Alsen, island, 121 sq mi (313 sq km), Sønderjylland co., S Denmark, in the Lille Bælt, separated from the mainland by the narrow Alensund. patients only. Additional trials of neurotrophin-3 (NT-3) in diabetic or chemotherapy-induced neuropathy neuropathy Disorder of the peripheral nervous system. It may be genetic or acquired, progress quickly or slowly, involve motor, sensory, and/or autonomic (see autonomic nervous system) nerves, and affect only certain nerves or all of them. will not be pursued at the present time because initial results are not sufficiently promising to justify the expenditures for the inherently long and large development program required for these studies. -- The Company also started a Phase 3 clinical trial phase 3 clinical trial Phase 3 study. See Phase study. of its platelet growth factor, megakaryocyte megakaryocyte /mega·karyo·cyte/ (-sit?) the giant cell of bone marrow containing a greatly lobulated nucleus, from which mature blood platelets originate.megakaryocyt´ic meg·a·kar·y·o·cyte n. growth and development factor (PEG-rHuMGDF), to support cancer patients receiving bone marrow transplants. Other Phase 2 chemotherapy studies are ongoing. Amgen also said that early data presented at this week's meeting of the American Association American Association refers to one of the following professional baseball leagues:
of MGDF MGDF Megakaryocyte Growth and Development Factor in normal platelet donors looks promising and suggests that the protein is generally safe and well-tolerated and effective in increasing platelet counts and yields. Prior to proceeding to multi-dosing studies in the normal donor program, Amgen is reviewing safety data from all MGDF studies. No general safety concerns have been identified so far in more than 400 patients given MGDF except for two cases of potentially inhibitory antibodies seen in one high dose chemotherapy study. -- Also during the quarter, Amgen and Guilford Pharmaceuticals announced an agreement granting Amgen worldwide rights to Guilford's FKBP-neuroimmunophilin ligands, small molecule neurotrophic agents that may represent a new approach to treating neurodegenerative disorders. The Company also announced during the quarter that it is seeking a corporate partner for its ongoing inflammation research and development program headquartered in Boulder, Colo., to ensure that the full potential of its inflammation program is realized. As previously disclosed, on September 15, the Arbitrator in the Ortho Pharmaceutical v. Amgen arbitration issued an opinion adopting Amgen's audit methodology to allocate the sales of Epoetin alfa between the two companies. While further guidance from the Arbitrator is required to clarify his ruling, Amgen estimated that the effect of the ruling will be a net spillover payment to Ortho after benefit of income tax effects of approximately $78 million for the 1991-94 period and interest on this amount of $18 million after tax. Pending determination by the Arbitrator, the Company has not taken any benefit for the possible recovery of its costs and attorneys' fees or audit costs and has retained spillover reserves. Ortho has asserted that Amgen owes a higher amount for the 1991-94 period and disputes Amgen's entitlement to reimbursement for attorneys' fees and costs. Accordingly, there can be no assurance that the Arbitrator will award such reimbursement. Additional guidance from the Arbitrator is being sought to calculate spillover payments, if any, that may be due to Amgen or Ortho for 1995, 1996 and 1997. 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 SEC reports filed by Amgen, including the recently filed 10-Q. Amgen is a global biotechnology company that discovers, develops, manufactures and markets 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 Amgen'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 Nine Months Ended
Sept. 30, Sept. 30,
1997 1996 1997 1996
Revenues:
Product sales $552.8 $533.3 $1,655.5 $1,529.1
Corporate partner
revenues 30.8 23.1 98.2 86.9
Royalty income 14.7 10.6 40.6 30.3
Total revenues 598.3 567.0 1,794.3 1,646.3
Operating expenses:
Cost of sales 74.3 73.1 223.1 208.3
Research and
development 172.6 130.4 465.7 384.6
Marketing and
selling 73.2 76.4 223.1 222.5
General and
administrative 46.2 42.1 134.3 119.1
Loss of affiliates,
net 4.1 11.3 24.7 39.5
Legal Assessment 157.0 - 157.0 -
Total operating
expenses 527.4 333.3 1,227.9 974.0
Operating income 70.9 233.7 566.4 672.3
Other income/
(expense):
Interest and other
income 17.5 16.8 51.4 48.0
Interest expense,
net (0.1) (1.2) (0.8) (5.2)
Total other
income/(expense) 17.4 15.6 50.6 42.8
Income before
income taxes 88.3 249.3 617.0 715.1
Provision for
income taxes 4.5 69.8 152.4 213.3
Net income $83.8 $179.5 $464.6 $501.8
Earnings per
share:
Primary earnings
per share $0.31 $0.64 $1.68 $1.78
Fully diluted
earnings per
share $0.31 $0.64 $1.68 $1.78
Shares used
in calculation of:
Primary earnings
per share 273.9 279.4 276.1 281.3
Fully diluted
earnings per
share 273.9 280.8 276.1 282.3
Amgen Inc.
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
Sept. 30, Dec. 31,
1997 1996
Assets
Current assets:
Cash and marketable securities $ 1,101.7 $1,077.0
Trade receivables 235.5 225.4
Inventories 110.5 97.4
Other current assets 78.3 102.8
Total current assets 1,526.0 1,502.6
Property, plant and equipment, net 1,111.8 910.5
Other non-current assets 364.6 352.5
Total assets $3,002.4 $2,765.6
Liabilities and Stockholders' Equity
Current liabilities $ 634.0 $ 642.9
Non-current liabilities 129.0 216.4
Stockholders' equity 2,239.4 1,906.3
Total liabilities and stockholders'
equity. $3,002.4 $2,765.6
Shares outstanding 263.2 264.7
CONTACT: Amgen, Thousand Oaks David Kaye David V. Hope (born 14 October 1964), known professionaly as David Kaye, is a Canadian actor who is better known and revered for his work as a voice actor. Career , 805/447-6692 (media) Denise Powell, 805/447-4346 (investors) |
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