Amgen announces 27 percent increase in earnings per share.

THOUSAND OAKS, Calif.--(BUSINESS WIRE)--Oct. 19, 1995--Amgen (NASDAQ:AMGN) Thursday announced that its earnings per share for the third quarter ending Sept. 30 increased by 27 percent, to 52 cents from 41 cents for the same quarter a year ago.

Net income was up 28 percent, to $145 million from $114 million for the same quarter a year ago, and revenues increased 16 percent to $493 million from $426 million.

Earnings per share increased by 25 percent for the nine-month period ending Sept. 30, to $1.40 from $1.12 for the same period a year ago. Net income also increased by 25 percent for the nine-month period, to $392 million from $315 million, and revenues were up 18 percent, to $1.426 billion from $1.205 billion.

To develop its expanding product pipeline, Amgen increased its investment in research and development to a total of 23 percent of sales, an increase of 29 percent over the same quarter a year ago, to $106 million from $82 million.

For the third quarter, sales of EPOGEN (R) (Epoetin alfa) increased 23 percent, to $230 million from $187 million for the same quarter a year ago. Worldwide sales of NEUPOGEN (R) (Filgrastim) increased by 7 percent, to $230 million from $215 million. U.S. NEUPOGEN sales increased to $164 million from $160 million, while international NEUPOGEN sales increased to $67 million from $55 million for the same quarter a year ago.

These results have been influenced by extensive wholesaler purchasing just before the July 4 holiday which created an artificially high inventory level at the end of the second quarter, suppressing the increase in domestic third-quarter sales of NEUPOGEN (R). While domestic NEUPOGEN growth has been slowing over the past several years, underlying demand in the third quarter remained essentially the same as that in the second quarter.

"For some time, health care providers have been encountering increasing cost reduction pressure because of managed care and guidelines, and these pressures are intensifying. We continue to invest heavily in defining both NEUPOGEN's benefits in oncology as well as its future role in a variety of new clinical settings and market opportunities, including HIV and other infectious diseases," said Gordon Binder, chairman and chief executive officer.

PRODUCT DEVELOPMENT

Several significant product development events also occurred during the quarter. These include a preliminary analysis of results of a Phase III clinical trial of NEUPOGEN in Community Acquired Pneumonia (CAP).

The 756-patient study of NEUPOGEN with antibiotics compared with antibiotic therapy alone in patients with moderate pneumonia did not meet its primary endpoint of time to resolution of morbidity (TRM). It did, however, demonstrate a statistically significant benefit in patients receiving NEUPOGEN in eliminating chest X-ray signs of pneumonia.

The trial also demonstrated that in those patients receiving NEUPOGEN, there were statistically significant clinical benefits relating to two serious complications of pneumonia: reducing the incidence of end organ failures and reducing the incidence of Adult Respiratory Distress Syndrome (ARDS). ARDS is a respiratory emergency in which the patient has respiratory insufficiency or failure.

This trial did not show significant benefit in other secondary endpoints. In a recent, small Phase I/II study in patients with severe pneumonia, patients taking NEUPOGEN in combination with antibiotics demonstrated a mortality benefit over those taking antibiotics alone.

Consistent with the results of this trial and numerous preclinical studies, a subset of patients in the Phase III trial with more severe pneumonia also demonstrated a mortality benefit, although there was no mortality difference for all patients.

Amgen said it will initiate a Phase III clinical trial this winter to confirm mortality benefit in patients with severe pneumonia and to more clearly delineate the benefits of NEUPOGEN in this seriously ill patient population, which, in this country alone, may number more than 150,000.

In addition, Amgen said that the FDA's Biological Response Modifiers Advisory Committee has scheduled a November 13 meeting at which the agency will review Amgen's request to expand the package insert for NEUPOGEN to include mobilization of peripheral blood progenitor cells (PBPC). In comparison with autologous bone marrow, PBPC is believed to provide more rapid neutrophil and platelet recovery following myeloablative or myelosuppressive chemotherapy.

The Company also has filed for regulatory approval in Europe to include the use of NEUPOGEN (R) in treating neutropenia due to myelosuppressive medications in patients with HIV infection.

In developments relating to two late-stage pipeline products, Amgen announced that it has begun Phase III trials of Brain- Derived Neurotrophic Factor (BDNF) in Amyotrophic Lateral Sclerosis (ALS) and of Stem Cell Factor (SCF) in combination with NEUPOGEN for mobilizing progenitor cells in the treatment of cancer. Amgen also said it will file a Product License Application (PLA) for INFERGEN (R) to treat chronic hepatitis C.

Amgen is a global biotechnology company that discovers, develops, manufactures and markets human therapeutics based on advanced cellular and molecular biology. -0-

                              AMGEN INC.
             Condensed Consolidated Statements of Operations
                  (In millions, except per-share data)
                             (Unaudited)

                               Three months ended  Nine months ended
                                    Sept. 30,          Sept. 30,
                                  1995    1994      1995      1994
Revenues:
Product sales                    $460.6  $401.7  $1,334.4  $1,136.0
Corporate partner revenues         23.8    16.9      65.1      49.7
Royalty income                      8.9     7.7      26.9      19.3
Total revenues                    493.3   426.3   1,426.4   1,205.0

Operating expenses:
Cost of sales                      64.1    59.1     207.1     176.8
Research and development          105.5    81.7     327.7     235.6
Marketing and selling              69.1    61.9     197.8     174.7
General and administrative         37.6    31.9     106.8      90.4
Loss of affiliates, net            15.2     9.8      41.2      25.6
Total operating expenses          291.5   244.4     880.6     703.1

Operating income                  201.8   181.9     545.8     501.9

Other income/(expense):
Interest and other income          15.4     6.8      46.7      16.0
Interest expense, net              (3.6)   (3.3)    (11.2)     (8.7)
Total other income/(expense)       11.8     3.5      35.5       7.3

Income before income taxes        213.6   185.4     581.3     509.2

Provision for income taxes         67.8    71.4     189.2     194.3

Net income                       $145.8  $114.0  $  392.1  $  314.9

Earnings per share:
Primary earnings per share       $ 0.52  $ 0.41  $   1.40  $   1.12
Fully diluted earnings per share $ 0.51  $ 0.41  $   1.38  $   1.12

Shares used in calculation of:
Primary earnings per share        281.8   278.5     280.2     280.0
Fully diluted earnings per share  283.2   279.1     283.8     281.9

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                              AMGEN INC.
                 Condensed Consolidated Balance Sheets
                            (In millions)
                             (Unaudited)

                                         Sept. 30,    Dec. 31,
                                           1995         1994
ASSETS
Current assets:
Cash and marketable securities          $  991.7     $  696.7
Trade receivables                          205.3        194.7
Inventories                                 85.8         98.0
Deferred tax assets, net                    70.2         70.2
Other current assets                        67.0         56.0
Total current assets                     1,420.0      1,115.6
Property, plant and equipment, net         707.9        665.3
Other non-current assets                   220.3        213.2
Total assets                            $2,348.2     $1,994.1

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                     $  596.2     $  536.4
Long-term debt                             177.2        183.4
Stockholders' equity                     1,574.8      1,274.3
Total liabilities and stockholders'
 equity                                 $2,348.2     $1,994.1

Shares outstanding                         266.0        264.7

CONTACT: Amgen, Thousand Oaks

David Kaye, 805/447-6692 (media)

Sarah H. Crampton, 805/447-1659 (investors)