Amgen 2000 Annual Report Download - page 20

Results of Operations
Product Sales
Product sales were $3,202.2 million in 2000, an increase of $159.4
million or 5% over the prior year. In 1999, product sales were
$3,042.8 million, an increase of $528.4 million or 21% over the
prior year. Quarterly product sales are influenced by a number of
factors, including underlying demand, wholesaler inventory man-
agement practices and foreign exchange effects.
EPOGEN®(Epoetin alfa) EPOGEN®sales were $1,962.9 million in
2000, an increase of $203.8 million or 12% over the prior year.
This increase was primarily due to higher demand, which was prin-
cipally driven by growth in the U.S. dialysis patient population and
to a lesser extent, the effect of higher prices. Sales in 2000 were
adversely impacted by Year 2000-related sales to wholesalers in
the fourth quarter of 1999 for which the Company provided
extended payment terms and, the Company believes, by dialysis
provider inventory drawdowns in 2000 of additional 1999 year-end
stockpiling. The Company believes that some of this dialysis
provider stockpiling may have been due to Year 2000 concerns
and year-end contract expirations. In 1999, EPOGEN®sales were
$1,759.1 million, an increase of $377.1 million or 27% over the
prior year. This increase was primarily due to higher demand, prin-
cipally driven by the administration of higher doses and growth in
the U.S. dialysis patient population. The administration of higher
doses of EPOGEN®was principally due to dialysis providers man-
aging more patients into the hematocrit range of 33 to 36 percent
as recommended by the Dialysis Outcomes Quality Initiative, as
well as the use of hemoglobin instead of hematocrit to measure
red blood cell volume.
NEUPOGEN®(Filgrastim) Worldwide NEUPOGEN®sales were
$1,223.7 million in 2000, a decrease of $32.9 million or 3% from
the prior year. This decrease was primarily due to the adverse
impact of wholesaler buying patterns, including Year 2000-related
sales to wholesalers in the fourth quarter of 1999 for which the
Company provided extended payment terms, as well as adverse
foreign exchange effects. The Company believes these factors
were partially offset by a mid-single digit rate increase in demand,
which includes the effect of higher prices in the U.S. In 1999,
worldwide NEUPOGEN®sales were $1,256.6 million, an increase of
$140.0 million or 13% over the prior year. This increase was pri-
marily due to higher demand, which includes the effect of higher
prices in the U.S., and the impact of approximately $29 million of
Year 2000-related sales to wholesalers in the fourth quarter of
1999 for which the Company provided extended payment terms.
23
Management’s Discussion and Analysis
of Financial Condition and Results of Operations
Tot al Assets
($ in millions)
98
00 $5,399.6
99 $4,077.6
98 $3,672.2
97 $3,110.2
96 $2,765.6
99 009796
EPOGEN® Sales
($ in millions)
98
00 $1,962.9
99 $1,759.1
98 $1,382.0
97 $1,160.7
96 $1,071.9
99 009796