Amgen 2010 Annual Report Download - page 88

• competitive products, including biosimilars;
• patent expirations and our ability to obtain and defend our patent and other intellectual property rights;
• fluctuations in foreign currency exchange rates;
• adequacy of product supply and distribution;
• effectiveness of our marketing efforts, including those conducted under collaboration agreements;
• concentration of customer purchasing power; and
• acquisitions.
Our U.S. product sales are also subject to certain other influences throughout the year, including wholesaler and
end-user buying patterns (eg, holiday-driven wholesaler and end-user stocking, contract-driven buying and patients
purchasing products later in the year after satisfying their annual insurance deductibles). Such factors can result in higher
demand for our products and/or higher wholesaler inventory levels and, therefore, higher product sales for a given three-
month period, generally followed by a reduction in demand and/or a drawdown in wholesaler inventories and a
corresponding decline in product sales in the subsequent three-month period. For example, sales of our products in the
United States for the three months ended March 31 have been slightly lower relative to the immediately preceding three-
month period, which we believe to be due, in part, to certain of these factors. While this can result in variability in
quarterly product sales on a sequential basis, these effects have generally not been significant when comparing product
sales in the three months ended March 31 with product sales in the corresponding period of the prior year.
In addition, general economic conditions may affect, or in some cases amplify, certain of these factors with a
corresponding impact on our product sales. (See Item 1. Business — Marketed Products for a discussion of our
principal products and their approved indications.)
Aranesp»
For the years ended December 31, 2010, 2009 and 2008, total Aranesp»sales by geographic region were as
follows (dollar amounts in millions):
2010 Change 2009 Change 2008
Aranesp»— U.S. ................................ $1,103 (12)% $1,251 (24)% $1,651
Aranesp»— International........................... 1,383 (1)% 1,401 (6)% 1,486
Total Aranesp»............................... $2,486 (6)% $2,652 (15)% $3,137
The decrease in U.S. Aranesp»sales for 2010 was due primarily to a decline in unit demand, reflecting an
overall decline in the segment. The decrease in international Aranesp»sales for 2010 was due primarily to a
decrease in demand.
U.S. sales of Aranesp»for 2008 benefited from certain changes in accounting estimates related to product sales
return reserves. Excluding the positive impact of these changes in accounting estimates, the decrease in
U.S. Aranesp»sales of approximately 21% for 2009 was due primarily to a decline in unit demand and a low
single-digit percentage point decrease in the average net sales price. The decline in unit demand reflects the
negative impact, primarily in the supportive cancer care setting, of a product safety-related label change in August
2008 as well as an overall decline in the segment and a slight loss of segment share. Excluding an $85 million
unfavorable foreign exchange impact, international Aranesp»sales for 2009 remained unchanged.
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