Amgen 2011 Annual Report Download - page 3

Amgen 2011 Annual Report 1
Dear Stockholders,
We’re proud of what Amgen accomplished in
2011—a solid year—and the outlook for 2012 is
even stronger. In the fi rst half of 2011, we outlined
our strategy and long-term growth objectives
at our business review meeting with investors.
We also discussed our plans designed to return
signifi cant capital to you, our stockholders. Through
strong execution in 2011, Amgen delivered solid
operating performance for the year and made
good progress toward our objectives.
Despite another challenging year for our industry,
we grew revenues 4 percent and increased
adjusted earnings per share* 2 percent, and we
had approximately $5.1 billion in operating cash
fl ow. We ended 2011 energized by our momentum
and confi dent that 2012 will be a year to accelerate
Amgen’s growth. This is also a time of planned
transition as a new generation of leaders prepares
to take Amgen forward.
We know it won’t be easy to deliver on our mission
to serve patients: We still face global macroeconomic
pressures and new regulatory and reimbursement
challenges. However, Amgen is uniquely well
equipped to meet those challenges and provide
innovative therapies for more patients.
We Delivered in 2011
Amgen’s 4 percent revenue increase in 2011 was
driven by the solid performance of Enbrel® and
Neulasta®/NEUPOGEN®
, the strength of new
products Prolia® and XGEVA®
, and the success
of Nplate®
, Sensipar®/Mimpara® , and Vectibix® .
That growth was partially offset by the decline
in sales of Aranesp® and EPOGEN®
.
We were very pleased to receive marketing approval
for XGEVA® in the European Union in 2011. We
entered the market with a novel therapy to treat
an important medical need—the prevention of
skeletal-related events in adults with bone metastases
from solid tumors—and we have seen growth
in the number of patients being treated in the
European Union as well as in the United States.
We continue to seek new approvals and indications
for this important medicine.
Also in 2011, we recorded our first full year of
sales of Prolia®, which achieved signifi cant growth.
Combined sales of Prolia® and XGEVA® exceeded
$500 million in 2011. Amgen will continue working
to ensure that these innovative medicines reach
the right patients.
Our Pipeline Is Advancing
We are committed to making critical investments
in Amgen’s pipeline—one of the best in our industry.
We’re focused on advancing six later-stage (phase 2
and 3) programs for the treatment of serious illnesses
such as melanoma, ovarian cancer, pancreatic
cancer, psoriasis, asthma, cardiovascular disease,
Letter to
Stockholders
* “Adjusted” earnings per share is a non-GAAP fi nancial measure. See page 12 for reconciliations to U.S. generally accepted accounting principles (GAAP).
Kevin W. Sharer, Chairman and
Chief Executive Officer
Robert A. Bradway, President and
Chief Operating Officer
Our Strategic Approach
• Bring medicines to market that advance
treatment of serious illness
• Make signifi cant and sustained investment
in R&D and participate in a wide range of
therapeutic areas
• Reliably manufacture products with the
highest quality and lowest cost
• Expand our operating footprint into emerging
markets and Japan
• Manage our cost structure to grow earnings
ahead of revenues
• Use capital wisely, maintain a strong balance
sheet, and return signifi cant capital to stockholders
• Sustain a strong social architecture that
attracts the best staff and enables them to
perform at the highest levels