Amgen 2012 Annual Report Download - page 67

60
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Forward-looking statements
This report and other documents we file with the SEC contain forward-looking statements that are based on current
expectations, estimates, forecasts and projections about us, our future performance, our business or others on our behalf, our beliefs
and our management’s assumptions. In addition, we, or others on our behalf, may make forward-looking statements in press
releases or written statements, or in our communications and discussions with investors and analysts in the normal course of
business through meetings, webcasts, phone calls and conference calls. Such words as “expect,” “anticipate,” “outlook,” “could,”
“target,” “project,” “intend,” “plan,” “believe,” “seek,” “estimate,” “should,” “may,” “assume” and “continue,” as well as variations
of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees
of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. We describe our respective
risks, uncertainties and assumptions that could affect the outcome or results of operations in Item 1A. Risk Factors. We have based
our forward-looking statements on our management’s beliefs and assumptions based on information available to our management
at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed,
implied or forecast by our forward-looking statements. Reference is made in particular to forward-looking statements regarding
product sales, regulatory activities, clinical trial results, reimbursement, expenses, earnings per share (EPS), liquidity and capital
resources, trends and planned dividends and stock repurchases. Except as required under the federal securities laws and the rules
and regulations of the SEC, we do not have any intention or obligation to update publicly any forward-looking statements after
the distribution of this report, whether as a result of new information, future events, changes in assumptions or otherwise.
Overview
The following management’s discussion and analysis (MD&A) is intended to assist the reader in understanding Amgen’s
business. MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements
and accompanying notes. Our results of operations discussed in MD&A are presented in conformity with accounting principles
generally accepted in the United States (GAAP).
We are a global biotechnology pioneer that discovers, develops, manufactures and delivers innovative human therapeutics.
Our medicines help millions of patients in the fight against cancer, kidney disease, RA, bone disease and other serious illnesses.
We operate in one business segment: human therapeutics. Therefore, our results of operations are discussed on a consolidated
basis.
We earn revenues and income and generate cash primarily from sales of human therapeutic products in the areas of supportive
cancer care, inflammation, nephrology and bone disease. Our principal products include Neulasta®, NEUPOGEN®, ENBREL,
Aranesp®, EPOGEN®, XGEVA® and Prolia®. For additional information about our products, their approved indications and where
they are marketed, see Item 1. Business — Marketed Products.
In 2012, we had several notable accomplishments, including achieving 11% revenue growth driven by strong performance
across the portfolio. Product sales grew 9% in the United States and 7% in the ROW. We also continued paying quarterly dividends
in 2012, and in December, we declared a dividend of $0.47 per share of common stock payable in March 2013, representing a
31% increase over the quarterly dividend paid in each of the past four quarters. Additionally, we repurchased 62 million shares of
our common stock at an aggregate cost of $4.7 billion in 2012. Under our $10 billion authorized stock repurchase program
announced in October 2011, we have repurchased a total of 146 million shares of our common stock for an aggregate cost of $9.7
billion at an average price of $66.37. Finally, we made significant advances in our product pipeline in 2012 including advancing
AMG 145, brodalumab, romosozumab and rilotumumab to phase 3 clinical trials.
We enter 2013 with various opportunities to continue growing our business. We believe the currently approved indications
for XGEVA® and Prolia® represent significant commercial opportunities. Longer-term growth may also be achieved by the
successful development of our later stage pipeline, by expansion into emerging markets and Japan, and through strategic business
development opportunities, such as our acquisitions of Micromet and MN in 2012. Our continued focus on increasing cost
efficiencies will assist in providing the necessary resources to fund many of these future opportunities.
Our business will, however, continue to face various challenges. Certain of our products will face increasing competitive
pressure as a result of competitive product launches. In the United States, ENBREL, EPOGEN® and XGEVA®, in particular, will
be facing increased competition. Additionally, over the next several years, starting in 2013, certain of the existing patents on our
principal products — including NEUPOGEN®, EPOGEN® and Aranesp® — will expire and, as a result, we expect to face increasing
competition from biosimilars. For additional information, including with regard to the expiration of the patents for various products,
see Item 1. Business — Marketed Products.