Amgen 2012 Annual Report Download - page 72

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65
The increases in global XGEVA® and Prolia® sales for 2012 and 2011 were driven primarily by unit growth.
Sequentially, global XGEVA® and Prolia® sales increased 7% and 40%, respectively, in the quarter ended December 31,
2012, compared with the quarter ended September 30, 2012.
XGEVA® also faces increased competition. See Item 1. Business — Marketed Products.
Other products
Other product sales by geographic region were as follows (dollar amounts in millions):
2012 Change 2011 Change 2010
Sensipar®—U.S. $ 639 23% $ 518 13% $ 459
Sensipar®/Mimpara®—ROW 311 7% 290 14% 255
Vectibix®—U.S. 122 —% 122 6% 115
Vectibix®—ROW 237 19% 200 16% 173
Nplate®—U.S. 214 31% 163 26% 129
Nplate®—ROW 154 15% 134 34% 100
Other—ROW 173 * 58 N/A —
Total other product sales $ 1,850 25% $ 1,485 21% $ 1,231
Total U.S.— other products $ 975 21% $ 803 14% $ 703
Total ROW— other products 875 28% 682 29% 528
Total other product sales $ 1,850 25% $ 1,485 21% $ 1,231
* Change in excess of 100%
Operating expenses
Operating expenses were as follows (dollar amounts in millions):
2012 Change 2011 Change 2010
Operating expenses:
Cost of sales (excludes amortization of
certain acquired intangible assets
presented separately) $ 2,918 20 % $ 2,427 9% $ 2,220
% of product sales 17.5% 15.9% 15.1%
Research and development $ 3,380 7 % $ 3,167 9% $ 2,894
% of product sales 20.3% 20.7% 19.7%
Selling, general and administrative $ 4,801 7 % $ 4,486 13% $ 3,983
% of product sales 28.9% 29.3% 27.2%
Amortization of certain acquired intangible
assets $ 294 — % $ 294 —% $ 294
Other $ 295 (67)% $ 896 * $ 117
* Change in excess of 100%
Cost of sales
Cost of sales, which excludes the amortization of certain acquired intangible assets, increased to 17.5% of product sales for
2012, driven primarily by product mix and the Puerto Rico excise tax. Excluding the impacts of the Puerto Rico excise tax, cost
of sales would have been 15.5% and 14.5% of product sales for 2012 and 2011, respectively.
Cost of sales increased to 15.9% of product sales for 2011. Excluding the impact of the Puerto Rico excise tax, cost of sales
would have been 14.5% of product sales compared with 15.1% for 2010. The decrease was driven by improved productivity, offset
partially by certain expenses related to actions to improve cost efficiencies.