Amgen 2000 Annual Report Download - page 21

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Other Product Sales Other product sales primarily consist of
INFERGEN®(Interferon alfacon-1). INFERGEN®sales were $14.5 mil-
lion in 2000, a decrease of $11.7 million or 45% from the prior
year. In 1999, INFERGEN®sales were $26.2 million, an increase of
$10.4 million or 66% over the prior year. INFERGEN®was launched
in October 1997 for the treatment of chronic hepatitis C virus
infection. There are other treatments, including combination ther-
apy, for this infection against which INFERGEN®competes. The
Company cannot predict the extent to which it will maintain its
share or further penetrate this market.
Corporate Partner Revenues
In 2000, corporate partner revenues increased $84.8 million or 53%
over the prior year. In 1999, corporate partner revenues increased
$33.5 million or 26% over the prior year. These increases were pri-
marily due to amounts earned from Kirin-Amgen, Inc. related to the
development program for ARANESPTM (darbepoetin alfa), the
Company’s novel erythropoiesis stimulating protein.
Cost of Sales
Cost of sales as a percentage of product sales was 12.8%, 13.2%
and 13.7% for 2000, 1999 and 1998, respectively. The decreases
in these percentages were primarily due to increased manufactur-
ing efficiencies.
Research and Development
In 2000, research and development expenses increased $22.2
million or 3% over the prior year. This increase was primarily due
to higher staff-related costs necessary to support ongoing
research and product development activities and higher clinical
trial costs. These increases were substantially offset by a reduction
in clinical manufacturing and product licensing costs. In 1999,
research and development expenses increased $159.5 million or
24% over the prior year. This increase was primarily due to product
licensing and development costs related to the collaboration with
PRAECIS PHARMACEUTICALS INCORPORATED and higher staff-
related costs necessary to support ongoing research and product
development activities.
24
Management’s Discussion and Analysis
of Financial Condition and Results of Operations
Total Product Sales
($ in millions)
98
00 $3,202.2
99 $3,042.8
98 $2,514.4
97 $2,219.8
96 $2,088.2
99 009796
NEUPOGEN® Sales
($ in millions)
98
00 $1,223.7
99 $1,256.6
98 $1,116.6
97 $1,055.7
96 $1,016.3
99 009796