Amgen 2001 Annual Report Download - page 28

AMGEN 2001 ANNUAL REPORT
than one month and had effec-
tive interest rates averaging
1.9%. In addition, the
Company has an unsecured
$150 million committed
credit facility with five partic-
ipating banking institutions
that expires on May 28, 2003.
This credit facility supports
the Company’s commer-
cial paper program. As of
December 31, 2001, no
amounts were outstanding
under this credit facility.
The primary objectives for the Company’s fixed
income investment portfolio are liquidity and safety of
principal. Investments are made to achieve the highest
rate of return to the Company, consistent with these two
objectives. The Company’s investment policy limits
investments to certain types of instruments issued by
institutions with investment grade credit ratings and
places restrictions on maturities and concentration by
type and issuer.
The Company believes that existing funds, cash
generated from operations, and existing sources of
debt financing (including the pending issuance of the
Convertible Notes) are adequate to satisfy its working
capital and capital expenditure requirements for the
foreseeable future, as well as to support its stock repur-
chase program and the proposed acquisition of Immunex
Corporation (“Immunex”) (see “Proposed Merger with
Immunex”). However, the Company may raise additional
capital from time to time.
Results of Operations
Product sales
Product sales primarily consist of sales of EPOGEN®
(Epoetin alfa), Aranesp™(darbepoetin alfa), and
NEUPOGEN®(Filgrastim). In 2001, product sales were
$3,511.0 million, an increase of $308.8 million or 10%
over the prior year. Product sales were $3,202.2 million
in 2000, an increase of $159.4 million or 5% over the
prior year. Product sales are influenced by a number of
factors, including underlying demand, wholesaler inven-
tory management practices, and foreign exchange effects.
EPOGEN®/Aranesp™In 2001, the Company received
approval to market Aranesp™in the U.S. (September
2001), most countries in the European Union (“EU”),
Australia, and New Zealand for the treatment of anemia
associated with chronic renal failure, including patients
on dialysis and patients not on dialysis.
Combined EPOGEN®and Aranesp™sales in 2001
were $2,150.0 million, an increase of $187.1 million or
10% over 2000 EPOGEN®
sales. This increase was
primarily due to higher
EPOGEN®demand, which
includes the effect of higher
prices and growth in the U.S.
dialysis patient population,
and to a lesser extent, the
launch of Aranesp™in the U.S.
and Europe. The reported
sales growth was negatively
impacted to a slight degree by
wholesaler inventory changes.
Worldwide Aranesp™sales in
2001 were $41.5 million.
EPOGEN®sales in 2000 were $1,962.9 million, an
increase of $203.8 million or 12% over the prior year.
This increase was primarily due to higher demand, which
was principally driven by growth in the U.S. dialysis
patient population and to a lesser extent, the effect of
higher prices. Sales in 2000 were adversely impacted by
Year 2000-related sales to wholesalers in the fourth quar-
ter of 1999 for which the Company provided extended
payment terms and, the Company believes, by dialysis
provider inventory drawdowns in 2000 of additional
1999 year-end stockpiling. The Company believes
that some of this dialysis provider stockpiling may
have been due to Year 2000 concerns and year-end
contract expirations.
NEUPOGEN®Worldwide NEUPOGEN®sales in 2001
were $1,346.4 million, an increase of $122.7 million
or 10% over the prior year. This increase was primarily
due to world-wide demand growth, which includes the
effect of higher prices in the U.S.
Worldwide NEUPOGEN®sales were $1,223.7 million
in 2000, a decrease of $32.9 million or 3% from the
97 98 99 00 01
Total Assets
($ in millions)
2001 $6,443.1
2000 5,399.6
1999 4,077.6
1998 3,672.2
1997 3,110.2
97 98 99 00 01
EPOGEN®/
AranespTM Sales
($ in millions)
2001 $2,150.0
2000 1,962.9
1999 1,759.1
1998 1,382.0
1997 1,160.7
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