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Amgen Inc.
One Amgen Center Drive
Thousand Oaks, CA 91320-1799
www.amgen.com
© 2005 Amgen Inc. All rights reserved.
MC25288 800M/3-05
Inspired science. Defining moments.
Amgen 2004 Annual Report

Table of contents

  • Page 1
    Inspired science. Defining moments. Amgen 2004 Annual Report

  • Page 2
    ... from the early 1980s, examines X-ray film to identify the gene coding for human erythropoietin, the discovery that would lead to the production of EPOGEN® (Epoetin alfa), Amgen's first medicine. Facing page One of Amgen's research labs at the company's headquarters in Thousand Oaks, California.

  • Page 3
    ..., Amgen celebrates its 25th anniversary. When we began in 1980, no one was sure what viable products might ultimately emerge from the exciting new science called biotechnology. But we believed that biotechnology had the power to restore health, even save lives. A quarter century later, we've come...

  • Page 4
    Inspired science. Strands of life Pictured above is a strand of DNA (deoxyribonucleic acid), the building block of life - and of Amgen's medicines.

  • Page 5
    ... to produce a therapeutically effective form of human erythropoietin. Injected EPOGEN® stimulates red blood cell production in the same way as naturally occurring erythropoietin produced by the kidneys. (For more on the science behind EPOGEN ®, please see page 14.) Amgen 2004 Annual Report page 3

  • Page 6
    ... The science Amgen scientists asked what would happen if more carbohydrates were added to the EPOGEN ® molecule. The result was Aranesp®, a new molecule for anemia treatment with a half-life in the body that is approximately three times longer than that of EPOGEN ®. Amgen 2004 Annual Report page...

  • Page 7
    ...ght cancer by providing new therapies to attack the disease itself. "We're committed to helping cancer patients by advancing our oncology therapeutics pipeline," says Jim Daly, vice president and general manager of Amgen's U.S. Oncology business. Lea Age 40 Sydney, Australia Lea is passionate about...

  • Page 8
    ...Whistler to enjoy the hiking and skiing that Whistler Mountain offers. But in 1997, at age 45, Marie started to experience stiffness and pain in her joints and was diagnosed with rheumatoid arthritis. Within three years, she was forced to give up most of her favorite outdoor activities; she even had...

  • Page 9
    ...generally well-tolerated and effective," says Scott Burton, senior director of Sales and Marketing for ENBREL®. With ENBREL®, approved by the U.S. Food and Drug Administration (FDA) in 2004 for use in chronic moderate to severe plaque psoriasis, Amgen is attempting to fill that need. In one study...

  • Page 10
    Amgen 2004 Annual Report page 8

  • Page 11
    ...Geoffrey Block, M.D., director of Clinical Research at Denver Nephrologists, PC and the lead author of a 2004 New England Journal of Medicine article that published pivotal Sensipar ® data. "There is a very large unmet need to treat secondary hyperparathyroidism in kidney disease patients- if it is...

  • Page 12
    ... Psoriasis Rheumatoid arthritis Osteoarthritis AMG 386 AMG 531 ENBREL® ENBREL ® AMG 706 AMG 951 ENBREL® ENBREL® Aranesp® (darbepoetin alfa) Kineret® (anakinra) NEUPOGEN® (Filgrastim) Kineret® Neulasta ® (pegfilgrastim) Panitumumab Kepivance (palifermin) ™ Kepivance™ Amgen...

  • Page 13
    ...-stage renal disease Leptin Leptin Sensipar® (cinacalcet HCl) Molecule AMG 403 AMG 517 Disease/condition Sensipar® Sensipar ® Pain Pain Sensipar ® Preclinical studies collect data to show that a molecule is reasonably safe for use in initial small-scale clinical trials. Phase 1 clinical...

  • Page 14
    Defining moments. Documenting milestones Pictured above are patents for EPOGEN® (Epoetin alfa) and NEUPOGEN® (Filgrastim), Amgen's first two medicines.

  • Page 15
    ... Amgen's history: the 1980 meeting in Johnson's backyard in Palo Alto, California, at which Rathmann agreed to be Amgen's CEO. The moment George Rathmann excelled at both science and business and is now regarded as one of the founding fathers of the biotechnology industry. Amgen 2004 Annual Report...

  • Page 16
    ... and the subsequent development of EPOGEN ® were the pivotal events in Amgen's transition from an unproven start-up to a successful business. Beyond these defining moments, the discoveries continue to unlock new potential to treat diseases more effectively. Amgen 2004 Annual Report page 14

  • Page 17
    ... new cell culture production manufacturing facility near Boulder, Colorado, is scheduled to be operational in 2005. Pictured there, left to right, are Lisa Baker, senior manager, Manufacturing; Jim Skrine, senior director, Quality; Ellen Johnson, engineer; and Dennis Fenton, executive vice president...

  • Page 18
    ... experience - one that proved valuable in 2004 with the acquisition of the South San Francisco-based research firm Tularik Inc. Amgen continues Immunex's heritage of scientific excellence in the Seattle area. In early 2004, Amgen opened its Seattle Helix campus, which contains lab and office...

  • Page 19
    ... Safety Assessment; Paul Pearson, vice president, Pharmacokinetics and Drug Metabolism; Chris Fibiger, vice president and global head, Neuroscience; Susan Hershenson, vice president, Pharmaceutics; and Glenn Begley, vice president, Hematology and Oncology Research. Amgen 2004 Annual Report page 17

  • Page 20
    ... AMGen (Applied ( Molecular Genetics Inc.), headquartered in Thousand Oaks, California, on April 8 George B. Rathmann named president and chief executive officer 1981 Amgen raises $19.4 million in venture capital - enough to hire a team of scientists 1982 Gordon M. Binder joins Amgen as...

  • Page 21
    ... myelosuppressive therapy Amgen establishes the Amgen Foundation for charitable giving Amgen opens subsidiaries in Australia and Canada NEUPOGEN® the treatment of anemia in adult patients with chronic renal failure who are on dialysis Immunex discovers and files a patent application on a new TNF...

  • Page 22
    1992 Kevin W. Sharer named president and chief operating officer 1993 Regulators in Australia, Canada and Europe approve NEUPOGEN® 1994 FDA approves NEUPOGEN® 1995 FDA approves NEUPOGEN® 1996 Regulators in Australia and Canada approve NEUPOGEN® 1997 FDA approves INFERGEN® 1998 FDA ...

  • Page 23
    ... rheumatoid arthritis FDA approves EPOGEN® for the treatment of chronic moderate to severe plaque psoriasis in adults Amgen expands operations in Europe to include 10 new Central and Eastern European countries Amgen acquires South San Francisco-based Tularik Inc. FDA approves Kepivance™ Amgen...

  • Page 24
    Innovators Pictured with CEO Kevin Sharer are just a few of the people at Amgen who are driving innovation throughout the organization to better meet the needs of patients. Amgen 2004 Annual Report page 22

  • Page 25
    ...time . From left to right: Fabrizio Bonanni, senior vice president, Manufacturing; David Parkinson, vice president, Global Clinical Development; Leslie Mirani, senior director of U.S. Nephrology Sales; Kevin Sharer, chairman and chief executive officer; Diana McKenzie, senior director, Information...

  • Page 26
    ...to look outside our company for new ideas and products and to place big bets. Fighting the not-invented-here mindset is a challenge for all good, proud and successful firms. However, we know that only a tiny fraction of the scientists in the world work at Amgen. Good things are happening all around...

  • Page 27
    ... of the human genome was proceeding, Gordon Binder, Amgen's second CEO, and I decided to fund the development of a small-molecule capability to complement our large-molecule expertise. This work is now largely done and we are one of the few companies, if not the only one, with access to and...

  • Page 28
    Amgen 2004 Annual Report page 26

  • Page 29
    ..., customer service associate Volunteering at a food bank in Boulder, Colorado, from left to right, Terry Quirk, site security manager for Amgen Colorado, and Hunyen Lee, engineering project manager Amgen acquires South San Francisco-based Tularik Inc., a pioneer in drug discovery related to cell...

  • Page 30
    ... statement of operations data (In millions, except per share data ) Years ended December 31, 2004 2003 2002 Revenues: Product sales (1) Other revenues Total revenues Operating expenses: Cost of sales (excludes amortization of acquired intangible assets presented below) Research and development...

  • Page 31
    ... outstanding at December 31, 2004 not repurchased on March 2, 2005 was classified as long-term debt. See Note 4 to the Consolidated Financial Statements included in our 2004 Annual Report on Form 10-K for further discussion of the terms of the Convertible Notes. Amgen 2004 Annual Report page 29

  • Page 32
    ... to build strong franchises in nephrology, supportive cancer care, and inï¬,ammatory disease. Worldwide sales growth in 2004 was principally driven by demand for Aranesp® (darbepoetin alfa), Amgen's latest product for the treatment of anemia associated with chronic kidney disease and chemotherapy...

  • Page 33
    ... ($ in millions ) Capital expenditures ($ in millions ) Amgen staff demand for Neulasta®. Worldwide sales of Neulasta® increased 39 percent in 2004 primarily driven by demand, which benefited from new clinical data demonstrating the value of first-cycle use. U.S. sales growth was impacted by...

  • Page 34
    ...-stage biotechnology companies with insight into research innovations that may pave the way for future collaborations. In 2004, Amgen invested $1.3 billion in capital projects. The investment related primarily to the Thousand Oaks site expansion, the new ENBREL® manufacturing plant in Rhode Island...

  • Page 35
    ... Amgen Foundation contribution Legal settlement Tax effects of the above adjustments "Adjusted" earnings per share 2004 $1.81 2003 $1.69 (1) To exclude the non-cash expense associated with writing off the acquired in-process research and development ("IPR&D") related to the Tularik acquisition...

  • Page 36
    ... General Counsel and Secretary Kevin W. Sharer Senior Vice President and Site Leader, Amgen San Francisco Executive Vice President, Global Commercial Operations Chairman of the Board, Chief Executive Officer and President Stockholder Information Corporate Office One Amgen Center Drive Thousand...

  • Page 37
    Amgen leaders past and present, from left to right, current CEO Kevin Sharer, founder Franklin "Pitch" Johnson, former CEO Gordon Binder, former CEO George Rathmann (seated) and founder Bill Bowes.

  • Page 38
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