Amgen 2004 Annual Report Download - page 32

Financial review
2004 $8,279
2003 6,764
2002 4,497
02 03 04
Domestic
product sales
($ in millions )
2004 $1,698
2003 1,104
2002 494
02 03 04
International
product sales
($ in millions )
2004 $2,028
2003 1,655
2002 1,117
02 03 04
Research and
development expenses
($ in millions )
Revenue growth Amgen delivered strong business
performance in 2004, achieving signifi cant sales
and earnings growth while continuing to maintain
robust investment in research and development,
new manufacturing facilities and product marketing.
In 2004, total revenues reached a record $10.6
billion, a 26 percent increase over 2003.
Total
2004 product sales grew 27 percent over the
prior year to $10.0 billion, as we continued to build
strong franchises in nephrology, supportive cancer
care, and infl 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-induced anemia;
ENBREL
®
(etanercept), Amgen’s leading infl ammation
biologic used in the treatment of diseases such as
rheumatoid arthritis, psoriatic arthritis and psoriasis;
and Neulasta®
(pegfi lgrastim), Amgen’s once-per-cycle
product for decreasing the incidence of neutropenic
infections associated with many types of cancer chemo-
therapy treatments. U.S. sales for Aranesp®
and
Neulasta®
were impacted by higher incentives earned
by customers under performance-based contracts.
U.S. product sales increased 22 percent to $8.3
billion, representing 83 percent of Amgen’s total
product sales in 2004. Amgen’s international product
sales increased 54 percent to $1.7 billion in 2004.
International product sales growth during 2004
benefi ted by $164 million from foreign currency
rate changes. Our international growth was driven
primarily by additional market penetration of our
products in Europe.
Total sales of EPOGEN®
(Epoetin alfa), Amgen’s
anemia therapy for patients with chronic renal failure
on dialysis, increased 7 percent to $2.6 billion.
EPOGEN® continued to have solid sales growth
after 15 years on the market. This sales growth was
primarily driven by demand, which refl ects dialysis
patient population growth and a continued focus
in the renal community on patient outcomes
and, to a lesser extent, by increases in wholesaler
inventory levels.
Worldwide sales of Aranesp®
increased 60 percent
in 2004 to $2.5 billion, driven by demand, which
benefi ted from market share gains in both oncology
and nephrology and market growth. U.S. sales
growth was impacted by higher incentives earned
by customers attaining higher sales volumes and
growth under performance-based contracts.
Total combined worldwide sales of Neulasta®
and
NEUPOGEN® (Filgrastim), Amgen’s products used to
decrease the incidence of many types of chemotherapy-
related infections, increased 16 percent in 2004 to
$2.9 billion. Combined sales growth for Neulasta®
and NEUPOGEN®
was driven by worldwide
Amgen 2004 Annual Report page 30