Amgen 2004 Annual Report Download - page 34

Tularik, and, to a lesser extent, higher clinical manu-
facturing and key clinical trials costs including the
commencement of large-scale phase 3 trials for
AMG 162, Amgen’s investigational therapy for bone
loss. Amgen had approximately 35,000 patients
enrolled in clinical trials at year-end 2004.
In
2004, we acquired Tularik, a pioneer in drug
discovery related to cell signaling and the control of
gene expression. The acquisition added several clinical
development candidates to our pipeline, more than
doubled our number of metabolic research and pre-
clinical programs, and further strengthened our
research capabilities. Also in 2004, we announced
the formation of Amgen Ventures, a $100 million
corporate venture capital fund designed to provide
Amgen access to early-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, and the Puerto
Rico manufacturing expansion.
Stockholder value Amgen seeks to build long-term
value for its stockholders by preserving an appropriate
balance between near-term earnings growth and
ongoing reinvestment in basic research, pipeline
development, and support of marketed products.
Repurchases under our stock repurchase program
refl ect, in part, our confi dence in the long-term
value of Amgen common stock. Our level of invest-
ment depends on a variety of factors, including
the stock price and blackout periods during which
we are restricted from repurchasing shares. In 2004,
we repurchased $4.1 billion of Amgen common
stock, representing approximately 69 million shares.
In December 2004, Amgen’s board of directors
authorized the repurchase of up to an additional $5.0
billion of common stock. As of December 31,2004,
we have approximately $6.0 billion remaining under
our stock repurchase programs. Since inception of
the stock repurchase program in 1992, Amgen has
purchased 454 million shares at a cost of $12.8 billion.
These shares theoretically were worth $29.1 billion
as of December 31,2004.
At year-end 2004, the closing price for Amgen
common stock was $64.15 per share, an increase of
4 percent for the year, while the S&P 500 Index
showed an increase of 11 percent for the year. Over
fi ve-year and ten-year periods beginning December
31,1994, an investment in Amgen common stock
would have increased by 714 percent and 770 percent,
respectively. A similar investment in the S&P 500
Index would have increased by 251 percent and
213 percent, respectively, over the same timeframes.
Amgen S&P 500
2004 $869.84 $312.58
1999 $814.42 $351.12
1994 $100.00 $100.00
12.31.94 12.31.99 12.31.04
Amgen
S&P 500
$100 invested in Amgen
vs. S&P 500 Index
Five-year and ten-year comparison
Cost 12.31.04*
Theoretical value
$29,140
Stock repurchases
since inception of
stock repurchase program
($ in millions )
* Based on the
closing price of
Amgen stock on
December 31,2004
$12,835
Amgen 2004 Annual Report page 32