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Amgen 2006 Annual Report
Our Promise

Table of contents

  • Page 1
    Our Promise Amgen 2006 Annual Report

  • Page 2
    "When I make controlling my disease a priority, I can keep my commitments to my family and my business."

  • Page 3
    Joe Carlin of Cary, North Carolina, takes Enbrel ® (etanercept) to help control his severe plaque psoriasis. ENBREL has made a difference in the lives of people coping with moderate-to-severe rheumatoid arthritis, moderate-to-severe juvenile rheumatoid arthritis, psoriatic arthritis, ankylosing ...

  • Page 4
    ... a dramatic difference for patients." Dear Stockholders, I am pleased to report that Amgen delivered excellent performance in 2006. We grew revenues and adjusted earnings per share* by 15 and 22 percent, respectively, while increasing our investment in research and development by nearly 40 percent...

  • Page 5
    ... Puerto Rico facility recently added two new manufacturing plants, and further expansion is underway. In County Cork, Ireland, a planned major new manufacturing site will help us meet demand for our medicines in Europe and elsewhere. These investments are testaments to our faith in our pipeline and...

  • Page 6
    Amgen 2006 Annual Report 4 The Promise of Our Pipeline We believe that our pipeline holds the potential to provide more effective treatments for cancer, osteoporosis, diabetes and other serious illnesses. AMG 220 Crohn's disease AMG 317 Asthma AMG 557 Systemic lupus erythematosus AMG 623 Systemic ...

  • Page 7
    ... Cinacalcet HCI Cardiovascular disease in patients with secondary hyperparathyroidism and chronic kidney disease undergoing maintenance dialysis Darbepoetin alfa Anemia in heart failure Darbepoetin alfa Cardiovascular disease in patients with chronic kidney disease and type 2 diabetes AMG 531 Immune...

  • Page 8
    Our Promise

  • Page 9
    ... serious illness. Amgen therapies have already made a real difference in millions of lives. With many more potential new medicines in development, and with the help of many partners in industry and education who share our belief in the transformative power of science, we are working to bring the...

  • Page 10
    "This plant allows us to deliver on the promise of Vectibix ." â„¢

  • Page 11
    ... antibody therapy Vectibixâ„¢ (panitumumab). In 2006, the FDA approved Vectibixâ„¢ to treat patients with metastatic colorectal cancer whose disease has progressed after all standard chemotherapy regimens. The plant in Fremont, California, came to Amgen with Amgen's 2006 acquisition of Abgenix...

  • Page 12
    ... your decisions impact one patient at a time. Working in clinical development for a company like Amgen, your contributions can help change medical practice and impact millions of lives." Thomas H. Cartwright, M.D., Ocala Oncology Center Dr. Cartwright has practiced medical oncology for 25 years. He...

  • Page 13
    ... plant has been devoted almost exclusively to manufacturing the bulk form of the product. "Integrating Abgenix into Amgen was a key component in successfully delivering Vectibixâ„¢ to patients," says Dennis Fenton, executive vice president, Operations. "Nearly 90 percent of the Amgen Fremont staff...

  • Page 14
    ... Kevin Sharer, chairman and chief executive officer. "We want to ensure that no patient is denied access to our medicines because of their financial situation." The company offers a range of patient assistance programs, including the following: Amgen™ Oncology Assistance The Amgen™ Oncology...

  • Page 15
    ... beneficiary Alvarado receives NEUPOGEN® (Filgrastim) through Amgen's SAFETY NET® Foundation. After an injury left him unable to work, he required assistance to afford medication. A former police officer, Alvarado is active in his Chicago community with the Old Neighborhood Italian-American Club...

  • Page 16

  • Page 17
    ...make cupcakes together." Peggy Reilly of Vallejo, California, has endured numerous treatment regimens for colorectal ...â„¢ (panitumumab), recently approved for the treatment of metastatic colorectal cancer in patients whose tumors have continued to grow despite standard chemotherapy. Peggy says, "I...

  • Page 18
    ... discovery and drug development programs at Amgen. These projects focus on researching cell signaling, cell cycle and developmental pathways that are activated in cancers. In addition, developing technologies to support identification of new targets in human cancer is an important part of her work.

  • Page 19
    ... comes an abundance of potential new avenues for cancer research. Amgen products have transformed the treatment of anemia and neutropenia in people undergoing chemotherapy. As we continue to develop supportive care therapies to improve the health and lives of cancer patients, we are also...

  • Page 20
    ...encouraging results. "We are excited by the potential of denosumab to treat a broad range of bone loss conditions," says George Morrow, executive vice president, Global Commercial Operations. "If the data continue to look promising, we will look forward to working together with health care providers...

  • Page 21
    ... have researched treatments for cancer together since 1971. Their lab in Hershey, Pennsylvania, administered denosumab to the first patient in the United States. Guenther Steger, M.D., Medical University of Vienna Since 1992, Dr. Steger has led the clinical breast cancer unit and program for...

  • Page 22
    ... (darbepoetin alfa), to manage anemia caused by her kidney disease. She also receives Sensipar ® (cinacalcet HCl) to help manage secondary hyperparathyroidism. In addition, Rosalyn takes medications to control her type 2 diabetes and hypertension. She recently lost 100 pounds and hopes to be placed...

  • Page 23
    "I made a promise to myself and my family to do everything I can to manage my kidney disease and live my life with hope."

  • Page 24
    ... results from KEEP screenings provide patients with information that may prompt them to seek medical attention in the early stages of diabetes and other diseases that affect kidney function. Kathrin Nöckel, Aranesp® (darbepoetin alfa) patient Eighteen-year-old Nöckel is a home economics student...

  • Page 25
    ... that people at risk have access to KEEP." Seeking ways to help more patients "Amgen is committed to building on our pioneering work to advance anemia treatment for patients with chronic kidney disease," says Helen Torley, head of the company's Nephrology business. "Leadership is something you have...

  • Page 26
    ... of science educators in unrestricted cash awards and restricted grants. This year, AASTE will honor 30 teachers in places where Amgen has key sites, including California, Colorado, Kentucky, Massachusetts, Puerto Rico, Rhode Island and Washington. The Amgen-Bruce Wallace Biotechnology Lab Program...

  • Page 27
    ... lives." "By providing access to exciting research programs and dynamic industry leaders, Amgen Scholars will engage and inspire the next generation of scientists." Robby Moorefield, Amgen Fellow and eighth-grade science teacher, Henderson Middle School A chemical engineering graduate of North...

  • Page 28
    ...(center) and Amgen Executive Vice President of Research and Development Roger Perlmutter (far right). Right: Amgen's new international headquarters in Zug, Switzerland. Center row Left: An Amgen staff member, formerly with Abgenix, works in the cell culture facility at the company's plant in Fremont...

  • Page 29
    ... in Dubai, United Arab Emirates; Mexico City, Mexico; and Hong Kong, China. The company opened a new European Development Centre in Uxbridge, U.K., and began expansion of existing research and development operations in Cambridge, Massachusetts; South San Francisco; Seattle; and Cambridge, U.K. Amgen...

  • Page 30
    ... per share data) Years ended December 31, Revenues: Product sales Other revenues Total revenues Operating expenses: Cost of sales (excludes amortization of acquired intangible assets presented below) Research and development Write-off of acquired in-process research and development Selling, general...

  • Page 31
    ... solid growth domestically and internationally. Our 2006 total revenues were $14.3 billion, which exceeded our previous all-time high achieved in 2005. Despite a 39 percent increase in adjusted research and development (R&D) expense and additional investments to support our growing organization...

  • Page 32
    ... charge related to acquired in-process research and development. Adjusted earnings per share for 2006 and 2005 exclude, for the applicable periods, stock option expense, certain expenses related to the acquisitions of Abgenix, Avidia, Tularik Inc. (in 2004) and Immunex Corporation (in 2002) and...

  • Page 33
    ... Value ** Capital expenditures ($ in millions) Stock repurchases since inception of stock repurchase program in 1992 ($ in millions) $100 invested in Amgen vs. S&P 500 Index and NASDAQ Composite Index (Five-year and ten-year comparison) In April 2006, we acquired Abgenix, a company with...

  • Page 34
    Amgen 2006 Annual Report 32 Financial Review Looking ahead Aranesp® (darbepoetin alfa), Neulasta® (pegfilgrastim) and Enbrel® (etanercept) sales are expected to continue to drive year-over-year sales growth in 2007 and we also expect that Vectibix™ (panitumumab) will contribute to that ...

  • Page 35
    ...(47) (1) To exclude the non-cash expense associated with writing off the acquired in-process research and development related to the acquisitions of Abgenix, Inc. (Abgenix) and Avidia, Inc (Avidia) in 2006, Tularik Inc. (Tularik) in 2004 and Immunex Corporation (Immunex) in 2002. (2) To exclude the...

  • Page 36
    ...Global Development, and Corporate Chief Medical Officer Rolf Hoffmann Senior Vice President, Amgen International Commercial Operations Brian M. McNamee Senior Vice President, Human Resources Joseph P. Miletich Senior Vice President, Research and Development George J. Morrow Executive Vice President...

  • Page 37
    ... and economically viable management of the world's forests. Amgen employed Cenveo Anderson Lithograph, an environmentally sustainable printer, for the production of this Annual Report. Cenveo Anderson Lithograph is FSC-certified; has a zero-landfill, 100 percent recycling policy for all hazardous...

  • Page 38
    © 2007 Amgen Inc. All rights reserved. MC36222 660M/3-07