Amgen 2006 Annual Report Download - page 31

Amgen 2006 Annual Report 29
* We began recording ENBREL sales subsequent to our acquisition of Immunex Corporation
on July 15, 2002.
Financial highlights
2006 was another strong year for us. Total revenue grew
15 percent, reflecting 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,
adjusted earnings per share grew 22 percent. In October 2006,
we launched Vectibix™ (panitumumab), our first therapy to combat
cancer. Vectibix™ received FDA approval in late September 2006
for use in patients with metastatic colorectal cancer whose disease
has progressed after all standard chemotherapy regimens.
Sales growth
Total 2006 product sales grew 15 percent over the prior year
to $13.9 billion, principally due to Aranesp® (darbepoetin alfa),
Neulasta® (pegfilgrastim) and Enbrel® (etanercept). Sales for
these products benefited from share gains and/or segment
growth. Total U.S. product sales grew 15 percent to $11.4 billion,
representing 82 percent of our total product sales in 2006. Our
international product sales, primarily concentrated in Europe,
grew 16 percent to $2.5 billion in 2006. Our international sales
growth was driven principally by Aranesp® and Neulasta®
.
Worldwide sales of Aranesp® grew 26 percent in 2006 to
$4.1 billion. U.S. Aranesp® sales were $2.8 billion in 2006,
representing an increase of 33 percent over 2005, primarily
driven by demand reflecting share gains and segment growth.
International Aranesp® sales increased 14 percent over 2005
to $1.3 billion, also principally driven by demand.
Total sales of EPOGEN® (Epoetin alfa) increased 2 percent to
$2.5 billion primarily due to increased demand in the free-standing
dialysis centers partially offset by conversion to Aranesp® in the
U.S. hospital dialysis clinics. We believe that this conversion
stabilized in mid-2006.
Total combined worldwide sales of Neulasta® and NEUPOGEN®
(Filgrastim) grew 12 percent in 2006 to $3.9 billion. Combined
U.S. sales totaled $3 billion, an increase of 13 percent over 2005.
Increased U.S. growth for Neulasta® and NEUPOGEN® was
primarily driven by demand for Neulasta®
, which benefited from
a product label extension based on clinical data demonstrating
the value of first-cycle use in moderate-high risk chemotherapy
regimens and a 2 percent price increase implemented in
April 2006. Combined international sales totaled $0.9 billion,
an increase of 10 percent over 2005. International sales growth
for Neulasta® and NEUPOGEN® was primarily driven by demand
for Neulasta®
.
ENBREL sales in 2006 grew 12 percent to $2.9 billion. Sales
growth for ENBREL was driven by increased demand in both the
rheumatology and dermatology segments and benefited from a
4.9 percent price increase that went into effect in May 2006.
While ENBREL continued to maintain a leading position in both
rheumatology and dermatology, we have experienced a modest
share loss in both segments in 2006 compared to 2005. Sales
growth for ENBREL was also impacted by slowing segment
growth in dermatology and by increased competitive activities
in both segments.
Financial Review
Aranesp® product sales
($ in millions)
2006 $4,121
2005 3,273
2004 2,473
2003 1,544
2002 416
04 05 060302
EPOGEN® product sales
($ in millions)
2006 $2,511
2005 2,455
2004 2,601
2003 2,435
2002 2,261
04 05 060302
ENBREL product sales*
($ in millions)
2006 $2,879
2005 2,573
2004 1,900
2003 1,300
2002 362
04 05 06030202
Neulasta®/NEUPOGEN®
product sales
($ in millions)
2006 $3,923
2005 3,504
2004 2,915
2003 2,522
2002 1,844
04 05 0603
Neulasta®
NEUPOGEN®