Amgen 2013 Annual Report Download

Dear Shareholders,
2013 was a landmark year for Amgen. We
delivered financially for investors as we executed
on our core strategies and set the stage for
long-term growth. In 2013, revenues increased
8 percent to $18.7 billion. Adjusted earnings per
share* grew 17 percent to $7.60, reflecting
strong execution and continued momentum in
our business. Our total shareholder return of
35 percent outperformed the S&P 500 in 2013.
Just as important, we made the long-term
investments necessary to continue to advance
our later-stage pipeline and grow globally.
We plan to have pivotal data on 10 innovative
molecules in our later-stage pipeline by 2016
and to advance a portfolio of six biosimilar
molecules that have the potential to begin
launching in 2017. We are also now present in
more than 75 countries, including Japan, China
and other emerging markets.
All of this gives me great confidence that we
are creating a very exciting future for Amgen.
We are pushing the boundaries of biotechnology
to find new ways to deliver for patients suffering
from serious illnesses. We are also bringing
our medicines to new markets, providing new
treatment options for patients around the world.
Delivering for Shareholders
Consistent with our capital allocation strategy,
we continued to return significant capital to
shareholders: first, in the form of $1.4 billion
in cash dividends paid in 2013, and second,
through the repurchase of $0.8 billion of our
stock in 2013, for a total return of capital of
$2.2 billion. In December 2013, we declared
a dividend of $0.61 per share of common
stock, payable in March 2014, representing a
30 percent increase over the quarterly dividend
paid in each of the last four quarters. In addition
to a higher dividend, our share price appreciated
significantly in 2013.
Continued Product Growth
Our performance in 2013 was driven by strong
execution across the portfolio. Product sales
grew 10 percent in the United States, and
8 percent in the rest of the world.
Neulasta® (pegfilgrastim) and NEUPOGEN®
(filgrastim) sales grew in 2013 with an
established track record of efficacy and safety
in the oncology setting. Notably, Neulasta®
represents more than 75 percent of our
filgrastim business.
With Enbrel® (etanercept), we are pleased that
the investment we have been making continues
to yield attractive returns. In addition, 2014 will
be an important year for ENBREL, as we expect
an $800-million incremental operating income
contribution from this franchise.
EPOGEN® (epoetin alfa) remained a viable
therapy for patients with anemia undergoing
dialysis in 2013.
Sensipar®/Mimpara® (cinacalcet), our therapy
for patients with secondary hyperparathyroidism
on dialysis, generated sales in excess of
$1 billion in 2013. Furthermore, Nplate®
(romiplostim) and Vectibix® (panitumumab)
continued to grow, while Aranesp® (darbepoetin
alfa) remained an important therapy in use by
physicians for the treatment of anemia.
Prolia® (denosumab) and XGEVA® (denosumab)
also continued to grow, having contributed sales
of $1.8 billion in 2013 and having now become
available in all major European countries. In
addition, XGEVA® became the seventh product
in our portfolio to exceed $1 billion of sales in
a single year.
Kyprolis® (carfilzomib) is in the early stages of
its launch and continues to be the therapy of
Letter to
Shareholders
*Adjusted earnings per share is a non-GAAP financial measure. See back page for reconciliation to U.S. generally accepted accounting principles (GAAP).
Robert A. Bradway, Chairman and Chief Executive Officer, Amgen Inc.