Amgen 2013 Annual Report Download - page 47

The decrease in other revenues for 2013 was due primarily to revenue recognized in the prior year related to changes in our motesanib collaboration with
Takeda and milestone payments received in the prior year from AstraZeneca and Astellas Pharma Inc. The modification to the Takeda arrangement resulted in
revenue recognition of $230 million in 2012 and resulted in Takeda receiving an exclusive license to develop, manufacture and commercialize motesanib.
The increase in operating expenses for 2013 was driven primarily by R&D and Selling, general and administrative (SG&A) spending including the
addition of Onyx effective October 1, 2013.
The increase in net income for 2013 was due primarily to a lower effective income tax rate as well as higher Operating income.
The increase in diluted EPS for 2013 was driven primarily by an increase in net income and, to a lesser extent, by the favorable impact of our stock
repurchase program in 2012 and the first quarter of 2013, which reduced the number of shares used to compute diluted EPS. We did not repurchase any
shares during the second, third or fourth quarters of 2013.
Although changes in foreign currency exchange rates result in increases or decreases in our reported international product sales, the benefit or detriment
that such movements have on our international product sales is offset partially by corresponding increases or decreases in our international operating expenses
and our related foreign currency hedging activities. Our hedging activities seek to offset the impacts, both positive and negative, that foreign currency exchange
rate changes may have on our net income by hedging our net foreign currency exposure, primarily with respect to product sales denominated in euros. The net
impact from changes in foreign currency exchange rates was not material in 2013, 2012 or 2011.
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Product sales
Worldwide product sales were as follows (dollar amounts in millions):
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



Neulasta®/NEUPOGEN®$5,790
8 %
$5,352
3 %
$5,212
ENBREL 4,551
7 %
4,236
14 %
3,701
Aranesp®1,911
(6)%
2,040
(11)%
2,303
EPOGEN®1,953
1 %
1,941
(5)%
2,040
XGEVA®1,019
36 %
748
*
351
Prolia®744
58 %
472
*
203
Sensipar®/Mimpara®1,089
15 %
950
18 %
808
Other products 1,135
26 %
900
33 %
677
Total product sales $18,192
9 %
$16,639
9 %
$15,295
Total U.S. $14,045
10 %
$12,815
9 %
$11,725
Total ROW 4,147
8 %
3,824
7 %
3,570
Total product sales $18,192
9 %
$16,639
9 %
$15,295
* Change in excess of 100%
Future sales of our products will depend, in part, on the factors discussed in the Overview, Item 1. Business — Marketing, Distribution and Selected
Marketed Products — Competition, Item 1A. Risk Factors and any additional factors discussed in the individual product sections below.
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