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Amgen Reports First Quarter 2017 Financial Results

Published: Apr 27, 2017

THOUSAND OAKS, Calif., April 26, 2017 /PRNewswire/ -- Amgen (NASDAQ:AMGN) today announced financial results for the first quarter of 2017. Key results include:

  • Total revenues decreased 1 percent versus the first quarter of 2016 to $5.5 billion.
  • GAAP earnings per share (EPS) increased 12 percent to $2.79 driven by higher operating margins.
    • GAAP operating income increased 8 percent to $2.6 billion and GAAP operating margin increased 4 percentage points to 49.8 percent.
  • Non-GAAP EPS increased 9 percent to $3.15 driven by higher operating margins.
    • Non-GAAP operating income increased 5 percent to $3.0 billion and non-GAAP operating margin increased 3 percentage points to 57.6 percent.
  • 2017 EPS guidance increased to $10.64-$11.32 on a GAAP basis and $12.00-$12.60 on a non-GAAP basis; total revenues guidance unchanged at $22.3-$23.1 billion.
  • The Company generated $2.2 billion of free cash flow in the first quarter versus $1.8 billion in the first quarter of 2016.

"We are well positioned for the long term with our newer products demonstrating volume growth around the world and our tight operational expense management of the Company," said Robert A. Bradway, chairman and chief executive officer. "With robust Repatha® (evolocumab) outcomes data, we are working with payers to improve access to this important therapy for patients at risk for heart attacks and strokes."

$Millions, except EPS and percentages


Q1'17


Q1'16


YOY








Total Revenues


$ 5,464


$ 5,527


(1%)

GAAP Operating Income


$ 2,591


$ 2,402


8%

GAAP Net Income


$ 2,071


$ 1,900


9%

GAAP EPS


$   2.79


$   2.50


12%

Non-GAAP Operating Income


$ 2,995


$ 2,859


5%

Non-GAAP Net Income


$ 2,333


$ 2,203


6%

Non-GAAP EPS


$   3.15


$   2.90


9%


References in this release to "non-GAAP" measures, measures presented "on a non-GAAP basis" and to "free cash flow" (computed by subtracting capital expenditures from operating cash flow) refer to non-GAAP financial measures. Adjustments to the most directly comparable GAAP financial measures and other items are presented on the attached reconciliations.

Product Sales Performance

  • Total product sales decreased 1 percent for the first quarter of 2017 versus the first quarter of 2016.
  • Neulasta® (pegfilgrastim) sales increased 2 percent as favorable changes in accounting estimates and net selling price were offset partially by lower unit demand.
  • Enbrel®(etanercept) sales decreased 15 percent due to the impact of competition as well as lower rheumatology and dermatology segment growth compared to prior quarters.
  • Aranesp®(darbepoetin alfa) sales decreased 4 percent as higher unit demand was more than offset by unfavorable changes in foreign exchange rates, inventory and net selling price.
  • Prolia® (denosumab) sales increased 21 percent driven by higher unit demand.
  • Sensipar/Mimpara®(cinacalcet) sales increased 15 percent driven primarily by net selling price.
  • XGEVA®(denosumab) sales increased 6 percent driven by higher unit demand.
  • EPOGEN® (epoetin alfa) sales decreased 10 percent driven by net selling price.
  • KYPROLIS® (carfilzomib) sales increased 23 percent driven by higher unit demand.
  • Nplate® (romiplostim) sales increased 9 percent driven by higher unit demand.
  • NEUPOGEN® (filgrastim) sales decreased 31 percent driven primarily by the impact of competition.
  • Vectibix® (panitumumab) sales increased 2 percent driven by higher unit demand, offset partially by unfavorable changes in foreign exchange rates.
  • Repatha sales increased driven by higher unit demand.
  • BLINCYTO®(blinatumomab) sales increased 26 percent driven by higher unit demand.

 

Product Sales Detail by Product and Geographic Region

$Millions, except percentages


Q1'17


Q1'16


YOY



US

ROW

TOTAL


TOTAL


TOTAL










Neulasta®


$1,048

$162

$1,210


$1,183


2%

Enbrel®


1,118

63

1,181


1,385


(15%)

Aranesp®


278

233

511


532


(4%)

Prolia®


279

146

425


352


21%

Sensipar® / Mimpara®


337

84

421


367


15%

XGEVA®


298

104

402


378


6%

EPOGEN®


270

0

270


300


(10%)

KYPROLIS®


137

53

190


154


23%

Nplate®


97

57

154


141


9%

NEUPOGEN®


101

47

148


213


(31%)

Vectibix®


61

86

147


144


2%

Repatha®


33

16

49


16


*

BLINCYTO®


23

11

34


27


26%

Other**


15

42

57


47


21%










Total product sales


$4,095

$1,104

$5,199


$5,239


(1%)










* Change in excess of 100%





** Other includes Bergamo, MN Pharma, IMLYGIC®and Corlanor®







Operating Expense, Operating Margin and Tax Rate Analysis

On a GAAP basis:

  • Total Operating Expenses decreased 8 percent, with all expense categories reflecting savings from our transformation and process improvement efforts. Cost of Sales margin improved by 0.2 percentage points driven primarily by manufacturing efficiencies, offset partially by product mix. Research & Development (R&D)

    To read full press release, please click here.

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