Filter News

Amgen Reports Third Quarter 2016 Financial Results

Published: Oct 28, 2016

THOUSAND OAKS, Calif., Oct. 27, 2016 /PRNewswire/ -- Amgen (NASDAQ:AMGN) today announced financial results for the third quarter of 2016. Key results include:

  • Revenues increased 2 percent versus the third quarter of 2015 to $5.8 billion.
    • Strong unit volume growth from Sensipar® (cinacalcet), Prolia® (denosumab), Vectibix® (panitumumab), XGEVA® (denosumab) and Nplate® (romiplostim).
  • GAAP earnings per share (EPS) increased 10 percent to $2.68 driven by higher revenues and higher operating margins.
    • GAAP operating income increased 8 percent to $2,527 million and GAAP operating margin improved by 3.4 percentage points to 45.8 percent.
  • Non-GAAP EPS increased 11 percent to $3.02 driven by higher revenues and higher operating margins.
    • Non-GAAP operating income increased 9 percent to $2,916 million and non-GAAP operating margin improved by 4.2 percentage points to 52.9 percent.
  • 2016 total revenues guidance increased to $22.6-$22.8 billion; EPS guidance increased to $9.94-$10.11 on a GAAP basis and $11.40-$11.55 on a non-GAAP basis.
  • The Company generated $2.5 billion of free cash flow.

"Our business is performing well and our double-digit earnings per share growth reflects the progress we have made through our transformation efforts," said Robert A. Bradway, chairman and chief executive officer. "We are focused on growing several newly launched products and advancing the pipeline globally."

$Millions, except EPS and percentages


Q3'16


Q3'15


YOY








Total Revenues


$ 5,811


$ 5,723


2%

GAAP Operating Income


$ 2,527


$ 2,339


8%

GAAP Net Income


$ 2,017


$ 1,863


8%

GAAP EPS


$   2.68


$   2.44


10%

Non-GAAP Operating Income


$ 2,916


$ 2,686


9%

Non-GAAP Net Income


$ 2,276


$ 2,081


9%

Non-GAAP EPS


$   3.02


$   2.72


11%


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 were flat for the third quarter of 2016 versus the third quarter of 2015.
  • Enbrel® (etanercept) sales were flat as higher net selling price was offset by the impact of competition and unfavorable changes in inventory levels.
  • Neulasta® (pegfilgrastim) sales decreased 5 percent driven by lower unit demand.
  • Aranesp® (darbepoetin alfa) sales increased 8 percent driven mainly by higher unit demand due to a shift by some U.S. dialysis customers from EPOGEN® (epoetin alfa) to Aranesp.
  • Sensipar/Mimpara® sales increased 18 percent driven by net selling price and higher unit demand.
  • XGEVA sales increased 4 percent driven by higher unit demand.
  • Prolia sales increased 18 percent driven by higher unit demand.
  • EPOGEN sales decreased 31 percent driven by the impact of competition, abnormally high purchases by a large end customer in the year ago period and a shift by some U.S. dialysis customers to Aranesp.
  • KYPROLIS®(carfilzomib) sales increased 34 percent driven by higher unit demand.
  • NEUPOGEN® (filgrastim) sales decreased 36 percent driven mainly by the impact of competition in the U.S.
  • Vectibix sales increased 24 percent driven by higher unit demand.
  • Nplate sales increased 10 percent driven by higher unit demand and net selling price.
  • Repatha®(evolocumab) sales growth was 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


Q3'16


Q3'15


YOY



US

ROW

TOTAL


TOTAL


TOTAL










Enbrel®


$1,388

$64

$1,452


$1,459


0%

Neulasta®


1,024

176

1,200


1,267


(5%)

Aranesp®


275

256

531


493


8%

Sensipar® / Mimpara®


329

86

415


353


18%

XGEVA®


296

98

394


378


4%

Prolia®


249

130

379


320


18%

EPOGEN®


335

0

335


489


(31%)

KYPROLIS®


140

43

183


137


34%

NEUPOGEN®


127

56

183


284


(36%)

Vectibix®


64

100

164


132


24%

Nplate®


92

59

151


137


10%

Repatha®

31

9

40


3


*

BLINCYTO®

19

10

29


23


26%

Other**


14

46

60


41


46%










Total product sales


$4,383

$1,133

$5,516


$5,516


0%










* 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:

  • Cost of Sales margin improved by 0.1 percentage points driven primarily by manufacturing efficiencies and higher net selling price, offset partially by product mix. Research & Development (R&D) expenses decreased 12 percent driven primarily by lower spending required to support certain later-stage clinical programs and transformation and process improvement efforts. Selling, General & Administrative (SG&A) expenses were flat. Total Operating Expenses decreased 3 percent, with all expense categories reflecting savings from our transformation and process improvement efforts.
  • Operating Margin improved by 3.4 percentage points to 45.8 percent.
  • Tax Rate increased by 1.6 percentage points due primarily to changes in the geographic mix of earnings.

On a non-GAAP basis:

  • Cost of Sales margin improved by 0.5 percentage points driven primarily by manufacturing efficiencies and higher net selling price, offset partially by product mix.

    To read full press release, please click here.

Back to news