THOUSAND OAKS, Calif., July 29, 2014 /PRNewswire/ -- Amgen (NASDAQ: AMGN) today announced financial results for the second quarter of 2014. Key results include:
- Total revenues increased 11 percent to $5,180 million, with 8 percent product sales growth driven by strong performance across the portfolio, particularly Enbrel® (etanercept), Kyprolis® (carfilzomib), Prolia® (denosumab) and XGEVA® (denosumab).
- Adjusted EPS grew 25 percent to $2.37, driven by higher revenues and a significant increase in the profitability of ENBREL. Adjusted net income increased 26 percent to $1,823 million.
- The Company generated $2.1 billion of free cash flow compared with $1.4 billion in the second quarter of 2013.
- GAAP EPS were $2.01 compared to $1.65 a year ago and GAAP net income was $1,547 million compared to $1,258 million.
“Robust growth through the first half of 2014 affirms the underlying strength of our business,” said Robert A. Bradway, chairman & chief executive officer. “We are making excellent progress in advancing our pipeline as we prepare to launch a number of promising new innovative medicines. From a position of strength, we have announced today restructuring initiatives that will allow us to reallocate resources to invest in our upcoming launches and drive growth.”
Year-over-Year | ||||||
$Millions, except EPS and percentages | Q2 ’14 | Q2 ’13 | YOY | |||
Total Revenues | $ 5,180 | $ 4,679 | 11% | |||
Adjusted Net Income | $ 1,823 | $ 1,444 | 26% | |||
Adjusted EPS | $ 2.37 | $ 1.89 | 25% | |||
GAAP Net Income | $ 1,547 | $ 1,258 | 23% | |||
GAAP EPS | $ 2.01 | $ 1.65 | 22% | |||
References in this release to “adjusted” measures, measures presented “on an adjusted basis” or to free cash flow refer to non-GAAP financial measures. These adjustments and other items are presented on the attached reconciliations. |
Product Sales Performance
- Total product sales increased 8 percent for the second quarter of 2014 versus the second quarter of 2013. The increase was mainly driven by ENBREL, Kyprolis, Prolia and XGEVA. Product sales in the second quarter of 2013 included a positive adjustment of $185 million to previous estimates for managed Medicaid rebates based on claims experience.
- Enbrel sales increased 7 percent year-over-year for the second quarter driven mainly by price. ENBREL continues to benefit from strong underlying demand and segment growth.
- Kyprolis sales for the second quarter of 2014 were $78 million. The year-over-year comparison is not relevant as Onyx Pharmaceuticals, Inc. (Onyx) was acquired in Q4 of 2013.
- Prolia sales increased 40 percent year-over-year for the second quarter driven by higher unit demand from share growth.
- XGEVA sales increased 20 percent year-over-year for the second quarter driven by higher unit demand. XGEVA continues to capture share in a growing market despite competition from generic zoledronic acid.
- Combined Neulasta® (pegfilgrastim) and NEUPOGEN® (filgrastim) sales declined year-over-year by 1 percent for the second quarter.
- Global Neulasta sales increased 1 percent year-over-year for the second quarter driven by price offset partially by the prior year positive Medicaid rebate estimate adjustment.
- Global NEUPOGEN sales decreased 9 percent year-over-year for the second quarter due to the prior year positive Medicaid rebate adjustment.
- Underlying demand was slightly impacted by short- and long-acting competition in the U.S. and Europe, respectively.
- Aranesp® (darbepoetin alfa) sales decreased 1 percent year-over-year for the second quarter mainly due to the prior year positive Medicaid rebate estimate adjustment. Underlying demand continues to decrease slightly due to practice patterns in the U.S. and competitive pricing pressures in Europe.
- EPOGEN®(epoetin alfa) sales increased 2 percent year-over-year for the second quarter driven by price, offset partially by the prior year positive Medicaid rebate estimate adjustment. Unit demand continues to be relatively stable.
- Sensipar®/Mimpara®(cinacalcet) sales increased 15 percent year-over-year for the second quarter driven primarily by higher unit demand growth across all regions and price increases in the U.S.
- Vectibix®(panitumumab) increased 42 percent year-over-year for the second quarter driven by higher unit demand across all regions.
- Nplate®(romiplostim) increased 12 percent year-over-year for the second quarter driven mainly by higher unit demand and strong market growth across all regions.
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