THOUSAND OAKS, Calif., Oct. 28, 2015 /PRNewswire/ -- Amgen (NASDAQ:AMGN) today announced financial results for the third quarter of 2015. Key results include:
- Total revenues increased 14 percent versus the third quarter of 2014 to $5,723 million, with 14 percent product sales growth driven primarily by Enbrel® (etanercept), Sensipar® (cinacalcet), Neulasta® (pegfilgrastim), Prolia® (denosumab), XGEVA® (denosumab) and Kyprolis® (carfilzomib). Unfavorable changes in foreign exchange rates impacted total revenue and product sales growth by 2 percentage points.
- Adjusted EPS grew 18 percent versus the third quarter of 2014 to $2.72 driven by higher revenues and higher operating margins. Adjusted operating income increased 19 percent to $2,686 million and adjusted operating margin improved by 2 percentage points to 49 percent.
- GAAP EPS were $2.44 compared to $1.61 and GAAP operating income was $2,339 million compared to $1,466 million. The prior year was negatively impacted by charges for the restructuring plan announced in the third quarter of 2014.
- The Company generated $2.7 billion of free cash flow compared to $2.6 billion in the third quarter of 2014.
“We delivered record revenues, adjusted earnings and cash flow in the third quarter, while improving our operating margins and investing in six exciting new product launches,” said Robert A. Bradway, chairman and chief executive officer. “With several innovative medicines still in development, we are well on the way to achieving our long-term objectives for shareholders and patients alike.”
Year-over-Year | ||||||
$Millions, except EPS and percentages | Q3 ’15 | Q3 ’14 | YOY | |||
Total Revenues | $ 5,723 | $ 5,031 | 14% | |||
Adjusted Operating Income | $ 2,686 | $ 2,263 | 19% | |||
Adjusted Net Income | $ 2,081 | $ 1,769 | 18% | |||
Adjusted EPS | $ 2.72 | $ 2.30 | 18% | |||
GAAP Operating Income | $ 2,339 | $ 1,466 | 60% | |||
GAAP Net Income | $ 1,863 | $ 1,244 | 50% | |||
GAAP EPS | $ 2.44 | $ 1.61 | 52% | |||
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. |
Third Quarter 2015 Product Sales Performance
- Total product sales increased 14 percent for the third quarter of 2015 versus the third quarter of 2014. The increase was driven primarily by ENBREL, Sensipar, Neulasta, Prolia, XGEVA and Kyprolis. Growth for the quarter was due to net selling price, low inventory levels in the prior year period and higher unit demand.
- ENBREL sales increased 30 percent year-over-year driven by net selling price and low inventory levels in the prior year period, offset partially by the impact of competition.
- Neulasta sales increased 6 percent year-over-year driven by net selling price and favorable changes in inventory levels.
- Aranesp® (darbepoetin alfa) sales increased 4 percent year-over-year driven by higher unit demand, including a shift in dialysis customer purchases from EPOGEN® (epoetin alfa), offset partially by net selling price and unfavorable changes in foreign exchange rates.
- EPOGEN sales decreased 6 percent year-over-year driven by the impact of competition and the shift to Aranesp, offset partially by favorable changes in inventory levels and net selling price.
- XGEVA sales increased 19 percent year-over-year driven primarily by higher unit demand.
- Sensipar/Mimpara® sales increased 29 percent year-over-year driven by low inventory levels in the prior year period, net selling price and higher unit demand.
- Prolia sales increased 25 percent year-over-year driven by higher unit demand.
- NEUPOGEN® (filgrastim) sales decreased 5 percent year-over-year driven primarily by the impact of competition in the United States (U.S.).
- Kyprolis sales increased 46 percent year-over-year driven by higher unit demand.
- Nplate® (romiplostim) sales increased 15 percent year-over-year driven by higher unit demand.
- Vectibix®(panitumumab) sales decreased 4 percent year-over-year driven by unfavorable changes in foreign exchange rates. Strong unit growth continued in the U.S. and Europe.
Product Sales Detail by Product and Geographic Region
$Millions, except percentages | Q3 ’15 | Q3 ’14 | YOY | |||||
US | ROW | TOTAL | TOTAL | TOTAL | ||||
Enbrel® | $1,392 | $67 | $1,459 | $1,120 | 30% | |||
Neulasta® | 1,056 | 211 | 1,267 | 1,193 | 6% | |||
Aranesp® | 239 | 254 | 493 | 474 | 4% | |||
EPOGEN® | 489 | 0 | 489 | 518 | (6%) | |||
XGEVA® | 273 | 105 | 378 | 318 | 19% | |||
Sensipar® / Mimpara® | 268 | 85 | 353 | 273 | 29% | |||
Prolia® | 205 | 115 | 320 | 255 | 25% | |||
NEUPOGEN® | 218 | 66 | 284 | 300 | (5%) | |||
Kyprolis® | 124 | 13 | 137 | 94 | 46% | |||
Nplate® | 84 | 53 | 137 | 119 | 15% | |||
Vectibix® | 54 | 78 | 132 | 138 | (4%) | |||
Other* | 23 | 44 | 67 | 46 | 46% | |||
Total product sales | $4,425 | $1,091 | $5,516 | $4,848 | 14% | |||
* Other includes MN Pharma, BLINCYTO®, Bergamo, Repatha, Corlanor® | ||||||||
Third Quarter Operating Expense, Operating Margin and Tax Rate Analysis, on an Adjusted Basis
- Operating Expenses increased 10 percent. Operating expense growth was reduced by 3 percentage points due to changes in foreign exchange rates.
- Cost of Sales margin improved 2.2 points driven by net selling prices, lower royalty expense and manufacturing efficiencies.
- Research & Development (R&D) expenses increased 11 percent driven by upfront payments related to the Company’s recent deal activity and increased support for launch products, offset partially by savings from transformation and process improvement efforts.
- Selling, General & Administrative expenses increased 17 percent driven primarily by investments in new product launches and ENBREL-related payments, offset partially by savings from transformation and process improvement efforts.
- Operating Margin improved by 2 percentage points to 49 percent.
- Tax Rate increased 0.9 percentage points to 18.0 percent primarily due to changes in the geographic mix of earnings.
$Millions, except percentages | ||||
