AMGEN REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS

THOUSAND OAKS, Calif., May 2, 2024 /PRNewswire/ -- Amgen (NASDAQ:AMGN) today announced financial results for the first quarter 2024.

"With many of our innovative products delivering strong growth and promising new medicines advancing through our pipeline, we are excited about delivering attractive long-term growth," said Robert A. Bradway, chairman and chief executive officer.

Key results include:

    --  For the first quarter, total revenues increased 22% to $7.4 billion in
        comparison to the first quarter of 2023. Product sales grew 22%, driven
        by 25% volume growth.
        --  Ten products delivered at least double-digit volume growth in the
            first quarter, including Repatha(®) (evolocumab), TEZSPIRE(®)
            (tezepelumab-ekko), EVENITY(®) (romosozumab-aqqg), BLINCYTO(®)
            (blinatumomab), and TAVNEOS(® )(avacopan).
        --  U.S. volume grew 29% and ex-U.S. volume grew 17%.
        --  Our performance included $914 million of sales from our Horizon
            Therapeutics (Horizon) acquisition, driven by several
            first-in-class, early-in-lifecycle medicines, including TEPEZZA(®)
            (teprotumumab-trbw), KRYSTEXXA(®) (pegloticase) and UPLIZNA(®)
            (inebilizumab-cdon).
        --  Excluding sales from Horizon, our product sales grew 6%, driven by
            volume growth of 9%.
    --  GAAP loss per share was $0.21 for the first quarter of 2024 compared
        with GAAP earnings per share (EPS) of $5.28 for the first quarter of
        2023, driven by a mark-to-market loss on our BeiGene, Ltd. equity
        investment and higher operating expenses, including higher amortization
        expense from Horizon-acquired assets and incremental expenses from
        Horizon, partially offset by higher revenues.
        --  GAAP operating income decreased from $1.9 billion to $1.0 billion,
            and GAAP operating margin decreased 19.0 percentage points to 13.9%.
    --  Non-GAAP EPS decreased 1% from $3.98 to $3.96, due to higher operating
        and interest expenses driven by the Horizon acquisition, partially
        offset by higher revenues.
        --  Non-GAAP operating income increased from $2.8 billion to $3.1
            billion, and non-GAAP operating margin decreased 5.1 percentage
            points to 43.2%.
    --  The Company generated $0.5 billion of free cash flow for the first
        quarter of 2024 versus $0.7 billion in the first quarter of 2023. This
        decrease was driven by an $800 million tax deposit, partially offset by
        timing of working capital items.

     References in this release to "non-GAAP" measures, measures presented "on a non-GAAP basis" and
      "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. Refer to Non-GAAP Financial
      Measures below for further discussion.

Product Sales Performance

Total product sales increased 22% for the first quarter of 2024 versus the first quarter of 2023, driven by 25% volume growth.

General Medicine

    --  Repatha(®) sales increased 33% year-over-year to $517 million in the
        first quarter, driven by 44% volume growth, partially offset by 13%
        lower net selling price. Repatha remains the global proprotein
        convertase subtilisin/kexin type 9 (PCSK9) segment leader, with over 2.9
        million patients treated since launch.
    --  Prolia(®) (denosumab) generated $999 million of sales in the first
        quarter. Sales increased 8% year-over-year primarily driven by volume
        growth.
    --  EVENITY(®) sales increased 35% year-over-year to $342 million for the
        first quarter, primarily driven by volume growth.

Oncology

    --  BLINCYTO(®) sales increased 26% year-over-year to $244 million for the
        first quarter, driven by broad prescribing across academic and community
        segments for patients with B-cell precursor acute lymphoblastic leukemia
        (B-ALL).
    --  Vectibix(®) (panitumumab) generated $247 million of sales in the first
        quarter. Sales increased 6% year-over-year driven by higher net selling
        price and volume growth, partially offset by unfavorable foreign
        exchange impact.
    --  KYPROLIS(®) (carfilzomib) sales increased 5% year-over-year to $376
        million for the first quarter, primarily driven by volume growth outside
        the U.S.
    --  LUMAKRAS(®)/LUMYKRAS(TM) (sotorasib) sales increased 11% year-over-year
        to $82 million for the first quarter, driven by volume growth.
    --  XGEVA(®) (denosumab) sales increased 5% year-over-year to $561 million
        for the first quarter, primarily driven by volume growth outside the
        U.S. and higher net selling price, partially offset by lower volume in
        the U.S.
    --  Nplate(®) (romiplostim) generated $317 million of sales in the first
        quarter. Sales decreased 12% year-over-year, primarily driven by volume
        decline in comparison to the first quarter of 2023, which included a
        U.S. government order of $82 million. Excluding the U.S. government
        order from this comparison, Nplate sales grew 13% year-over-year,
        primarily driven by volume growth.
    --  MVASI(®) (bevacizumab-awwb) generated $202 million of sales in the
        first quarter. Sales were flat year-over-year for the first quarter.
        Volume growth was largely offset by lower net selling price and
        unfavorable changes to estimated sales deductions. Going forward we
        expect continued net selling price erosion driven by competition.

Inflammation

    --  TEZSPIRE(®) generated $173 million of sales in the first quarter. Sales
        increased 80% year-over-year, primarily driven by volume growth.
        Healthcare providers recognize TEZSPIRE's unique, differentiated profile
        and its broad potential to treat the 2.5 million patients worldwide with
        severe asthma who are uncontrolled, without any phenotypic or biomarker
        limitation.
    --  Otezla(®) (apremilast) generated $394 million of sales in the first
        quarter. Sales increased 1% year-over-year for the first quarter.
    --  Enbrel(®) (etanercept) generated $567 million of sales in the first
        quarter. Sales decreased 2% year-over-year driven by volume decline,
        partially offset by higher inventory levels. Moving forward, we expect
        modest volume growth offset by declining net selling price.

Otezla and Enbrel typically have lower sales in the first quarter relative to subsequent quarters due to the impact of benefit plan changes, insurance reverifications and increased co-pay expenses as U.S. patients work through deductibles.

    --  AMJEVITA(®)/AMGEVITA(TM) (adalimumab) generated $168 million of sales
        in the first quarter. Sales increased 2% year-over-year primarily driven
        by international growth, partially offset by lower inventory levels and
        unfavorable change to estimated sales deductions.

Rare Disease

Except for TAVNEOS(®), the products listed below were added through the acquisition of Horizon on Oct. 6, 2023.

    --  TEPEZZA(® )(teprotumumab-trbw) generated $424 million of sales in the
        first quarter. TEPEZZA is the first and only FDA-approved treatment for
        thyroid eye disease (TED).
    --  KRYSTEXXA(® )(pegloticase) generated $235 million of sales in the first
        quarter. KRYSTEXXA is the first and only FDA-approved treatment for
        chronic refractory gout.
    --  UPLIZNA(® )(inebilizumab-cdon) generated $80 million of sales in the
        first quarter. UPLIZNA is used to treat adults with neuromyelitis optica
        spectrum disorders.
    --  TAVNEOS(®) generated $51 million of sales in the first quarter. Sales
        increased 122% year-over-year, driven by volume growth.
    --  Ultra rare products, which consist of RAVICTI(®) (glycerol
        phenylbutyrate), PROCYSBI(®) (cysteamine bitartrate), ACTIMMUNE(®)
        (interferon gamma-1b), BUPHENYL(®) (sodium phenylbutyrate) and
        QUINSAIR(®) (levofloxacin), generated $169 million of sales in the
        first quarter.

Established Products

    --  Our established products, which consist of EPOGEN(®) (epoetin alfa),
        Aranesp(®) (darbepoetin alfa), Parsabiv(®) (etelcalcetide) and
        Neulasta(®) (pegfilgrastim), generated $613 million of sales. Sales
        decreased 19% year-over-year for the first quarter, driven by
        unfavorable changes to estimated sales deductions and volume declines.
        In the aggregate, we expect the year-over-year volume declines for this
        portfolio of products to continue.

Product Sales Detail by Product and Geographic Region


                                          
              $Millions, except percentages                                   
              
                Q1 '24                                                                Q1 '23                                 YOY  


                                                                                                              US                                 ROW                                 TOTAL                                 TOTAL                                  TOTAL



              Repatha(R)                                                                                   $273                                 $244                                   $517                                    $388                                   33 %



              Prolia(R)                                                                                     657                                  342                                    999                                     927                                    8 %



              EVENITY(R)                                                                                    236                                  106                                    342                                     254                                   35 %



              BLINCYTO(R)                                                                                   153                                   91                                    244                                     194                                   26 %



              Vectibix(R)                                                                                   120                                  127                                    247                                     233                                    6 %



              KYPROLIS(R)                                                                                   234                                  142                                    376                                     358                                    5 %



              LUMAKRAS(R)/LUMYKRAS(TM)                                                                       53                                   29                                     82                                      74                                   11 %



              XGEVA(R)                                                                                      366                                  195                                    561                                     536                                    5 %



              Nplate(R)                                                                                     190                                  127                                    317                                     362                                 (12 %)



              MVASI(R)                                                                                      105                                   97                                    202                                     202                                    - %



              TEZSPIRE(R)                                                                                   173                                                                        173                                      96                                   80 %



              Otezla(R)                                                                                     293                                  101                                    394                                     392                                    1 %



              Enbrel(R)                                                                                     561                                    6                                    567                                     579                                  (2 %)



              AMJEVITA(R)/AMGEVITA(TM)                                                                       30                                  138                                    168                                     164                                    2 %



              TEPEZZA(R)**                                                                                  419                                    5                                    424                                                                           N/A



              KRYSTEXXA(R)**                                                                                235                                                                        235                                                                           N/A



              UPLIZNA(R)**                                                                                   70                                   10                                     80                                                                           N/A



              TAVNEOS(R)                                                                                     45                                    6                                     51                                      23                              *



              Ultra rare products**                                                                         166                                    3                                    169                                                                           N/A



              EPOGEN(R)                                                                                      41                                                                         41                                      60                                 (32 %)



              Aranesp(R)                                                                                    100                                  249                                    349                                     355                                  (2 %)



              Parsabiv(R)                                                                                    65                                   40                                    105                                      91                                   15 %



              Neulasta(R)                                                                                    87                                   31                                    118                                     249                                 (53 %)



              Other products***                                                                             301                                   56                                    357                                     309                                   16 %



              Total product sales                                                                        $4,973                               $2,145                                 $7,118                                  $5,846                                   22 %




    *Change in excess of 100%



              **Horizon-acquired products, and the Ultra rare products consist of RAVICTI(R), PROCYSBI(R), ACTIMMUNE(R), BUPHENYL(R), and QUINSAIR(R)


               ***Consists of (i) KANJINTI(R), Aimovig(R), RIABNI(R), Corlanor(R), NEUPOGEN(R), AVSOLA(R), IMLYGIC(R), Sensipar(R)/Mimpara(TM), BEKEMV(TM), and WEZLANA(TM)/WEZENLA(TM), where Biosimilars total $176 million in Q1 '24 and $121 million in Q1 '23; and (ii) Horizon-
                acquired products including RAYOS(R), PENNSAID(R), and DUEXIS(R)



              N/A = not applicable

Operating Expense, Operating Margin and Tax Rate Analysis

On a GAAP basis:

    --  Total Operating Expenses increased 54%. Cost of Sales as a percentage of
        product sales increased 15.6 percentage points driven by higher
        amortization expense from Horizon acquisition-related assets and, to a
        lesser extent, higher profit share and royalty expense, partially offset
        by the Puerto Rico excise tax. Research & Development (R&D) expenses
        increased 27% due to higher spend in later-stage clinical programs and
        marketed product support, including Horizon-acquired programs. Selling,
        General & Administrative (SG&A) expenses increased 44% primarily driven
        by commercial expenses related to Horizon-acquired products, general and
        administrative expenses, and acquisition-related costs. Other operating
        expenses consisted primarily of a net impairment charge for an
        in-process R&D asset and changes in contingent consideration
        liabilities, both related to our Teneobio, Inc. acquisition from 2021.
    --  Operating Margin as a percentage of product sales decreased 19.0
        percentage points in the first quarter to 13.9%.
    --  Tax Rate decreased 83.7 percentage points primarily due to the GAAP net
        loss described above and the change in earnings mix as a result of the
        inclusion of the Horizon business.

On a non-GAAP basis:

    --  Total Operating Expenses increased 33%. Cost of Sales as a percentage of
        product sales increased 1.4 percentage points driven by higher profit
        share and royalty expense, partially offset by the Puerto Rico excise
        tax. R&D expenses increased 26% due to higher spend in later-stage
        clinical programs and marketed product support, including
        Horizon-acquired programs. SG&A expenses increased 40%, primarily driven
        by commercial expenses related to Horizon-acquired products, and general
        and administrative expenses.
    --  Operating Margin as a percentage of product sales decreased 5.1
        percentage points in the first quarter to 43.2%.
    --  Tax Rate decreased 2.4 percentage points primarily due to the change in
        earnings mix as a result of the inclusion of the Horizon business and
        net favorable items in the quarter.

                                       
         $Millions, except percentages          
     
     GAAP                               
          
      Non-GAAP


                                                                             Q1 '24        Q1 '23           YOY          Q1 '24                 Q1 '23      YOY  



     Cost of Sales                                                          $3,200         $1,720              86 %       $1,340                  $1,016        32 %



     % of product sales                                                     45.0 %        29.4 %         15.6 pts       18.8 %                 17.4 %    1.4 pts



     Research & Development                                                 $1,343         $1,058              27 %       $1,317                  $1,044        26 %



     % of product sales                                                     18.9 %        18.1 %          0.8 pts       18.5 %                 17.9 %    0.6 pts



     Selling, General & Administrative                                      $1,808         $1,258              44 %       $1,712                  $1,224        40 %



     % of product sales                                                     25.4 %        21.5 %          3.9 pts       24.1 %                 20.9 %    3.2 pts



     Other                                                                    $105           $148            (29 %) 
     $        -   
             $        -        N/A



     
                Total Operating Expenses                                  $6,456         $4,184              54 %       $4,369                  $3,284        33 %





     Operating Margin



     operating income as % of product sales                                 13.9 %        32.9 %  (19.0)                43.2 %                 48.3 %      (5.1)
                                                                                                    pts                                                       pts





     
                Tax Rate                                                (66.2) %        17.5 %           (83.7)       15.4 %                 17.8 %      (2.4)
                                                                                                             pts                                              pts





     pts: percentage points



     N/A = not applicable

Cash Flow and Balance Sheet

    --  The Company generated $0.5 billion of free cash flow in the first
        quarter of 2024 versus $0.7 billion in the first quarter of 2023. This
        decrease was driven by an $800 million tax deposit, partially offset by
        timing of working capital items.
    --  The Company's first quarter 2024 dividend of $2.25 per share was
        declared on December 12, 2023, and was paid on March 7, 2024, to all
        stockholders of record as of February 16, 2024, representing a 6%
        increase from this same period in 2023.
    --  Cash and investments totaled $9.7 billion and debt outstanding totaled
        $64.0 billion as of March 31, 2024.

                                
              $Billions, except shares     Q1 '24     Q1 '23      YOY  



     Operating Cash Flow                                                 $0.7        $1.1      $(0.4)



     Capital Expenditures                                                $0.2        $0.3      $(0.1)



     Free Cash Flow                                                      $0.5        $0.7      $(0.3)



     Dividends Paid                                                      $1.2        $1.1        $0.1



     Share Repurchases                                             
     $      - 
     $      -  
     $     -


      Average Diluted Shares (millions)                                    536         538         (2)





     Note: Numbers may not add due to rounding


                                  
              $Billions 3/31/24 12/31/23  YTD  



     Cash and Investments                                $9.7     $10.9  $(1.2)



     Debt Outstanding                                   $64.0     $64.6  $(0.6)





     Note: Numbers may not add due to rounding

2024 Guidance

For the full year 2024, the Company now expects:

    --  Total revenues in the range of $32.5 billion to $33.8 billion.
    --  On a GAAP basis, EPS in the range of $7.15 to $8.40, and a tax rate in
        the range of 9.5% to 11.0%.
    --  On a non-GAAP basis, EPS in the range of $19.00 to $20.20, and a tax
        rate in the range of 15.0% to 16.0%.
    --  Capital expenditures to be approximately $1.1 billion.
    --  Share repurchases not to exceed $500 million.

First Quarter Product and Pipeline Update

The Company provided the following updates on selected product and pipeline programs:

General Medicine
MariTide (maridebart cafraglutide, AMG 133)

    --  A Phase 2 study of MariTide, a multispecific molecule that inhibits the
        gastric inhibitory polypeptide receptor (GIPR) and activates the
        glucagon like peptide 1 (GLP-1) receptor, in adults with overweight or
        obesity with or without type 2 diabetes mellitus is ongoing, with
        topline data anticipated in late 2024.
    --  Planning for a comprehensive Phase 3 program across multiple indications
        remains on track.

AMG 786

    --  A Phase 1 study of AMG 786, a small molecule obesity program, is
        complete.

Olpasiran (AMG 890)

    --  The Ocean(a)-Outcomes trial, a Phase 3 cardiovascular outcomes study of
        olpasiran in patients with atherosclerotic cardiovascular disease and
        elevated Lp(a), is fully enrolled. Olpasiran is a potentially
        best-in-class small interfering ribonucleic acid (siRNA) molecule that
        reduces lipoprotein(a) (Lp(a)) synthesis in the liver.

Repatha

    --  EVOLVE-MI, a Phase 4 study of Repatha administered within 10 days of an
        acute myocardial infarction to reduce the risk of cardiovascular (CV)
        events, continues to enroll patients.
    --  VESALIUS-CV, a Phase 3 CV outcomes study of Repatha in patients at high
        CV risk without prior myocardial infarction or stroke, is ongoing.
    --  In April, data were presented from the FOURIER trial demonstrating that
        intensive LDL-C lowering with Repatha may lead to greater relative and
        absolute CV event reduction in patients with autoimmune or inflammatory
        diseases.
    --  In April, data were presented from the FOURIER and FOURIER-OLE studies
        demonstrating that elderly patients (>=75 years) with atherosclerotic
        cardiovascular disease derived similar to greater CV benefit compared to
        younger patients (<75 years) with early initiation of Repatha and up to
        8.6 years of treatment with no significant safety concerns.

Oncology
Tarlatamab (AMG 757)

    --  The U.S. Food and Drug Administration (FDA) review of the Biologics
        License Application (BLA) for tarlatamab, a first-in-class
        investigational delta-like ligand 3 (DLL3) targeting BiTE(®)
        (bispecific T-cell engager) molecule in previously treated small cell
        lung cancer (SCLC) continues under priority review with a Prescription
        Drug User Fee Act (PDUFA) date of June 12, 2024. Additional regulatory
        submissions are underway or complete in countries outside of the U.S.
    --  Advancing a comprehensive global clinical development program in SCLC:
        --  DeLLphi-304, a Phase 3 study comparing tarlatamab with standard of
            care chemotherapy in second-line SCLC, continues to enroll patients.
        --  DeLLphi-305, a Phase 3 study comparing tarlatamab and durvalumab
            with durvalumab alone in first-line, extensive-stage SCLC, was
            initiated.
        --  DeLLphi-306, a Phase 3 study comparing tarlatamab with placebo
            following concurrent chemoradiation therapy in limited-stage SCLC is
            enrolling patients.
        --  DeLLphi-300, a Phase 1 study of tarlatamab in relapsed/refractory
            SCLC is ongoing.
        --  DeLLphi-302, a Phase 1b study of tarlatamab in combination with AMG
            404, an anti-programmed cell death protein 1 (PD1) monoclonal
            antibody, in second-line or later SCLC, is ongoing.
        --  DeLLphi-303, a Phase 1b study of tarlatamab in combination with
            standard of care in first-line SCLC, continues to enroll patients.
    --  DeLLpro-300, a Phase 1b study of tarlatamab in de novo or
        treatment-emergent neuroendocrine prostate cancer, is ongoing. Initial
        data from this study will be presented at the American Society of
        Clinical Oncology (ASCO) annual meeting in June.
    --  Additional data from the DeLLphi-301 Phase 2 trial, highlighting the
        efficacy and safety of tarlatamab analyzed by the presence of brain
        metastasis, will be presented at the ASCO annual meeting in June.

BLINCYTO

    --  The FDA review of the supplemental BLA for BLINCYTO in early-stage,
        CD19-positive B-cell precursor acute lymphoblastic leukemia (B-ALL)
        continues under priority review, with a PDUFA date of June 21, 2024.
        Additional regulatory submissions are underway or complete in countries
        outside of the U.S.
    --  Golden Gate, a Phase 3 study of BLINCYTO alternating with low-intensity
        chemotherapy in older adults with newly diagnosed Philadelphia
        chromosome-negative (Ph-) B-ALL, continues to enroll patients.
    --  The Company is planning to advance blinatumomab subcutaneous
        administration through a registration enabling study, with initiation
        anticipated H2 2024 to H1 2025.
    --  A Phase 1/2 study of subcutaneous blinatumomab in adults with relapsed
        or refractory Ph- B-ALL continues to enroll patients.

Xaluritamig (AMG 509)

    --  A Phase 1 monotherapy dose-expansion study of xaluritamig, a
        first-in-class bispecific T-cell engager targeting six-transmembrane
        epithelial antigen of prostate 1 (STEAP1) in metastatic castrate
        resistant prostate cancer has completed initial enrollment in the
        monotherapy portion of the study and continues to enroll subjects to
        explore reduced monitoring after treatment administration. An outpatient
        treatment cohort has also been initiated to improve administration
        convenience.
    --  A Phase 1 combination with abiraterone or enzalutamide continues to
        enroll patients in the dose-escalation phase, with plans to initiate
        expansion cohorts.
    --  Two additional Phase 1 studies of xaluritamig to evaluate preliminary
        efficacy and safety in patients with early prostate cancer are planned.

AMG 193

    --  A Phase 1/1b/2 study of AMG 193, a first-in-class small molecule
        methylthioadenosine (MTA)-cooperative protein arginine methyltransferase
        5 (PRMT5) inhibitor, continues to enroll patients with advanced
        methylthioadenosine phosphorylase (MTAP)-null solid tumors in the
        dose-expansion portion of the study.
    --  A Phase 1b study of AMG 193 alone or in combination with other therapies
        in patients with advanced MTAP-null thoracic tumors was initiated.
    --  A Phase 1b study of AMG 193 in combination with other therapies in
        patients with advanced MTAP-null gastrointestinal, biliary tract, or
        pancreatic cancers was initiated.
    --  A Phase 1/2 study of AMG 193 in combination with IDE397, an
        investigational methionine adenosyltransferase 2A (MAT2A) inhibitor, is
        enrolling patients.

Nplate

    --  A Phase 3 study of Nplate in chemotherapy-induced thrombocytopenia in
        gastrointestinal, pancreatic, or colorectal malignancies is fully
        enrolled. Data readout is anticipated in H2 2024.

LUMAKRAS/LUMYKRAS

    --  A Phase 3 study of LUMAKRAS in combination with Vectibix and FOLFIRI in
        first-line KRAS G12C-mutated CRC is enrolling patients.
    --  A U.S. regulatory submission for the Phase 3 CodeBreaK 300 trial is on
        track for H1 2024. This study evaluated two doses of LUMAKRAS (960 mg or
        240 mg) in combination with Vectibix in patients with chemorefractory
        KRAS G12C-mutated metastatic colorectal cancer (CRC).
    --  Overall survival (OS) data from the Phase 3 CodeBreaK 300 study of
        LUMAKRAS plus Vectibix vs. investigator's choice of therapy in KRAS
        G12C-mutated metastatic CRC will be presented at the ASCO annual meeting
        in June.
    --  A Phase 3 study of LUMAKRAS plus chemotherapy vs. pembrolizumab plus
        chemotherapy in first-line KRAS G12C-mutated and programmed cell death
        protein ligand-1 (PD-L1) negative advanced non-small cell lung cancer
        (NSCLC) is enrolling patients.
    --  Regulatory review by the European Medicines Agency (EMA) of the
        CodeBreaK 200 Phase 3 trial of adults with previously treated locally
        advanced or metastatic KRAS G12C-mutated NSCLC along with data from the
        Phase 2 dose-comparison substudy is ongoing.
    --  Updated analysis from the CodeBreaK 101 trial investigating LUMAKRAS
        plus carboplatin and pemetrexed in KRAS G12C advanced NSCLC will be
        presented at the ASCO annual meeting in June.

Bemarituzumab

    --  FORTITUDE-101, a Phase 3 study of bemarituzumab, a first-in-class
        fibroblast growth factor receptor 2b (FGFR2b) targeting monoclonal
        antibody, plus chemotherapy in first-line gastric cancer, continues to
        enroll patients.
    --  FORTITUDE-102, a Phase 1b/3 study of bemarituzumab plus chemotherapy and
        nivolumab in first-line gastric cancer, continues to enroll patients in
        the Phase 3 portion of the study.
    --  FORTITUDE-103, a Phase 1b/2 study of bemarituzumab plus oral
        chemotherapy regimens with or without nivolumab in first-line gastric
        cancer, continues to enroll patients.
    --  FORTITUDE-301, a Phase 1b/2 basket study of bemarituzumab monotherapy in
        solid tumors with FGFR2b overexpression, is ongoing.

Inflammation
TEZSPIRE

    --  A Phase 2 study of TEZSPIRE in chronic obstructive pulmonary disease
        (COPD) is complete. Overall, TEZSPIRE numerically reduced the annualized
        rate of moderate or severe COPD exacerbations vs. placebo by 17% (90%
        CI: -6, 36; p=0.1042). Of note, more reductions were observed in a
        subgroup of patients with baseline BEC >= 150 cells/ L (37% [95% CI: 7,
        57]). The trend in reduction was greater in a small number of subjects
        with BEC >= 300 cells/µL. Data will be presented at the American
        Thoracic Society Conference (ATS) later this month.
    --  A Phase 3 study of TEZSPIRE in chronic rhinosinusitis with nasal polyps
        is fully enrolled. Primary analysis is anticipated in H2 2024.
    --  In severe asthma, the WAYFINDER Phase 3b study is fully enrolled. The
        PASSAGE Phase 4 real-world effectiveness study and the SUNRISE Phase 3
        study continue to enroll patients.
    --  A Phase 3 study of TEZSPIRE in eosinophilic esophagitis continues to
        enroll patients.

Rocatinlimab (AMG 451/KHK4083)

    --  The ROCKET Phase 3 program, evaluating rocatinlimab, a first in class
        monoclonal antibody targeting OX40, in moderate to severe atopic
        dermatitis, is composed of eight studies enrolling adult and adolescent
        patients. To date, over 2,800 patients have been enrolled in the ROCKET
        program with three studies having completed enrollment.
    --  The Phase 3 HORIZON study (part of the ROCKET program), evaluating
        rocatinlimab monotherapy vs. placebo in adults with moderate to severe
        atopic dermatitis, is fully enrolled. Data readout is anticipated in H2
        2024.
    --  A Phase 2 study of rocatinlimab in moderate to severe asthma was
        initiated.
    --  A Phase 3 study of rocatinlimab in prurigo nodularis will be initiated
        in H2 2024.

Otezla

    --  In April, the FDA granted pediatric exclusivity and approved Otezla for
        the treatment of pediatric patients 6 years of age and older and
        weighing at least 20 kg with moderate to severe plaque psoriasis who are
        candidates for phototherapy or systemic therapy. This is the first
        pediatric indication for Otezla.
    --  In March, data were presented from:
        --  the SPROUT Phase 3 study, where 52 weeks of treatment with Otezla
            demonstrated sustained efficacy and safety in pediatric patients
            with moderate to severe plaque psoriasis.
        --  a Phase 3 study in Japanese Palmoplantar Pustulosis (PPP) patients
            where 16 weeks of treatment with Otezla demonstrated statistical
            significance for the primary efficacy endpoint, PPPASI 50 response,
            and for all secondary endpoints. Otezla improved disease severity,
            symptoms, and quality of life, with no new safety signals
            identified. These data will be submitted to regulators in Japan.

Efavaleukin alfa (AMG 592)

    --  A Phase 2b study of efavaleukin alfa, an interleukin 2 (IL 2) mutein Fc
        fusion protein, in ulcerative colitis continues to enroll patients.

Ordesekimab (AMG 714/PRV-015)

    --  A Phase 2b study of AMG 714, a monoclonal antibody that binds
        interleukin-15, in nonresponsive celiac disease has completed
        enrollment.

AMG 104 (AZD8630)

    --  The Company plans to present data from the Phase 1 study of AMG 104, an
        inhaled anti-thymic stromal lymphopoietin (TSLP) fragment
        antigen-binding (Fab), in healthy volunteers and patients with asthma,
        at ATS later this month.

Rare Disease
TAVNEOS

    --  A Phase 3, open-label, uncontrolled single-arm study to evaluate the
        efficacy, pharmacokinetics, and safety of TAVNEOS in combination with
        Rituximab or a cyclophosphamide-containing regimen in children from 6
        years to < 18 years of age with active ANCA-associated vasculitis will
        be initiated in H2 2024.

TEPEZZA

    --  Regulatory review of the New Drug Application (NDA) for TEPEZZA in Japan
        continues.
    --  Regulatory submissions for TEPEZZA were completed in Australia, Canada,
        Great Britain and the European Medicines Agency (EMA).
    --  A Phase 3 study of TEPEZZA in Japan for chronic or low clinical activity
        score TED continues to enroll patients.
    --  A Phase 3 study evaluating the subcutaneous route of administration of
        TEPEZZA in patients with TED was initiated.

KRYSTEXXA

    --  The Phase 4 AGILE study of KRYSTEXXA with methotrexate evaluating a
        shorter infusion duration was completed. At the 60-minute infusion
        duration, 67.2% of patients (78 of 116) achieved a response. The safety
        profile was in line with the current administration of KRYSTEXXA with
        methotrexate over no less than 120 minutes. Detailed data will be
        presented at a future medical conference.

UPLIZNA

    --  A Phase 3 study of UPLIZNA in myasthenia gravis is fully enrolled. Data
        readout is anticipated in H2 2024.
    --  A Phase 3 study of UPLIZNA for the prevention of flare in immunoglobulin
        G4- (IgG4) related disease is fully enrolled. Data readout is
        anticipated in H2 2024.

Dazodalibep

    --  Two Phase 3 studies of dazodalibep, a CD40 (cluster of differentiation
        40) ligand inhibitor fusion protein, in Sjögren's disease are enrolling
        patients. The first study is in patients with moderate to severe
        systemic disease activity, and the second study is in patients with
        moderate to severe symptomatic burden and low to no systemic disease
        activity.
    --  A manuscript based on data from the Phase 2 Dazodalibep Sjogren's
        disease study has been accepted for publication in Nature Medicine.

Daxdilimab

    --  A Phase 2 study of daxdilimab, a fully human monoclonal antibody
        targeting immunoglobulin-like transcript 7 (ILT7), in moderate to severe
        active primary discoid lupus erythematosus refractory to standard of
        care is enrolling patients.
    --  A Phase 2 study of daxdilimab in dermatomyositis and antisynthetase
        inflammatory myositis is enrolling patients.

Fipaxalparant (formerly AMG 670/HZN 825)

    --  A Phase 2 study of fipaxalparant, a lysophosphatidic acid receptor 1
        (LPAR1) antagonist, in idiopathic pulmonary fibrosis has completed
        enrollment. Data readout is anticipated in H2 2024.
    --  A Phase 2 study of fipaxalparant in diffuse cutaneous systemic sclerosis
        is enrolling patients.

Biosimilars

    --  The clinical comparative study portion of a randomized, double-blind
        pivotal study evaluating pharmacokinetic (PK) similarity of ABP 206
        compared with OPDIVO(®) (nivolumab) in resected stage III or stage IV
        melanoma patients in the adjuvant setting is enrolling patients.
    --  The Company initiated a randomized, double-blind Phase 3 study to
        compare efficacy, pharmacokinetics, safety, and immunogenicity between
        ABP 234 and Keytruda(®) (pembrolizumab) in subjects with advanced or
        metastatic non-squamous non-small cell lung cancer.

TEZSPIRE is being developed in collaboration with AstraZeneca.
AMG 104 is being developed in collaboration with AstraZeneca
Rocatinlimab, formerly AMG 451/KHK4083, is being developed in collaboration with Kyowa Kirin.
Ordesekimab, formerly AMG 714 and also known as PRV-015, is being developed in collaboration with Provention Bio, a Sanofi Company. For the purposes of the collaboration, Provention Bio conducts a clinical trial and leads certain development and regulatory activities for the program.
Xaluritamig, formerly AMG 509, is being developed pursuant to a research collaboration with Xencor, Inc.
IDE397 is an investigational MAT2A inhibitor from IDEAYA Biosciences.
OPDIVO is a registered trademark of Bristol-Myers Squibb Company.
KEYTRUDA is a registered trademark of Merck & Co., Inc.

Non-GAAP Financial Measures

In this news release, management has presented its operating results for the first quarters of 2024 and 2023, in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and on a non-GAAP basis. In addition, management has presented its full year 2024 EPS and tax guidance in accordance with GAAP and on a non-GAAP basis. These non-GAAP financial measures are computed by excluding certain items related to acquisitions, divestitures, restructuring and certain other items from the related GAAP financial measures. Management has presented Free Cash Flow (FCF), which is a non-GAAP financial measure, for the first quarters of 2024 and 2023. FCF is computed by subtracting capital expenditures from operating cash flow, each as determined in accordance with GAAP.

The Company believes that its presentation of non-GAAP financial measures provides useful supplementary information to and facilitates additional analysis by investors. The Company uses certain non-GAAP financial measures to enhance an investor's overall understanding of the financial performance and prospects for the future of the Company's normal and recurring business activities by facilitating comparisons of results of normal and recurring business operations among current, past and future periods. The Company believes that FCF provides a further measure of the Company's liquidity.

The Company uses the non-GAAP financial measures set forth in the news release in connection with its own budgeting and financial planning internally to evaluate the performance of the business, including to allocate resources and to evaluate results relative to incentive compensation targets. The non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

About Amgen

Amgen discovers, develops, manufactures and delivers innovative medicines to help millions of patients in their fight against some of the world's toughest diseases. More than 40 years ago, Amgen helped to establish the biotechnology industry and remains on the cutting-edge of innovation, using technology and human genetic data to push beyond what's known today. Amgen is advancing a broad and deep pipeline that builds on its existing portfolio of medicines to treat cancer, heart disease, osteoporosis, inflammatory diseases and rare diseases.

In 2024, Amgen was named one of the "World's Most Innovative Companies" by Fast Company and one of "America's Best Large Employers" by Forbes, among other external recognitions. Amgen is one of the 30 companies that comprise the Dow Jones Industrial Average(®), and it is also part of the Nasdaq-100 Index(®), which includes the largest and most innovative non-financial companies listed on the Nasdaq Stock Market based on market capitalization.

For more information, visit Amgen.com and follow Amgen on X, LinkedIn, Instagram, TikTok, YouTube and Threads.?

Forward-Looking Statements

This news release contains forward-looking statements that are based on the current expectations and beliefs of Amgen. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including any statements on the outcome, benefits and synergies of collaborations, or potential collaborations, with any other company (including BeiGene, Ltd. or Kyowa Kirin Co., Ltd.), the performance of Otezla(®) (apremilast) (including anticipated Otezla sales growth and the timing of non-GAAP EPS accretion), our acquisitions of Teneobio, Inc., ChemoCentryx, Inc., or Horizon (including the prospective performance and outlook of Horizon's business, performance and opportunities and any potential strategic benefits, synergies or opportunities expected as a result of such acquisition, and any projected impacts from the Horizon acquisition on our acquisition-related expenses going forward), as well as estimates of revenues, operating margins, capital expenditures, cash, other financial metrics, expected legal, arbitration, political, regulatory or clinical results or practices, customer and prescriber patterns or practices, reimbursement activities and outcomes, effects of pandemics or other widespread health problems on our business, outcomes, progress, and other such estimates and results. Forward-looking statements involve significant risks and uncertainties, including those discussed below and more fully described in the Securities and Exchange Commission reports filed by Amgen, including our most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and current reports on Form 8-K. Unless otherwise noted, Amgen is providing this information as of the date of this news release and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

No forward-looking statement can be guaranteed and actual results may differ materially from those we project. Our results may be affected by our ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments involving current and future products, sales growth of recently launched products, competition from other products including biosimilars, difficulties or delays in manufacturing our products and global economic conditions. In addition, sales of our products are affected by pricing pressure, political and public scrutiny and reimbursement policies imposed by third-party payers, including governments, private insurance plans and managed care providers and may be affected by regulatory, clinical and guideline developments and domestic and international trends toward managed care and healthcare cost containment. Furthermore, our research, testing, pricing, marketing and other operations are subject to extensive regulation by domestic and foreign government regulatory authorities. We or others could identify safety, side effects or manufacturing problems with our products, including our devices, after they are on the market. Our business may be impacted by government investigations, litigation and product liability claims. In addition, our business may be impacted by the adoption of new tax legislation or exposure to additional tax liabilities. If we fail to meet the compliance obligations in the corporate integrity agreement between us and the U.S. government, we could become subject to significant sanctions. Further, while we routinely obtain patents for our products and technology, the protection offered by our patents and patent applications may be challenged, invalidated or circumvented by our competitors, or we may fail to prevail in present and future intellectual property litigation. We perform a substantial amount of our commercial manufacturing activities at a few key facilities, including in Puerto Rico, and also depend on third parties for a portion of our manufacturing activities, and limits on supply may constrain sales of certain of our current products and product candidate development. An outbreak of disease or similar public health threat, such as COVID-19, and the public and governmental effort to mitigate against the spread of such disease, could have a significant adverse effect on the supply of materials for our manufacturing activities, the distribution of our products, the commercialization of our product candidates, and our clinical trial operations, and any such events may have a material adverse effect on our product development, product sales, business and results of operations. We rely on collaborations with third parties for the development of some of our product candidates and for the commercialization and sales of some of our commercial products. In addition, we compete with other companies with respect to many of our marketed products as well as for the discovery and development of new products. Discovery or identification of new product candidates or development of new indications for existing products cannot be guaranteed and movement from concept to product is uncertain; consequently, there can be no guarantee that any particular product candidate or development of a new indication for an existing product will be successful and become a commercial product. Further, some raw materials, medical devices and component parts for our products are supplied by sole third-party suppliers. Certain of our distributors, customers and payers have substantial purchasing leverage in their dealings with us. The discovery of significant problems with a product similar to one of our products that implicate an entire class of products could have a material adverse effect on sales of the affected products and on our business and results of operations. Our efforts to collaborate with or acquire other companies, products or technology, and to integrate the operations of companies or to support the products or technology we have acquired, may not be successful. There can be no guarantee that we will be able to realize any of the strategic benefits, synergies or opportunities arising from the Horizon acquisition, and such benefits, synergies or opportunities may take longer to realize than expected. We may not be able to successfully integrate Horizon, and such integration may take longer, be more difficult or cost more than expected. A breakdown, cyberattack or information security breach of our information technology systems could compromise the confidentiality, integrity and availability of our systems and our data. Our stock price is volatile and may be affected by a number of events. Our business and operations may be negatively affected by the failure, or perceived failure, of achieving our environmental, social and governance objectives. The effects of global climate change and related natural disasters could negatively affect our business and operations. Global economic conditions may magnify certain risks that affect our business. Our business performance could affect or limit the ability of our Board of Directors to declare a dividend or our ability to pay a dividend or repurchase our common stock. We may not be able to access the capital and credit markets on terms that are favorable to us, or at all.

###

CONTACT: Amgen, Thousand Oaks
Jessica Akopyan, 805-440-5721 (media)
Justin Claeys, 805-313-9775 (investors)



     
                Amgen Inc.

       Consolidated Statements of (Loss) Income - GAAP

       (In millions, except per-share data)

       (Unaudited)




                                                                                            Three months ended

                                                                                            March 31,


                                                                                   2024    2023



     Revenues:



     Product sales                                                              $7,118  $5,846



     Other revenues                                                                329     259



     Total revenues                                                              7,447   6,105





     Operating expenses:



     Cost of sales                                                               3,200   1,720



     Research and development                                                    1,343   1,058



     Selling, general and administrative                                         1,808   1,258



     Other                                                                         105     148



     Total operating expenses                                                    6,456   4,184





     Operating income                                                              991   1,921





     Other income (expense):



     Interest expense, net                                                       (824)  (543)



     Other (expense) income, net                                                 (235)  2,064





     (Loss) income before income taxes                                            (68)  3,442





     Provision for income taxes                                                     45     601





     Net (loss) income                                                          $(113) $2,841





     (Loss) earnings per share:



     Basic                                                                     $(0.21)  $5.32



     Diluted                                                                   $(0.21)  $5.28





     Weighted-average shares used in calculation of (loss) earnings per share:



     Basic                                                                         536     534



     Diluted                                                                       536     538



     
                Amgen Inc.

       Consolidated Balance Sheets - GAAP

       (In millions)




                                                         March 31,  December 31,


                                                               2024          2023


                                                        (Unaudited)



     
                Assets



     Current assets:



     Cash and cash equivalents                              $9,708       $10,944



     Trade receivables, net                                  6,776         7,268



     Inventories                                             8,724         9,518



     Other current assets                                    2,821         2,602



     Total current assets                                   28,029        30,332





     Property, plant and equipment, net                      6,002         5,941



     Intangible assets, net                                 31,372        32,641



     Goodwill                                               18,570        18,629



     Other noncurrent assets                                 9,007         9,611



     Total assets                                          $92,980       $97,154





     
                Liabilities and Stockholders' Equity



     Current liabilities:



     Accounts payable and accrued liabilities              $15,755       $16,949



     Current portion of long-term debt                       3,959         1,443



     Total current liabilities                              19,714        18,392





     Long-term debt                                         60,061        63,170



     Long-term deferred tax liabilities                      1,862         2,354



     Long-term tax liabilities                               3,964         4,680



     Other noncurrent liabilities                            2,357         2,326



     Total stockholders' equity                              5,022         6,232



     Total liabilities and stockholders' equity            $92,980       $97,154





     Shares outstanding                                        536           535



     
                Amgen Inc.

       GAAP to Non-GAAP Reconciliations

       (Dollars in millions)

       (Unaudited)




                                                                                                                   Three months ended

                                                                                                                   March 31,


                                                                                                              2024    2023



     
                GAAP cost of sales                                                                       $3,200  $1,720



     
                Adjustments to cost of sales:



     Acquisition-related expenses (a)                                                                     (1,860)  (669)



     Certain net charges pursuant to our restructuring and cost savings initiatives                             -   (35)



     
                Total adjustments to cost of sales                                                      (1,860)  (704)



     
                Non-GAAP cost of sales                                                                   $1,340  $1,016





     
                GAAP cost of sales as a percentage of product sales                                      45.0 % 29.4 %



     Acquisition-related expenses (a)                                                                      (26.2) (11.4)



     Certain net charges pursuant to our restructuring and cost savings initiatives                           0.0   (0.6)



     
                Non-GAAP cost of sales as a percentage of product sales                                  18.8 % 17.4 %





     
                GAAP research and development expenses                                                   $1,343  $1,058



     
                Adjustments to research and development expenses:



     Acquisition-related expenses (b)                                                                        (26)   (14)



     
                Non-GAAP research and development expenses                                               $1,317  $1,044





     
                GAAP research and development expenses as a percentage of product sales                  18.9 % 18.1 %



     Acquisition-related expenses (b)                                                                       (0.4)  (0.2)



     
                Non-GAAP research and development expenses as a percentage of product sales              18.5 % 17.9 %





     
                GAAP selling, general and administrative expenses                                        $1,808  $1,258



     
                Adjustments to selling, general and administrative expenses:



     Acquisition-related expenses (b)                                                                        (96)   (34)



     
                Non-GAAP selling, general and administrative expenses                                    $1,712  $1,224





     
                GAAP selling, general and administrative expenses as a percentage of product sales       25.4 % 21.5 %



     Acquisition-related expenses (b)                                                                       (1.3)  (0.6)



     
                Non-GAAP selling, general and administrative expenses as a percentage of product sales   24.1 % 20.9 %





     
                GAAP operating expenses                                                                  $6,456  $4,184



     
                Adjustments to operating expenses:



     Adjustments to cost of sales                                                                         (1,860)  (704)



     Adjustments to research and development expenses                                                        (26)   (14)



     Adjustments to selling, general and administrative expenses                                             (96)   (34)



     Certain net charges pursuant to our restructuring and cost savings initiatives (c)                         1   (141)



     Certain other expenses (d)                                                                             (106)    (7)



     
                Total adjustments to operating expenses                                                 (2,087)  (900)



     
                Non-GAAP operating expenses                                                              $4,369  $3,284






                                                                                                                   Three months ended

                                                                                                                   March 31,


                                                                                                              2024    2023



     
                GAAP operating income                                                                      $991  $1,921



     Adjustments to operating expenses                                                                      2,087     900



     
                Non-GAAP operating income                                                                $3,078  $2,821





     
                GAAP operating income as a percentage of product sales                                   13.9 % 32.9 %



     Adjustments to cost of sales                                                                            26.2    12.0



     Adjustments to research and development expenses                                                         0.4     0.2



     Adjustments to selling, general and administrative expenses                                              1.3     0.6



     Certain net charges pursuant to our restructuring and cost savings initiatives (c)                       0.0     2.5



     Certain other expenses (d)                                                                               1.4     0.1



     
                Non-GAAP operating income as a percentage of product sales                               43.2 % 48.3 %





     
                GAAP interest expense, net                                                               $(824) $(543)



     
                Adjustments to interest expense, net:



     Interest expense on acquisition-related debt (e)                                                           -    123



     
                Non-GAAP interest expense, net                                                           $(824) $(420)





     
                GAAP other (expense) income, net                                                         $(235) $2,064



     
                Adjustments to other (expense) income, net



     Interest income and other expenses on acquisition-related debt (e)                                         -    (6)



     Net losses (gains) from equity investments (f)                                                           510 (1,853)



     
                Total adjustments to other (expense) income, net                                            510 (1,859)



     
                Non-GAAP other income, net                                                                 $275    $205





     
                GAAP (loss) income before income taxes                                                    $(68) $3,442



     
                Adjustments to (loss) income before income taxes:



     Adjustments to operating expenses                                                                      2,087     900



     Adjustments to interest expense, net                                                                       -    123



     Adjustments to other (expense) income, net                                                               510 (1,859)



     
                Total adjustments to (loss) income before income taxes                                    2,597   (836)



     
                Non-GAAP income before income taxes                                                      $2,529  $2,606





     
                GAAP provision for income taxes                                                             $45    $601



     
                Adjustments to provision for income taxes:



     Income tax effect of the above adjustments (g)                                                           359   (117)



     Other income tax adjustments (h)                                                                        (15)   (19)



     
                Total adjustments to provision for income taxes                                             344   (136)



     
                Non-GAAP provision for income taxes                                                        $389    $465





     
                GAAP tax as a percentage of income before taxes                                        (66.2) % 17.5 %



     
                Adjustments to provision for income taxes:



     Income tax effect of the above adjustments (g)                                                          82.2     1.0



     Other income tax adjustments (h)                                                                       (0.6)  (0.7)



     
                Total adjustments to provision for income taxes                                            81.6     0.3



     
                Non-GAAP tax as a percentage of income before taxes                                      15.4 % 17.8 %





     
                GAAP net (loss) income                                                                   $(113) $2,841



     
                Adjustments to net (loss) income:



     Adjustments to (loss) income before income taxes, net of the income tax effect                         2,238   (719)



     Other income tax adjustments (h)                                                                          15      19



     
                Total adjustments to net (loss) income                                                    2,253   (700)



     
                Non-GAAP net income                                                                      $2,140  $2,141





     Note: Numbers may not add due to rounding



     
                Amgen Inc.

       GAAP to Non-GAAP Reconciliations

       (In millions, except per-share data)

       (Unaudited)






     The following table presents the computations for GAAP and non-GAAP diluted earnings per share:




                                                                                                              Three months ended                   Three months ended

                                                                                                                March 31, 2024                       March 31, 2023


                                                                                                         GAAP                    Non-GAAP   GAAP                      Non-GAAP



     Net (loss) income                                                                                $(113)                      $2,140  $2,841                         $2,141





     Shares (Denominator):



     Weighted-average shares for basic (loss) earnings per share                                         536                          536     534                            534



     Effect of dilutive securities (i)                                                                     -                           5       4                              4



     Weighted-average shares for diluted (loss) earnings per share (i)                                   536                          541     538                            538





     Diluted (loss) earnings per share                                                               $(0.21)                       $3.96   $5.28                          $3.98



     (a)    The adjustments related primarily to noncash amortization of intangible assets and fair value step-up of
             inventory acquired from business acquisitions.




     (b)    For the three months ended March 31, 2024, the adjustments related primarily to acquisition-related costs
             related to our Horizon acquisition. For the three months ended March 31, 2023, the adjustments related
             primarily to noncash amortization of intangible assets from business acquisitions.




     (c)    For the three months ended March 31, 2023, the adjustments related primarily to separation costs associated
             with our restructuring plan initiated in early 2023.




     (d)    For the three months ended March 31, 2024, the adjustments related primarily to a net impairment charge for
             an in-process R&D asset and changes in contingent consideration liabilities, both related to our
             Teneobio, Inc. acquisition from 2021. For the three months ended March 31, 2023, the adjustments related
             to changes in contingent consideration liabilities.




     (e)    For the three months ended March 31, 2023, the adjustments included (i) interest expense and income on
             senior notes issued in March 2023 and (ii) debt issuance costs and other fees related to our bridge credit
             and term loan credit agreements, incurred prior to the closing of our acquisition of Horizon.




     (f)    For the three months ended March 31, 2024 and 2023, the adjustments related primarily to our BeiGene, Ltd.
             equity fair value adjustment.




     (g) The tax effect of the adjustments between our GAAP and non-GAAP results takes into account the tax
             treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s).
             Generally, this results in a tax impact at the U.S. marginal tax rate for certain adjustments, including
             the majority of amortization of intangible assets and certain gains and losses on our investments in
             equity securities, whereas the tax impact of other adjustments, including the amortization of acquired
             inventory and expenses related to restructuring and cost savings initiatives, depends on whether the
             amounts are deductible in the respective tax jurisdictions and the applicable tax rate(s) in those
             jurisdictions. Due to these factors, the effective tax rate for the adjustments to our GAAP income before
             income taxes for the three months ended March 31, 2024, was 13.8% compared to 14.0% for the corresponding
             period of the prior year.




     (h)    The adjustments related to certain acquisition items, prior period and other items excluded from GAAP
             earnings.




     (i)    During periods of net loss, diluted loss per share is equal to basic loss per share as the anti-dilutive
             effect of potential common shares is disregarded.



     
                Amgen Inc.

       Reconciliations of Cash Flows

       (In millions)

       (Unaudited)




                                                                     Three months ended

                                                                     March 31,


                                                             2024    2023



     Net cash provided by operating activities              $689  $1,064



     Net cash (used in) provided by investing activities   (217)  1,358



     Net cash (used in) provided by financing activities (1,708) 21,509



     (Decrease) increase in cash and cash equivalents    (1,236) 23,931



     Cash and cash equivalents at beginning of period     10,944   7,629



     Cash and cash equivalents at end of period           $9,708 $31,560






                                                                     Three months ended

                                                                     March 31,


                                                             2024    2023



     Net cash provided by operating activities              $689  $1,064



     Capital expenditures                                  (230)  (344)



     Free cash flow                                         $459    $720



     
                Amgen Inc.

       Reconciliation of GAAP EPS Guidance to Non-GAAP

       EPS Guidance for the Year Ending December 31, 2024

       (Unaudited)





     
                GAAP diluted EPS guidance                  $7.15       $8.40



     
                Known adjustments to arrive at non-GAAP*:



     Acquisition-related expenses (a)                        10.98       11.03



     Net losses from equity investments                            0.74



     Other                                                         0.08



     
                Non-GAAP diluted EPS guidance             $19.00      $20.20

* The known adjustments are presented net of their related tax impact, which amount to approximately $2.61 per share.

(a) The adjustments primarily include noncash amortization of intangible assets and fair value step-up of inventory acquired in business combinations.

Our GAAP diluted EPS guidance does not include the effect of GAAP adjustments triggered by events that may occur subsequent to this press release such as acquisitions, asset impairments, litigation, changes in fair value of our contingent consideration obligations and changes in fair value of our equity investments.



     
                Reconciliation of GAAP Tax Rate Guidance to Non-GAAP

       Tax Rate Guidance for the Year Ending December 31, 2024

       (Unaudited)






     GAAP tax rate guidance                                             9.5 % 11.0 %



     Tax rate of known adjustments discussed above                      5.0 %  5.5 %



     Non-GAAP tax rate guidance                                        15.0 % 16.0 %

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SOURCE Amgen