Le Lézard
Classified in: Health, Science and technology, Business, Covid-19 virus
Subjects: ERN, ERP

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS


THOUSAND OAKS, Calif., Aug. 4, 2022 /PRNewswire/ -- Amgen (NASDAQ:AMGN) today announced financial results for the second quarter of 2022. Key results include:

"We are focused on delivering our long-term objectives by serving an ever-increasing number of patients around the world with our medicines," said Robert A. Bradway, chairman and chief executive officer. "We are advancing our pipeline and look forward to important readouts over the next few months."

Non-GAAP EPS has been recast due to an update to our non-GAAP policy effective January 1, 2022, resulting in a $2.61 reduction of previously-reported non-GAAP EPS for the second quarter of 2021.  Refer to Non-GAAP Financial Measures below for further discussion.

$Millions, except EPS, dividends paid per share and percentages


Q2 '22


Q2 '21


YOY ?

Total Revenues


$  6,594


$  6,526


1 %

GAAP Operating Income


$  2,176


$     828


*

GAAP Net Income


$  1,317


$     464


*

GAAP EPS


$    2.45


$    0.81


*

Non-GAAP Operating Income


$  3,335


$  1,606


*

Non-GAAP Net Income


$  2,495


$  1,017


*

Non-GAAP EPS


$    4.65


$    1.77


*

Dividends Paid Per Share


$    1.94


$    1.76


10 %








* Change in excess of 100%







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. Beginning January 1, 2022, the Company's non-GAAP financial measures no longer exclude adjustments for upfront license fees, development milestones and IPR&D expenses of pre-approval programs related to licensing, collaboration and asset acquisition transactions. For purposes of comparability, the non-GAAP financial results for the second quarter of 2021 have been updated to reflect this change. 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 3% for the second quarter of 2022 versus the second quarter of 2021. Unit volumes grew 10%, partially offset by 6% lower net selling price and 2% negative impact from foreign exchange.

General Medicine

Inflammation

Hematology-Oncology

Established Products

Product Sales Detail by Product and Geographic Region

$Millions, except percentages


Q2 '22


Q2 '21


YOY ?



US


ROW


TOTAL


TOTAL


TOTAL

Prolia®


$         611


$         311


$         922


$         814


13 %

EVENITY®


130


61


191


131


46 %

Repatha®


154


171


325


286


14 %

Aimovig®


88


4


92


82


12 %

TEZSPIRE®


29


?


29


?


NM

Otezla®


487


107


594


534


11 %

Enbrel® 


1,036


15


1,051


1,144


(8 %)

AMGEVITAtm


?


116


116


107


8 %

LUMAKRAS®/LUMYKRAStm


51


26


77


9


*

KYPROLIS®


213


104


317


280


13 %

XGEVA®


391


142


533


488


9 %

Vectibix®


96


111


207


239


(13 %)

Nplate®


156


128


284


245


16 %

BLINCYTO®


77


62


139


108


29 %

MVASI®


161


82


243


294


(17 %)

KANJINTI®


69


16


85


156


(46 %)

Neulasta®


263


47


310


486


(36 %)

NEUPOGEN®


21


16


37


51


(27 %)

EPOGEN®


136


?


136


130


5 %

Aranesp®


132


225


357


367


(3 %)

Parsabiv®


71


32


103


71


45 %

Sensipar®/Mimparatm


5


15


20


24


(17 %)

Other products**


69


44


113


68


66 %

Total product sales


$      4,446


$      1,835


$      6,281


$      6,114


3 %












* Change in excess of 100%











** Other products include Corlanor®, AVSOLA®, IMLYGIC® and RIABNItm, as well as sales by GENSENTA and Bergamo subsidiaries

NM = not meaningful











Operating Expense, Operating Margin and Tax Rate Analysis

On a GAAP basis:

On a non-GAAP basis:

$Millions, except percentages


GAAP


Non-GAAP



Q2 '22


Q2 '21


YOY ?


Q2 '22


Q2 '21


YOY ?

Cost of Sales


$ 1,510


$ 1,637


(8 %)


$    926


$ 1,034


(10 %)

% of product sales


24.0 %


26.8 %


(2.8) pts


14.7 %


16.9 %


(2.2) pts

Research & Development


$ 1,039


$ 1,082


(4 %)


$ 1,020


$ 1,036


(2 %)

% of product sales


16.5 %


17.7 %


(1.2) pts


16.2 %


16.9 %


(0.7) pts

Acquired IPR&D


$      ?


$ 1,505


NM


$      ?


$ 1,505


NM

% of product sales


? %


24.6 %


NM


? %


24.6 %


NM

Selling, General & Administrative


$ 1,327


$ 1,384


(4 %)


$ 1,313


$ 1,345


(2 %)

% of product sales


21.1 %


22.6 %


(1.5) pts


20.9 %


22.0 %


(1.1) pts

Other


$    542


$      90


*


$      ?


$      ?


NM

Total Operating Expenses


$ 4,418


$ 5,698


(22 %)


$ 3,259


$ 4,920


(34 %)














Operating Margin













operating income as % of product sales


34.6 %


13.5 %


21.1 pts


53.1 %


26.3 %


26.8 pts














Tax Rate


14.0 %


16.8 %


(2.8) pts


14.7 %


26.3 %


(11.6) pts














pts: percentage points













* change in excess of 100%













NM = not meaningful













 

Cash Flow and Balance Sheet

 

$Billions, except shares


Q2 '22


Q2 '21


YOY ?

Operating Cash Flow


$       1.9


$       1.9


$     0.0

Capital Expenditures


$       0.2


$       0.2


$     0.1

Free Cash Flow


$       1.7


$       1.7


$    (0.1)

Dividends Paid


$       1.0


$       1.0


$     0.0

Share Repurchases


$        ?


$       1.6


$    (1.6)

Average Diluted Shares (millions)


537


576


(39)








Note: Numbers may not add due to rounding








$Billions


6/30/22


12/31/21


YTD ?

Cash and Investments


$       7.2


$       8.0


$    (0.9)

Debt Outstanding


$     36.5


$     33.3


$     3.2








Note: Numbers may not add due to rounding







2022 Guidance

For the full year 2022, the Company now expects:

Second Quarter Product and Pipeline Update

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

Inflammation

Otezla

TEZSPIRE

Rocatinlimab (AMG 451 / KHK4083)

Rozibafusp alfa (AMG 570)

Efavaleukin alfa (AMG 592)

Ordesekimab (AMG 714 / PRV-015)

Oncology

LUMAKRAS/LUMYKRAS

Vectibix

Bemarituzumab

Tarlatamab (AMG 757)

AMG 509

AMG 340

Acapatamab (AMG 160) 

Pavurutamab (AMG 701)

AMG 193

General Medicine

Repatha

Olpasiran (AMG 890)

AMG 133

Biosimilars

TEZSPIRE 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.
AMG 509 is being developed in collaboration with Xencor.
STELARA is a registered trademark of Janssen Pharmaceutica NV.
EYLEA is a registered trademark of Regeneron Pharmaceuticals, Inc.
SOLIRIS is a registered trademark of Alexion Pharmaceuticals, Inc.

Non-GAAP Financial Measures

In this news release, management has presented its operating results for the second quarters of 2022 and 2021, in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and on a non-GAAP basis. In addition, management has presented its full year 2022 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. Beginning January 1, 2022, following industry guidance from the U.S. Securities and Exchange Commission, the Company no longer excludes adjustments for upfront license fees, development milestones and IPR&D expenses of pre-approval programs related to licensing, collaboration and asset acquisition transactions from its non-GAAP financial measures. For purposes of comparability, the non-GAAP financial results for the second quarter of 2021 have been updated to reflect this change.  Reconciliations for these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the news release. Management has also presented Free Cash Flow (FCF), which is a non-GAAP financial measure, for the second quarters of 2022 and 2021. 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 ongoing business activities by facilitating comparisons of results of ongoing 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 is committed to unlocking the potential of biology for patients suffering from serious illnesses by discovering, developing, manufacturing and delivering innovative human therapeutics. This approach begins by using tools like advanced human genetics to unravel the complexities of disease and understand the fundamentals of human biology.

Amgen focuses on areas of high unmet medical need and leverages its expertise to strive for solutions that improve health outcomes and dramatically improve people's lives. A biotechnology pioneer since 1980, Amgen has grown to be one of the world's leading independent biotechnology companies, has reached millions of patients around the world and is developing a pipeline of medicines with breakaway potential.

Amgen is one of the 30 companies that comprise the Dow Jones Industrial Average and is also part of the Nasdaq-100 index.  In 2021, Amgen was named one of the 25 World's Best Workplacestm by Fortune and Great Place to Worktm and one of the 100 most sustainable companies in the world by Barron's.

For more information, visit www.amgen.com and follow us on www.twitter.com/amgen.

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., Kyowa-Kirin Co., Ltd., Generate Biomedicines, Inc., Arrakis Therapeutics, Inc., Plexium, Inc., or any collaboration to manufacture therapeutic antibodies against COVID-19), the performance of Otezla® (apremilast) (including anticipated Otezla sales growth and the timing of non-GAAP EPS accretion), the Five Prime Therapeutics, Inc. acquisition, the Teneobio, Inc. acquisition, or the recently announced proposed acquisition of ChemoCentryx, Inc., 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 such as the ongoing COVID-19 pandemic 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. A breakdown, cyberattack or information security breach 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)
Arvind Sood, 805-447-1060 (investors)

 

Amgen Inc.
Consolidated Statements of Income - GAAP
(In millions, except per-share data)
(Unaudited)



Three months ended

June 30,


Six months ended

June 30,


2022


2021


2022


2021

Revenues:








Product sales

$    6,281


$    6,114


$  12,012


$  11,706

Other revenues

313


412


820


721

Total revenues

6,594


6,526


12,832


12,427









Operating expenses:








Cost of sales

1,510


1,637


3,071


3,127

Research and development

1,039


1,082


1,998


2,049

Acquired in-process research and development

?


1,505


?


1,505

Selling, general and administrative

1,327


1,384


2,555


2,638

Other

542


90


532


151

Total operating expenses

4,418


5,698


8,156


9,470









Operating income

2,176


828


4,676


2,957









Other income (expense):








Interest expense, net

(328)


(281)


(623)


(566)

Other (expense) income, net

(317)


11


(847)


24









Income before income taxes

1,531


558


3,206


2,415









Provision for income taxes

214


94


413


305









Net income

$    1,317


$       464


$    2,793


$    2,110









Earnings per share:








Basic

$      2.46


$      0.81


$      5.16


$      3.67

Diluted

$      2.45


$      0.81


$      5.13


$      3.65









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








Basic

535


573


541


575

Diluted

537


576


544


578

 

Amgen Inc.
Consolidated Balance Sheets - GAAP
(In millions)



June 30,


December 31,


2022


2021


(Unaudited)



Assets

Current assets:




Cash, cash equivalents and marketable securities

$                7,183


$                8,037

Trade receivables, net

5,327


4,895

Inventories

4,554


4,086

Other current assets

2,258


2,367

Total current assets

19,322


19,385





Property, plant and equipment, net

5,158


5,184

Intangible assets, net

13,927


15,182

Goodwill

14,865


14,890

Other noncurrent assets

6,022


6,524

Total assets

$              59,294


$              61,165





Liabilities and Stockholders' Equity

Current liabilities:




Accounts payable and accrued liabilities

$              11,801


$              12,097

Current portion of long-term debt

817


87

Total current liabilities

12,618


12,184





Long-term debt

35,705


33,222

Long-term tax liabilities

5,603


6,594

Other noncurrent liabilities

2,949


2,465

Total stockholders' equity

2,419


6,700

Total liabilities and stockholders' equity

$              59,294


$              61,165





Shares outstanding

535


558

 

Amgen Inc.
GAAP to Non-GAAP Reconciliations
(Dollars in millions)
(Unaudited)



Three months ended

June 30,


Six months ended

June 30,


2022


2021


2022


2021

GAAP cost of sales

$       1,510


$       1,637


$       3,071


$       3,127

Adjustments to cost of sales:








Acquisition-related expenses (a)

(584)


(598)


(1,194)


(1,221)

Other

?


(5)


?


(5)

Total adjustments to cost of sales

(584)


(603)


(1,194)


(1,226)

Non-GAAP cost of sales

$          926


$       1,034


$       1,877


$       1,901









GAAP cost of sales as a percentage of product sales

24.0 %


26.8 %


25.6 %


26.7 %

Acquisition-related expenses (a)

(9.3)


(9.8)


(10.0)


(10.4)

Other

0.0


(0.1)


0.0


(0.1)

Non-GAAP cost of sales as a percentage of product sales

14.7 %


16.9 %


15.6 %


16.2 %









GAAP research and development expenses

$       1,039


$       1,082


$       1,998


$       2,049

Adjustments to research and development expenses:








Acquisition-related expenses (a)

(19)


(46)


(44)


(69)

Non-GAAP research and development expenses

$       1,020


$       1,036


$       1,954


$       1,980









GAAP research and development expenses as a percentage of product sales

16.5 %


17.7 %


16.6 %


17.5 %

Acquisition-related expenses (a)

(0.3)


(0.8)


(0.3)


(0.6)

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

16.2 %


16.9 %


16.3 %


16.9 %









GAAP selling, general and administrative expenses

$       1,327


$       1,384


$       2,555


$       2,638

Adjustments to selling, general and administrative expenses:








Acquisition-related expenses (a)

(14)


(39)


(29)


(51)

Other

?


?


?


(16)

Total adjustments to selling, general and administrative expenses

(14)


(39)


(29)


(67)

Non-GAAP selling, general and administrative expenses

$       1,313


$       1,345


$       2,526


$       2,571









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

21.1 %


22.6 %


21.3 %


22.5 %

Acquisition-related expenses (a)

(0.2)


(0.6)


(0.3)


(0.4)

Other

0.0


0.0


0.0


(0.1)

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

20.9 %


22.0 %


21.0 %


22.0 %









GAAP operating expenses

$       4,418


$       5,698


$       8,156


$       9,470

Adjustments to operating expenses:








Adjustments to cost of sales

(584)


(603)


(1,194)


(1,226)

Adjustments to research and development expenses

(19)


(46)


(44)


(69)

Adjustments to selling, general and administrative expenses

(14)


(39)


(29)


(67)

Certain charges pursuant to our cost savings initiatives

1


(76)


(1)


(128)

Certain other expenses (b)

(543)


(14)


(531)


(23)

Total adjustments to operating expenses

(1,159)


(778)


(1,799)


(1,513)

Non-GAAP operating expenses

$       3,259


$       4,920


$       6,357


$       7,957


















Three months ended

June 30,


Six months ended

June 30,


2022


2021


2022


2021

GAAP operating income

$       2,176


$          828


$       4,676


$       2,957

Adjustments to operating expenses

1,159


778


1,799


1,513

Non-GAAP operating income

$       3,335


$       1,606


$       6,475


$       4,470









GAAP operating income as a percentage of product sales

34.6 %


13.5 %


38.9 %


25.3 %

Adjustments to cost of sales

9.3


9.9


10.0


10.5

Adjustments to research and development expenses

0.3


0.8


0.3


0.6

Adjustments to selling, general and administrative expenses

0.2


0.6


0.3


0.5

Certain charges pursuant to our cost savings initiatives

0.0


1.2


0.0


1.1

Certain other expenses (b)

8.7


0.3


4.4


0.2

Non-GAAP operating income as a percentage of product sales

53.1 %


26.3 %


53.9 %


38.2 %









GAAP other (expense) income, net

$         (317)


$           11


$         (847)


$           24

Adjustments to other (expense) income, net:








Equity method investment basis difference amortization

49


42


96


84

Net losses/(gains) from equity investments

186


1


551


(144)

Total adjustments to other (expense) income, net

235


43


647


(60)

Non-GAAP other (expense) income, net

$          (82)


$           54


$         (200)


(36)









GAAP income before income taxes

$       1,531


$          558


$       3,206


$       2,415

Adjustments to income before income taxes:








Adjustments to operating expenses

1,159


778


1,799


1,513

Adjustments to other (expense) income, net

235


43


647


(60)

Total adjustments to income before income taxes

1,394


821


2,446


1,453

Non-GAAP income before income taxes

$       2,925


$       1,379


$       5,652


$       3,868









GAAP provision for income taxes

$          214


$           94


$          413


$          305

Adjustments to provision for income taxes:








Income tax effect of the above adjustments (c)

216


277


405


408

Other income tax adjustments (d)

?


(9)


(4)


(12)

Total adjustments to provision for income taxes

216


268


401


396

Non-GAAP provision for income taxes

$          430


$          362


$          814


$          701









GAAP tax as a percentage of income before taxes

14.0 %


16.8 %


12.9 %


12.6 %

Adjustments to provision for income taxes:








Income tax effect of the above adjustments (c)

0.7


10.1


1.6


5.8

Other income tax adjustments (d)

0.0


(0.6)


(0.1)


(0.3)

Total adjustments to provision for income taxes

0.7


9.5


1.5


5.5

Non-GAAP tax as a percentage of income before taxes

14.7 %


26.3 %


14.4 %


18.1 %









GAAP net income

$       1,317


$          464


$       2,793


$       2,110

Adjustments to net income:








Adjustments to income before income taxes, net of the income tax effect

1,178


544


2,041


1,045

Other income tax adjustments (d)

?


9


4


12

Total adjustments to net income

1,178


553


2,045


1,057

Non-GAAP net income

$       2,495


$       1,017


$       4,838


$       3,167









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

June 30, 2022


Three months ended

June 30, 2021


GAAP


Non-GAAP


GAAP


Non-GAAP

Net income

$        1,317


$        2,495


$           464


$        1,017









Weighted-average shares for diluted EPS

537


537


576


576









Diluted EPS

$          2.45


$          4.65


$          0.81


$          1.77










Six months ended

June 30, 2022


Six months ended

June 30, 2021


GAAP


Non-GAAP


GAAP


Non-GAAP

Net income

$        2,793


$        4,838


$        2,110


$        3,167









Weighted-average shares for diluted EPS

544


544


578


578









Diluted EPS

$          5.13


$          8.89


$          3.65


$          5.48




(a)


The adjustments related primarily to noncash amortization of intangible assets from business acquisitions.




(b)


For the three and six months ended June 30, 2022, the adjustments primarily related to cumulative foreign currency translation adjustments from a nonstrategic divestiture. For the three and six months ended June 30, 2021, the adjustments related primarily to the change in fair values of contingent consideration liabilities.




(c)


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, whereas the tax impact of other adjustments, including restructuring 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 and six months ended June 30, 2022, were 15.5% and 16.6%, respectively, compared to 33.7% and 28.1% for the corresponding period of the prior year.




(d)


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

 

Amgen Inc.
Reconciliations of Cash Flows
(In millions)
(Unaudited)



Three months ended

June 30,


Six months ended

June 30,


2022


2021


2022


2021

Net cash provided by operating activities

$     1,930


$     1,931


$      4,094


$      4,035

Net cash (used in) provided by investing activities

(2,193)


1,209


(2,304)


890

Net cash used in financing activities

(1,062)


(2,622)


(4,576)


(4,561)

(Decrease) increase in cash and cash equivalents

(1,325)


518


(2,786)


364

Cash and cash equivalents at beginning of period

6,528


6,112


7,989


6,266

Cash and cash equivalents at end of period

$     5,203


$     6,630


$      5,203


$      6,630














Three months ended

June 30,


Six months ended

June 30,


2022


2021


2022


2021

Net cash provided by operating activities

$     1,930


$     1,931


$      4,094


$      4,035

Capital expenditures

(246)


(185)


(436)


(351)

Free cash flow

$     1,684


$     1,746


$      3,658


$      3,684

 

Amgen Inc.
Reconciliation of GAAP EPS Guidance to Non-GAAP
EPS Guidance for the Year Ending December 31, 2022
(Unaudited)


GAAP diluted EPS guidance


$  11.01

?

$ 12.15

Known adjustments to arrive at non-GAAP*:





Acquisition-related expenses (a)


4.02

?

4.11

Loss on divestiture (b)


1.02

?

1.07

Net losses from equity investments



0.80


Other



0.01


Non-GAAP diluted EPS guidance


$  17.00

?

$ 18.00


* The known adjustments are presented net of their related tax impact, which amount to approximately $1.30 - $1.31 per share.


(a) The adjustments relate primarily to noncash amortization of intangible assets acquired in business acquisitions.

(b) The adjustment primarily relates to a cumulative foreign currency translation adjustment from a nonstrategic divestiture.


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, divestitures, asset impairments, litigation, changes in fair value of our contingent consideration obligations and changes in fair value of our equity investments. The GAAP adjustments from the recently announced proposed acquisition of ChemoCentryx, Inc. (expected to close in the fourth quarter of 2022) are included in the GAAP diluted EPS guidance.

 

Reconciliation of GAAP Tax Rate Guidance to Non-GAAP
Tax Rate Guidance for the Year Ending December 31, 2022
(Unaudited)


GAAP tax rate guidance


11.5 %

?

13.0 %

Tax rate of known adjustments discussed above


2.0 %

?

2.5 %

Non-GAAP tax rate guidance


14.0 %

?

15.0 %

 

Amgen Logo. (PRNewsFoto/Amgen) (PRNewsFoto/)

 

SOURCE Amgen


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