Amgen Inc. · NASDAQ:AMGN
Amgen — 36th Annual J.P. Morgan Healthcare Conference (January 2018)
37 slides from Amgen's conference presentation, Jan 9, 2018
Slide 1: 36th Annual J.P. Morgan Healthcare Conference
36TH ANNUAL J.P. MORGAN HEALTHCARE CONFERENCE ROBERT A. BRADWAY CHAIRMAN AND CHIEF EXECUTIVE OFFICER JANUARY 9, 2018
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements that are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described. All statements, o
Slide 3: What I Will Address Today
WHAT I WILL ADDRESS TODAY • Consistent, strong execution of our strategy in 2017 • Updates on our differentiated products in selected therapeutic areas • Our balanced approach to capital allocation • Our commitment to delivering value for patients and shareholders Provided January 9, 2018, as part o
Slide 4: 2017 Success Puts Us in a Strong Position for 2018+
2017 SUCCESS PUTS US IN A STRONG POSITION FOR 2018+ Compelling Repatha® outcomes data with expedited FDA approval Superior survival data for KYPROLIS® and BLINCYTO® vs. standard of care Regulatory submissions for Aimovig™—our first-in-class innovative migraine therapy Parsabiv™ approved as a
Slide 5: We Are on Track to Meet Our 2018 Commitments
WE ARE ON TRACK TO MEET OUR 2018 COMMITMENTS Key 2018 Commitments Double-digit non-GAAP EPS* growth, on average† Non-GAAP operating margin* of 52%–54% vs. 38% in 2013 $1.5B gross cost savings Return of ~ 60% of non-GAAP net income* to shareholders, on average‡ *Non-GAAP financial measure—if this sli
Slide 6: Compelling Long-Term Growth Drivers
COMPELLING LONG-TERM GROWTH DRIVERS • Prolia®, Repatha®, KYPROLIS®, Aimovig™ and biosimilars to propel volume-driven growth • Long-term growth to be driven by – Innovative and differentiated molecules and delivery systems – Biosimilars – International expansion • Solid operating margin, strong cash
Slide 7: Commercial and R&D Efforts Focused in Six Therapeutic Areas
OUR COMMERCIAL AND R&D EFFORTS ARE FOCUSED IN SIX THERAPEUTIC AREAS • Differentiated products that address unmet need and demonstrate large effect sizes in serious illnesses • Industry-leading human genetics capabilities (deCODE) to validate internal and external targets and improve success rates •
Slide 8: Bone Health
BONE HEALTH
Slide 9: Prolia: The World's Leading Biologic in Osteoporosis
PROLIA®: THE WORLD’S LEADING BIOLOGIC IN OSTEOPOROSIS Net Sales, $B • Worldwide, 1 in 3 women over 36% age 50 will experience CAGR $1.6 2012–16 osteoporotic fractures* $1.3 $1.0 • Demographics continue to drive $0.7 strong volume-driven growth $0.5 – 19% YoY growth YTD through Q3 2017 – Share gains
Slide 10: Cardiovascular
CARDIOVASCULAR
Slide 11: Repatha: Novel Market-Leading Treatment with Proven Outcomes Data
REPATHA®: NOVEL MARKET-LEADING TREATMENT WITH PROVEN OUTCOMES DATA FOR PATIENTS WITH CARDIOVASCULAR DISEASE • Every 40 seconds someone has a heart attack or stroke in the U.S.* • CV outcomes data now in U.S. label • We continue to extend leadership in U.S. and Europe • We are focused on improving ac
Slide 12: Expanding Our Presence in Cardiovascular Disease
EXPANDING OUR PRESENCE IN CARDIOVASCULAR DISEASE WITH INNOVATIVE MOLECULES Atherosclerosis Heart Failure • Innovative molecules with • Innovative molecules with human genetic validation human clinical validation – Repatha® – Corlanor® • PCSK9 inhibitor • If Channel inhibitor – AMG 529 – Omecamtiv me
Slide 13: Oncology/Hematology
a - ‘ONCOLOGY/HEMATOLOGY _ < Ee om
Slide 14: A Differentiated Approach to Immuno-Oncology
A DIFFERENTIATED APPROACH TO IMMUNO-ONCOLOGY • IMLYGIC® and BiTE® platform have significant potential beyond initial indications • BLINCYTO® is the only currently approved bispecific molecule in oncology – Overall survival data in R/R ALL – Phase 2 diffuse large B-cell lymphoma studies enrolling • I
Slide 15: Advancing BiTE Programs, Including Extended Half-Life Molecules
ADVANCING 12 BITE® PROGRAMS, INCLUDING EXTENDED HALF-LIFE MOLECULES COMPATIBLE WITH WEEKLY DOSING Preclinical Phase 1 BLINCYTO® AMG 330 CD19 CD33 Short-Acting Lymphoma Leukemia BiTE® Format AMG 420 AMG 596 BCMA EGFRviii Multiple Brain Myeloma AMG 701 Prostate Leukemia AMG 673 BCMA CD33 Multiple Leuk
Slide 16: Developing a Robust Multiple Myeloma Franchise
WE ARE DEVELOPING A ROBUST MULTIPLE MYELOMA FRANCHISE • KYPROLIS® – Overall survival (OS) data from ENDEAVOR study under regulatory review with submission of ASPIRE OS data to follow • XGEVA® – Now approved in U.S. for the prevention of skeletal-related events in patients with multiple myeloma • AMG
Slide 17: Neuroscience
NEUROSCIENCE
Slide 18: Commitment to Innovation in Neuroscience Led by Aimovig
A COMMITMENT TO INNOVATION IN NEUROSCIENCE LED BY AIMOVIG™ Migraine Prevention Alzheimer’s Disease • Aimovig™ • CNP520 (BACE inhibitor) – First-in-class CGRP receptor antibody – Phase 3 studies enrolling – ~ 3.5M addressable patients in U.S. – Fast Track designation by FDA – ~ 80% stop oral treatmen
Slide 19: Inflammation
INFLAMMATION
Slide 20: Capitalizing on Our Leadership in Inflammation
CAPITALIZING ON OUR LEADERSHIP IN INFLAMMATION • Enbrel® – Launched ENBREL Mini™ with AutoTouch™* reusable autoinjector with a new formulation • Tezepelumab† – Asthma affects 315 million individuals worldwide, and up to 10 percent of asthma patients have severe asthma, which may be uncontrolled desp
Slide 21: Lifecycle Management
LIFECYCLE MANAGEMENT
Slide 22: Mature Brands to Generate Strong Cash Flows for Many Years
WE EXPECT OUR MATURE BRANDS TO GENERATE STRONG CASH FLOWS FOR MANY YEARS TO COME • Strong execution with our lifecycle management strategies – Neulasta® Onpro® kit exited Q4 ’17 with ~ 60% share of Neulasta® units – ESA contract with DaVita through 2022 – Shift of EPOGEN® to Aranesp® at small-to-mid
Slide 23: Biosimilars
‘BIOSIMIEARS« s€
Slide 24: We Expect to Commercialize Our Biosimilars Starting in 2018
WE EXPECT TO COMMERCIALIZE OUR BIOSIMILARS STARTING IN 2018 Originator Worldwide Status 2017 Sales* AMJEVITA™† October 2018 EU launch; U.S. 2023 HUMIRA® ~ $19B MVASI™‡/ABP 215 Approved in U.S./Positive EU opinion Avastin® ~ $7B ABP 980 Filed for approval Herceptin® ~ $7B ABP 710 Phase 3 REMICADE® ~
Slide 25: Capital Allocation
‘CAPITALALLOCATION x
Slide 26: Disciplined Capital Allocation to Generate Long-Term Shareholder Value
DISCIPLINED CAPITAL ALLOCATION TO GENERATE LONG-TERM SHAREHOLDER VALUE $42B Invested in the Business Since 2011, Strong Total Returns to Shareholders $25B or 33% of Sales* Total Shareholder Return (TSR) Jan. 1, 2011–Dec. 31, 2017 $13B 264% $5B Non-GAAP R&D Acquisitions Capital Expense† Expenditures
Slide 27: Our Strong Strategic Position Is Improved by Tax Reform
OUR STRONG STRATEGIC POSITION IS IMPROVED BY TAX REFORM • Committed to deploying our significant financial flexibility to drive growth and shareholder value • We will invest in our business—both internally and externally • We will manage the capital structure to maintain our low cost of capital • We
Slide 28: Focused and Disciplined Business Development Investments
WE ARE MAKING FOCUSED AND DISCIPLINED BUSINESS DEVELOPMENT INVESTMENTS EARLY STAGE LATE STAGE JV SHARE ACQUISITION DIGITAL HEALTH VENTURES Kirin-Amgen, Inc. Provided January 9, 2018, as part of an oral presentation and is qualified by such, contains forward-looking statements, actual results may var
Slide 29: Industry Trends Point to More Business Development
INDUSTRY TRENDS POINT TO MORE BUSINESS DEVELOPMENT Industry trends How Amgen gains • Innovation flourishing broadly • Acquire innovative molecules • Fragmented industry that complement our 6 leaning toward consolidation therapeutic areas of focus • Tax reform provides clarity • Accelerate our intern
Slide 30: Conclusion
CONCLUSION • Continued commitment to driving business performance • Meaningful pipeline opportunities in late-stage development • Strong strategic position to drive growth • Tax reform provides a competitive framework in the global economy – Access to our accumulated and future cash flows globally,
Slide 31: Reconciliations
RECONCILIATIONS
Slide 32: Reconciliations of GAAP to Non-GAAP Measures
Amgen Inc. Reconciliations of GAAP to Non-GAAP Measures (Dollars in millions) (Unaudited) Nine months ended September 30, 2017 2016 GAAP cost of sales $ 3,010 $ 3,095 Adjustments to cost of sales: Acquisition-related expenses (a) (883) (934) Certain net charges pursuant to our restructuring initiati
Slide 33: GAAP to Non-GAAP Reconciliations
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 EPS. Nine months ended Nine months ended September 30, 2017 September 30, 2016 GAAP Non-GAAP GAAP Non-GAAP Net income……………………………………
Slide 34: Reconciliations of GAAP to Non-GAAP Measures
Amgen Inc. Reconciliations of GAAP to Non-GAAP Measures (In millions, except per share data) (Unaudited) Nine months ended Years ended September 30, December 31, 2017 2016 2015 2014 2013 GAAP operating income $ 7,728 $ 9,794 $ 8,470 $ 6,191 $ 5,867 Adjustments to operating expenses: Acquisition-rela
Slide 35: GAAP to Non-GAAP Reconciliations
Amgen Inc. GAAP to Non-GAAP Reconciliations (In millions) (Unaudited) Years ended December 31, 2016 2015 2014 2013 2012 2011 GAAP research and development expenses $ 3,840 $ 4,070 $ 4,297 $ 4,083 $ 3,380 $ 3,167 Adjustments to research and development expenses: Acquisition-related expenses (a) (78)
Slide 36: Reconciliations of Cash Flows
Amgen Inc. Reconciliations of Cash Flows (In millions) (Unaudited) Nine months ended September 30, 2017 2016 Net cash provided by operating activities............................................................................................ $ 8,165 $ 7,254 Net cash used in investing activities ...
Slide 37: 36th Annual J.P. Morgan Healthcare Conference
36TH ANNUAL J.P. MORGAN HEALTHCARE CONFERENCE ROBERT A. BRADWAY CHAIRMAN AND CHIEF EXECUTIVE OFFICER JANUARY 9, 2018
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