News Release

One Amgen Center Drive
Thousand Oaks, CA 91320-1799
Telephone 805-447-1000
www.amgen.com

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
THOUSAND OAKS, Calif. (August 4, 2022) - Amgen (NASDAQ:AMGN) today announced financial
results for the second quarter of 2022. Key results include:•

Total revenues increased 1% to $6.6 billion in comparison to the second quarter of 2021, resulting
from 3% growth in global product sales partially offset by lower Other Revenue from our
COVID-19 manufacturing collaboration.

◦•

GAAP earnings per share (EPS) increased from $0.81 to $2.45 driven by a decrease in operating
expenses due to the write-off of $1.5 billion in Acquired In-Process Research & Development(Acquired IPR&D) associated with our acquisition of Five Prime Therapeutics in Q2 2021 andlower weighted-average shares outstanding in Q2 2022, partially offset by an impairment charge
related to the divestiture of GENSENTA, a generics subsidiary in Turkey.
◦•

Volumes grew double-digits for a number of products including Repatha® (evolocumab),
Prolia® (denosumab), LUMAKRAS®/LUMYKRAS™ (sotorasib) and EVENITY® (romosozumabaqqg).

GAAP operating income increased from $0.8 billion to $2.2 billion, and GAAP operating
margin increased 21.1 percentage points to 34.6%.

Non-GAAP EPS increased from $1.77 to $4.65 driven by a decrease in operating expenses dueto the write-off of $1.5 billion in Acquired IPR&D associated with our acquisition of Five Prime
Therapeutics in Q2 2021 and lower weighted-average shares outstanding in Q2 2022.
◦

Non-GAAP operating income increased from $1.6 billion to $3.3 billion, and non-GAAP
operating margin increased 26.8 percentage points to 53.1%.

•

The Company generated $1.7 billion of free cash flow for the second quarter versus $1.7 billion in
the second quarter of 2021.

•

2022 total revenues guidance revised to $25.5-$26.4 billion; EPS guidance revised to$11.01-$12.15 on a GAAP basis, and reaffirmed at $17.00-$18.00 on a non-GAAP basis.

"We are focused on delivering our long-term objectives by serving an ever-increasing number ofpatients 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.

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 2$Millions, except EPS, dividends paid per share andpercentages
Total Revenues ..................................................................
GAAP Operating Income .................................................
GAAP Net Income .............................................................
GAAP EPS .........................................................................
Non-GAAP Operating Income .........................................
Non-GAAP Net Income ....................................................
Non-GAAP EPS.................................................................
Dividends Paid Per Share ................................................

Q2 ’22$ 6,594$ 2,176$ 1,317$ 2.45$ 3,335$ 2,495$ 4.65$ 1.94Q2 ’21$ 6,526$ 828$ 464$ 0.81$ 1,606$ 1,017$ 1.77$ 1.76

YOY Δ
1%
*
*
*
*
*
*
10%

* Change in excess of 100%
References in this release to “non-GAAP” measures, measures presented “on a non-GAAP basis” and “free cashflow” (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 acquisitiontransactions. For purposes of comparability, the non-GAAP financial results for the second quarter of 2021 have been updated toreflect this change. Adjustments to the most directly comparable GAAP financial measures and other items are presented on theattached 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 foreignexchange.
General Medicine•

Prolia® sales increased 13% year-over-year for the second quarter, primarily driven by 12%
volume growth.

•

EVENITY® sales increased 46% year-over-year to a record $191 million for the second quarter,
driven by strong volume growth across our markets. U.S. sales grew 65% year-over-year, driven
by 60% volume growth. Outside the U.S., EVENITY sales grew 17%, driven by 37% volume
growth, partially offset by foreign exchange impact.

•

Repatha® sales increased 14% year-over-year for the second quarter, driven by 55% volume
growth, partially offset by lower net selling price. In the U.S., sales grew 8%, driven by 38%
volume growth, partially offset by lower net selling price resulting from higher rebates to supportand expand access for patients. Outside the U.S., sales grew 20%. Repatha remains the global
proprotein convertase subtilisin/kexin type 9 (PCSK9) segment leader, with over 1.1 million
patients treated since launch.

•

Aimovig® (erenumab-aooe) sales increased 12% year-over-year for the second quarter,
primarily driven by higher net selling price, partially offset by a 11% decline in volume.

Inflammation•

TEZSPIRE® (tezepelumab-ekko) generated $29 million of sales in the second quarter, driven bystrong adoption by both allergists and pulmonologists across all severe asthma patient types.
Healthcare providers acknowledge TEZSPIRE’s unique, differentiated profile and its broadpotential to treat the 2.5 million patients worldwide with severe asthma who are uncontrolled or
biologic eligible, without any phenotypic and biomarker limitation.

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 3•Otezla® (apremilast) sales increased 11% year-over-year for the second quarter, driven by 8%
volume growth and favorable changes to estimated sales deductions, partially offset by lower net
selling price. In the U.S., total prescription (TRx) volumes grew 12% year-over-year and new-tobrand prescriptions (NBRx) grew 18% year-over-year, supported by broader adoption of Otezla
among patients with mild-to-moderate psoriasis. We expect continued volume growth in thesecond half of 2022 given our unique, broad indication to treat patients suffering from mild,moderate or severe psoriasis.

•

Enbrel® (etanercept) sales decreased 8% year-over-year for the second quarter, primarily driven
by lower net selling price and a 3% decline in volume. Going forward, we expect net selling priceto continue to decline year-over-year, driven by increased competition.

•

AMGEVITA™ (adalimumab) sales increased 8% year-over-year for the second quarter, driven by
32% volume growth, partially offset by foreign exchange impact and lower net selling priceresulting from increased competition. AMGEVITA continued to be the most prescribedadalimumab biosimilar in Europe.

Hematology-Oncology•

LUMAKRAS®/LUMYKRAS™ (sotorasib) generated $77 million of sales for the second quarter,
representing 24% quarter-over-quarter growth. In the U.S., LUMAKRAS has been prescribed toover 3,000 patients by over 1,900 physicians in both academic and community settings. Outside
the U.S., LUMYKRAS has now been approved in over 40 countries around the world. We are
actively launching in 25 markets and pursuing reimbursement in the remaining countries.

•

KYPROLIS® (carfilzomib) sales increased 13% year-over-year for the second quarter, driven by
19% volume growth, partially offset by lower net selling price.

•

XGEVA® (denosumab) sales increased 9% year-over-year for the second quarter, driven byhigher net selling price and favorable changes to estimated sales deductions. Volume remained
flat year-over-year in the second quarter.

•

Vectibix® (panitumumab) sales decreased 13% year-over-year for the second quarter driven by
the timing of shipments to Takeda, our partner in Japan, in the second quarter of 2021. In the
U.S., sales increased 4% year-over-year, driven by volume growth.

•

Nplate® (romiplostim) sales increased 16% year-over-year for the second quarter, primarily
driven by 11% volume growth and higher net selling price.

•

BLINCYTO® (blinatumomab) sales increased 29% year-over-year for the second quarter, driven
by volume growth.

•

MVASI® sales decreased 17% year-over-year for the second quarter, driven by lower net selling
price that was partially offset by 10% volume growth. In the U.S., MVASI continued to hold leading
volume share with 49% of the bevacizumab segment for the quarter. The most recently published
Average Selling Price (ASP) for MVASI in the U.S. declined 39% year-over-year and 21% quarterover-quarter. Looking forward, we expect continued net selling price erosion and declining volume
driven by increased competition and continued ASP erosion.

•

KANJINTI® (trastuzumab-anns) sales decreased 46% year-over-year for the second quarter,
primarily driven by declines in net selling price and volume. In the U.S., KANJINTI continued tohold leading volume share with 41% of the trastuzumab segment in the quarter. The most recently
published ASP for KANJINTI in the U.S. declined 43% year-over-year and 21% quarter-overquarter. Going forward, we expect continued net selling price deterioration and volume declines
driven by increased competition and continued ASP erosion.

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 4

Established Products•

Total sales of our established products, which include Neulasta® (pegfilgrastim), NEUPOGEN®
(filgrastim), EPOGEN® (epoetin alfa), Aranesp® (darbepotein alfa), Parsabiv® (etelcalcetide),and Sensipar®/Mimpara™ (cinacalcet), decreased 15% year-over-year for the second quarter,
primarily driven by lower net selling price. In the second quarter, the published ASP for Neulasta in
the U.S. declined 35% year-over-year and 9% quarter-over-quarter. In the aggregate, we expect
the year-over-year net selling price and volume erosion for this portfolio of products to continue.

Product Sales Detail by Product and Geographic Region$Millions, except percentages
Prolia® ................................................................. $EVENITY® ..........................................................
Repatha® ............................................................
Aimovig® .............................................................
TEZSPIRE® ...................................................
Otezla® ................................................................
Enbrel® ...............................................................
AMGEVITA™.......................................................
LUMAKRAS®/LUMYKRAS™ .........................
KYPROLIS®........................................................
XGEVA® ..............................................................
Vectibix® ..............................................................
Nplate® ................................................................
BLINCYTO® ........................................................
MVASI® ...............................................................
KANJINTI® ..........................................................
Neulasta® ............................................................
NEUPOGEN® .....................................................
EPOGEN® ..........................................................
Aranesp® .............................................................
Parsabiv® ............................................................
Sensipar®/Mimpara™.........................................
Other products** ................................................
Total product sales ............................................ $

US
611
130
154
88
29
487
1,036
—
51
213
391
96
156
77
161
69
263
21
136
132
71
5
69
4,446

Q2 ’22
ROW
$
311
61
171
4
—
107
15
116
26
104
142
111
128
62
82
16
47
16
—
225
32
15
44
$
1,835

TOTAL
922
191
325
92
29
594
1,051
116
77
317
533
207
284
139
243
85
310
37
136
357
103
20
113
$
6,281
$

Q2 ’21
TOTAL
$
814
131
286
82
—
534
1,144
107
9
280
488
239
245
108
294
156
486
51
130
367
71
24
68
$
6,114

YOY Δ
TOTAL
13%
46%
14%
12%
NM
11%
(8%)
8%
*
13%
9%
(13%)
16%
29%
(17%)
(46%)
(36%)
(27%)
5%
(3%)
45%
(17%)
66%
3%

* Change in excess of 100%** Other products include Corlanor®, AVSOLA®, IMLYGIC® and RIABNI™, as well as sales by GENSENTA andBergamo subsidiaries.
NM = not meaningful

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 5

Operating Expense, Operating Margin and Tax Rate Analysis
On a GAAP basis:•

Total Operating Expenses decreased 22%. Cost of Sales margin decreased 2.8 percentage
points primarily driven by lower COVID-19 antibody shipments and lower manufacturing costs,
partially offset by unfavorable product mix. Research & Development (R&D) expenses
decreased 4% primarily due to lower marketed product support, partially offset by higher spend inresearch and early pipeline. Acquired IPR&D expenses were zero in Q2 2022, compared to$1.5 billion in Q2 2021 due to the Five Prime Therapeutics acquisition. Selling, General &Administrative (SG&A) expenses decreased 4%. R&D and SG&A expenses were also impacted
by lower acquisition-related expenses from Five Prime Therapeutics.

•

Operating Margin as a percentage of product sales increased 21.1 percentage points to 34.6%.

•

Tax Rate decreased 2.8 percentage points primarily due to the Five Prime Therapeutics nondeductible IPR&D expense in the prior year, partially offset by the impact of current year net
unfavorable items, including an increase in the interest expense on tax reserves and the tax
impact of the GENSENTA impairment charge.

On a non-GAAP basis:•

Total Operating Expenses decreased 34%. Cost of Sales margin decreased 2.2 percentage
points primarily driven by lower COVID-19 antibody shipments and lower manufacturing costs,
partially offset by unfavorable product mix. R&D expenses decreased 2% primarily due to lower
marketed product support, partially offset by higher spend in research and early pipeline.
Acquired IPR&D expenses were zero in Q2 2022, compared to $1.5 billion in Q2 2021 due to theFive Prime Therapeutics acquisition. SG&A expenses decreased 2%.

•

Operating Margin as a percentage of product sales increased 26.8 percentage points to 53.1%.

•

Tax Rate decreased 11.6 percentage points primarily due to the Five Prime Therapeutics nondeductible IPR&D expense in the prior year.

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 6$Millions, except percentages

Acquired IPR&D% of product sales ......................................
Selling, General & Administrative ................
% of product sales ......................................
Other ................................................................
Total Operating Expenses.........................

Q2 ’22$ 1,51024.0 %$ 1,03916.5 %$——%$ 1,327
21.1 %$ 542$ 4,418

GAAP
Q2 ’21$ 1,637
26.8 %$ 1,082
17.7 %$ 1,505
24.6 %$ 1,384
22.6 %$
90$ 5,698

YOY Δ(8%)(2.8) pts.
(4%)(1.2) pts.
NM
NM
(4%)
(1.5) pts.
*
(22%)

Operating Margin ...........................................
operating income as % of product sales .

34.6 %

13.5 %

21.1 pts.

53.1 %

26.3 %

Tax Rate

14.0 %

16.8 % (2.8) pts.

14.7 %

26.3 % (11.6) pts.

Cost of Sales ..................................................
% of product sales ......................................
Research & Development ............................
% of product sales ......................................

Non-GAAP
Q2 ’22Q2 ’21
YOY Δ$ 926$ 1,034(10%)
14.7 %
16.9 % (2.2) pts.
$ 1,020$ 1,036(2%)
16.2 %
16.9 % (0.7) pts.
$—
$ 1,505
NM—%
24.6 %
NM$ 1,313$ 1,345(2%)
20.9 %
22.0 % (1.1) pts.
$
—
$
—
NM
$ 3,259$ 4,920(34%)
26.8 pts.

pts: percentage points* change in excess of 100%
NM = not meaningful

Cash Flow and Balance Sheet•

The Company generated $1.7 billion of free cash flow in the second quarter of 2022 versus $1.7
billion in the second quarter of 2021.

•

The Company’s second quarter 2022 dividend of $1.94 per share was declared on March 2, 2022,
and was paid on June 8, 2022, to all stockholders of record as of May 17, 2022, representing a
10% increase from 2021.

•

During the second quarter, there were no repurchases of shares of common stock, following the24.6 million shares of common stock repurchased in the first quarter primarily in connection withaccelerated share repurchase agreements that the Company entered into in February 2022.

•

Cash and investments totaled $7.2 billion and debt outstanding totaled $36.5 billion as of June 30,
2022.

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 7$Billions, except shares
Operating Cash Flow ..............................................
Capital Expenditures...............................................
Free Cash Flow .......................................................
Dividends Paid .........................................................
Share Repurchases ................................................
Average Diluted Shares (millions)

Q2 ’22
$
1.9
$
0.2
$
1.7
$
1.0
$
—
537

Q2 ’21
$
1.9
$
0.2
$
1.7
$
1.0
$
1.6
576

YOY Δ
$
0.0
$
0.1
$ (0.1)$0.0$ (1.6)(39)

Note: Numbers may not add due to rounding$Billions
6/30/22
Cash and Investments ............................................ $7.2
Debt Outstanding .................................................... $ 36.5

12/31/21 YTD Δ$
8.0 $ (0.9)$ 33.3 $ 3.2

Note: Numbers may not add due to rounding

2022 Guidance
For the full year 2022, the Company now expects:•

Total revenues in the range of $25.5 billion to $26.4 billion.

•

On a GAAP basis, EPS in the range of $11.01 to $12.15 and a tax rate in the range of 11.5% to13.0%.

•

On a non-GAAP basis, EPS in the range of $17.00 to $18.00, unchanged from previous
guidance, and a tax rate in the range of 14.0% to 15.0%.

•

Capital expenditures to be approximately $950 million, unchanged from previous guidance.

•

Share repurchases in the range of $6.0 billion to $7.0 billion, unchanged from previous guidance.

Second Quarter Product and Pipeline Update
The Company provided the following updates on selected product and pipeline programs:
Inflammation
Otezla•The primary and secondary endpoints of the SPROUT study, an international Phase 3, multicenter, randomized, double-blind, placebo-controlled study evaluating Otezla in pediatric patients(ages 6 through 17) with moderate to severe pediatric plaque psoriasis, have been successfully
met. No new safety signals were identified and the overall treatment-emergent adverse event
profile during the placebo-controlled phase of the study was consistent with the known safety
profile of Otezla. The trial will continue to completion and final analysis, expected in 2023.

TEZSPIRE• In July, TEZSPIRE was recommended for approval in the European Union by the Committee for
Medicinal Products for Human Use for severe asthma.
• In July, Health Canada approved TEZSPIRE for the add-on maintenance treatment of adult andadolescents 12 years and older with severe asthma,

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 8

•
•
•
•
•
•
•

In July, the Brazilian National Health Surveillance Agency (ANVISA) approved TEZSPIRE as an
add-on maintenance treatment in patients with severe asthma aged 12 years and older.
Regulatory reviews continue in other jurisdictions.
The PASSAGE Phase 4 real-world effectiveness study and the WAYFINDER Phase 3b study areenrolling patients with severe asthma.
The SUNRISE Phase 3 study, designed to assess the efficacy and safety of TEZSPIRE in
reducing oral corticosteroid use in adults with oral corticosteroid dependent asthma, was initiated.
A Phase 3 study continues to enroll patients with chronic rhinosinusitis with nasal polyps.
Planning is underway for a Phase 3 study in patients with eosinophilic esophagitis.
A Phase 2b study in patients with chronic spontaneous urticaria is fully enrolled with data readout
anticipated in H1-2023.
A Phase 2 study continues to enroll patients with chronic obstructive pulmonary disease.

Rocatinlimab (AMG 451 / KHK4083)• The ROCKET Phase 3 program evaluating rocatinlimab, an anti-OX40 monoclonal antibody, inpatients with moderate to severe atopic dermatitis was initiated in June. Following additional
discussions with regulators and our partner, we are amending the studies to further improve
patient convenience and investigate a range of doses. No safety or efficacy issues have arisen.
Rozibafusp alfa (AMG 570)
• A Phase 2b study of rozibafusp alfa, an antibody-peptide conjugate that simultaneously blocks
inducible T-cell costimulatory ligand (ICOSL) and B-cell activating factor (BAFF) activity, continues
to enroll patients with systemic lupus erythematosus (SLE).
Efavaleukin alfa (AMG 592)
• A Phase 2b study of efavaleukin alfa, an interleukin-2 (IL-2) mutein Fc fusion protein, continues toenroll patients with SLE while a Phase 2b study continues to enroll patients with ulcerative colitis.
Ordesekimab (AMG 714 / PRV-015)• A Phase 2b study of AMG 714, a monoclonal antibody that binds interleukin-15, continues toenroll patients with non-responsive celiac disease.
Oncology
LUMAKRAS/LUMYKRAS• In June, data were presented at the American Society of Clinical Oncology (ASCO) annual
meeting where investigators evaluated patterns of resistance to LUMAKRAS in patients with nonsmall cell lung cancer (NSCLC) and colorectal cancer (CRC) at disease progression. These andother data continue to guide the LUMAKRAS clinical development program.
• The Company is planning to initiate a Phase 3 study of LUMAKRAS plus chemotherapy in firstline KRAS G12C mutant and PD-L1 negative advanced / metastatic NSCLC.
• Initial data from cohorts exploring LUMAKRAS in combination with immunotherapy in patients with
KRAS G12C-mutated NSCLC will be presented on August 7th at the International Association for
the Study of Lung Cancer World Conference on Lung Cancer (WCLC).
• Initial data from cohorts exploring LUMAKRAS in combination with the Src homology-2 domaincontaining protein tyrosine phosphatase-2 (SHP2) inhibitor RMC-4630 from Revolution Medicines
in patients with KRAS G12C-mutated NSCLC will be presented on August 7th at WCLC. This
combination was safe and well tolerated, with promising and durable clinical activity in patientswith NSCLC, most notably in those who were KRAS G12C inhibitor-naïve.
• Top-line results from the event-driven, confirmatory Phase 3 study comparing LUMAKRAS to
docetaxel in patients with KRAS G12C-mutated advanced NSCLC are expected in Q3-2022.
• Top-line results from a study comparing the 960 mg/day dose of LUMAKRAS with a lower dose of
240 mg/day in patients with KRAS G12C-mutated advanced NSCLC are expected in Q4-2022.

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 9•••A Phase 2 study in first-line patients with KRAS G12C-mutated NSCLC whose tumors express
serine/threonine kinase 11 (STK11) mutations and/or less than 1% programmed death-ligand 1 isongoing.
A Phase 3 study of LUMAKRAS in combination with Vectibix in third-line KRAS G12C-mutated
CRC continues to enroll.
Data from the full dose expansion Phase 1b study of LUMAKRAS in combination with Vectibix inrefractory KRAS G12C-mutated CRC were accepted for presentation at the European Society for
Medical Oncology Congress taking place in September.

Vectibix• In June, the Company and its partner Takeda Pharmaceutical Company presented data from thePhase 3 PARADIGM clinical trial of Vectibix in Japanese patients with previously untreatedunresectable wild-type RAS metastatic CRC at the ASCO annual meeting. These data
demonstrated that the mFOLFOX6 + Vectibix combination provides a statistically significant
improvement in overall survival over the mFOLFOX6 + bevacizumab combination in patients witha left-sided primary tumor or regardless of tumor locations.
Bemarituzumab• The final analysis of the FIGHT study, a Phase 2 randomized, double-blind, controlled study
evaluating bemarituzumab, a fibroblast growth factor receptor 2b (FGFR2b) targeting monoclonal
antibody, and modified FOLFOX6 in patients with previously untreated advanced gastric andgastroesophageal junction cancer was completed. These results continued to demonstrate thatbemarituzumab + mFOLFOX6 improves the clinical outcome of patients with FGFR2b expressing
tumors with no new safety concerns. A greater survival benefit was observed with increasing
FGFR2b expression levels.
• A Phase 3 study (FORTITUDE-101) of bemarituzumab plus chemotherapy, versus placebo plus
chemotherapy in first-line gastric cancer with FGFR2b overexpression continues to enroll patients.
• A Phase 1b/3 study (FORTITUDE-102) of bemarituzumab plus chemotherapy and nivolumab
versus chemotherapy and nivolumab in first-line gastric cancer with FGFR2b overexpression isenrolling patients in the Phase 3 portion of the study.
• A Phase 1b study (FORTITUDE-103) of bemarituzumab plus oral chemotherapy regimens in firstline gastric cancer with FGFR2b overexpression is enrolling patients.
• A Phase 1b study (FORTITUDE-201) of bemarituzumab monotherapy and in combination withdocetaxel continues to enroll patients with squamous NSCLC with FGFR2b overexpression.
• A Phase 1b/2 study (FORTITUDE-301), evaluating the safety and efficacy of bemarituzumab
monotherapy in solid tumors with FGFR2b overexpression, was initiated.
Tarlatamab (AMG 757)
• Updated exploration and first expansion Phase 1 data of tarlatamab, a half-life extended (HLE) bispecific T-cell engager (BiTE®) molecule targeting delta-like ligand 3 (DLL3), in heavily pretreatedpatients with relapsed/refractory small cell lung cancer (SCLC) will be presented on Aug 8th at
WCLC. In this setting, tarlatamab demonstrated promising antitumor activity with notable
response durability.
• DeLLphi-301, a potentially registrational Phase 2 study of tarlatamab for the treatment ofrelapsed/refractory SCLC after two or more prior lines of treatment, continues to enroll patients.
• DeLLphi-302, a Phase 1b study of tarlatamab in combination with AMG 404, an anti-programmed
cell death-1 monoclonal antibody, continues to enroll patients with second-line or later SCLC.
• DeLLphi-303, a Phase 1b study of tarlatamab in combination with standard of care in first-line
SCLC, is open for enrollment.
• DelLphi-300, a Phase 1b study of tarlatamab, continues to enroll patients with de novo or
treatment emergent neuroendocrine prostate cancer.

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 10

AMG 509• A Phase 1 dose-escalation study of AMG 509, a bi-specific molecule targeting six-transmembrane
epithelial antigen of prostate 1 (STEAP1) continues to enroll patients with metastatic castrateresistant prostate cancer (mCRPC).
AMG 340• A Phase 1 dose-escalation study of AMG 340, a lower T-cell affinity BiTE molecule targetingprostate-specific membrane antigen (PSMA), continues to enroll patients with mCRPC.
Acapatamab (AMG 160)
• Acapatamab, a HLE BiTE molecule targeting PSMA for the treatment of patients with mCRPC,
has been deprioritized in favor of AMG 340.
Pavurutamab (AMG 701)
• Clinical development of pavurutamab an anti-B-cell maturation antigen (BCMA) HLE BiTE
molecule being investigated for the treatment of multiple myeloma, has been discontinued forstrategic reasons.
AMG 193• A Phase 1/1b/2 study of AMG 193, a novel small molecule methylthioadenosine (MTA)
cooperative protein arginine methyltransferase 5 (PRMT5) molecular glue, continues to enroll
patients with advanced methylthioadenosine phosphorylase (MTAP)-null solid tumors.
General Medicine
Repatha• An abstract based on data from the Repatha open label extension (OLE) studies (FOURIER OLE)
has been accepted as a late-breaking presentation for the European Society of Cardiology (ESC)
annual conference in August.
Olpasiran (AMG 890)
• In May, the Company announced positive top-line data from a Phase 2 study of olpasiran, alipoprotein(a) (Lp(a)) small interfering RNA molecule, in subjects with elevated Lp(a). These data
demonstrated a significant reduction from baseline in Lp(a) of up to or greater than 90 percent atweek 36 (primary endpoint) and week 48 (end of treatment period) for the majority of doses. No
new safety concerns were identified during this treatment period. Presentation of these results is
expected at a medical congress in 2022.
AMG 133• A Phase 1 study of AMG 133, a multispecific that inhibits the gastric inhibitory polypeptide
receptor (GIPR) and activates the glucagon-like peptide 1 (GLP-1) receptor, has completed
enrollment.
• Data from the initial cohorts of this Phase 1 study will be submitted to a medical congressoccurring in Q4-2022.
Biosimilars• The final analysis from a Phase 3 study evaluating the efficacy and safety of ABP 654 compared
to STELARA® (ustekinumab) in adult patients with moderate to severe plaque psoriasis is
expected in 2022.
• A Phase 3 study to support an interchangeability designation in the U.S. for ABP 654 is ongoing.
• Phase 3 studies of ABP 938, an investigational biosimilar to EYLEA® (aflibercept), and ABP 959,
an investigational biosimilar to SOLIRIS® (eculizumab), are on track, with data expected in 2022.
• A Phase 3 study to support an interchangeability designation in the U.S. for AMJEVITA™
(adalimumab-atto) is ongoing.

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 11•

The U.S. label for AMJEVITA™ has been modified to include pediatric Crohn’s disease (ages 6
and above) and juvenile idiopathic arthritis (ages 2-3).

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.

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 12

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 nonGAAP basis. In addition, management has presented its full year 2022 EPS and tax guidance inaccordance with GAAP and on a non-GAAP basis. These non-GAAP financial measures are computedby excluding certain items related to acquisitions, divestitures, restructuring and certain other items fromthe 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 tolicensing, 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 mostdirectly comparable GAAP financial measures are included in the news release. Management has alsopresented Free Cash Flow (FCF), which is a non-GAAP financial measure, for the second quarters of2022 and 2021. FCF is computed by subtracting capital expenditures from operating cash flow, each asdetermined in accordance with GAAP.
The Company believes that its presentation of non-GAAP financial measures provides usefulsupplementary 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 facilitatingcomparisons 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 toallocate 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 andunderstand 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 since1980, Amgen has grown to be one of the world’s leading independent biotechnology companies, hasreached 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 Workplaces™ by Fortune
and Great Place to Work™ 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 andbeliefs 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 ofcollaborations, 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AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 13

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 clinicalresults or practices, customer and prescriber patterns or practices, reimbursement activities andoutcomes, 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 releaseand does not undertake any obligation to update any forward-looking statements contained in thisdocument 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 andreimbursement 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 anddomestic and international trends toward managed care and healthcare cost containment. Furthermore,
our research, testing, pricing, marketing and other operations are subject to extensive regulation bydomestic 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 weroutinely obtain patents for our products and technology, the protection offered by our patents and patentapplications may be challenged, invalidated or circumvented by our competitors, or we may fail to prevailin 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 ourcurrent products and product candidate development. An outbreak of disease or similar public healththreat, such as COVID-19, and the public and governmental effort to mitigate against the spread of suchdisease, 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 ourclinical trial operations, and any such events may have a material adverse effect on our productdevelopment, 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 ofsome of our commercial products. In addition, we compete with other companies with respect to many ofour 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 existingproduct 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 ourdistributors, 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 ourbusiness 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AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 14

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 isvolatile 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 governanceobjectives. The effects of global climate change and related natural disasters could negatively affect ourbusiness 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 thecapital 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 REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 15
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

2022

2021

6,114
412
6,526

$ 12,012
820
12,832$ 11,706
721
12,427

2021

Revenues:
Product sales .............................................................................................. $Other revenues ..........................................................................................
Total revenues .......................................................................................

6,281
313
6,594

Operating expenses:
Cost of sales ...............................................................................................
Research and development .....................................................................

1,510
1,039

1,637
1,082

3,071
1,998

3,127
2,049

Acquired in-process research and development ..................................
Selling, general and administrative .........................................................
Other ............................................................................................................
Total operating expenses .....................................................................

—
1,327
542
4,418

1,505
1,384
90
5,698

—
2,555
532
8,156

1,505
2,638
151
9,470

Operating income .........................................................................................

2,176

828

4,676

2,957

Other income (expense):
Interest expense, net .................................................................................
Other (expense) income, net....................................................................

(328)
(317)

(281)
11

(623)
(847)

(566)
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

Diluted.......................................................................................................... $

2.46
2.45

$
$

0.81
0.81

$
$

5.16
5.13

$
$

3.67
3.65

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

535
537

Earnings per share:
Basic ............................................................................................................ $

$

573
576

541
544

575
578

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 16
Amgen Inc.
Consolidated Balance Sheets - GAAP(In millions)
June 30,

December 31,

2022

2021

(Unaudited)

AssetsCurrent assets:Cash, cash equivalents and marketable securities
Trade receivables, net
Inventories
Other current assets
Total current assets
Property, plant and equipment, net
Intangible assets, net
Goodwill
Other noncurrent assets
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities
Current portion of long-term debt
Total current liabilities

$

$

$

Long-term debt
Long-term tax liabilities
Other noncurrent liabilities
Total stockholders’ equity
Total liabilities and stockholders’ equity
Shares outstanding

7,183
5,327
4,554
2,258
19,322
5,158
13,927
14,865
6,022
59,294

11,801817
12,618$$$35,705
5,603
2,949
2,419
$

59,294
535

8,037
4,895
4,086
2,367
19,385
5,184
15,182
14,8906,524
61,165

12,09787
12,18433,222
6,594
2,465
6,700

$

61,165558

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 17
Amgen Inc.
GAAP to Non-GAAP Reconciliations(Dollars in millions)(Unaudited)Three months ended
June 30,2022

GAAP cost of sales ....................................................................................................................................... $Six months ended
June 30,

2021

1,510

$

2022

1,637

$

2021

3,071

$

3,127

Adjustments to cost of sales:
Acquisition-related expenses (a) ............................................................................................................

(584)

(598)

(1,194)

Other ...........................................................................................................................................................

—

(5)

—

(5)

Total adjustments to cost of sales .................................................................................................

(584)

(603)

(1,194)(1,226)(1,221)

Non-GAAP cost of sales .............................................................................................................................. $926

GAAP cost of sales as a percentage of product sales........................................................................

24.0 %

26.8 %

25.6 %

26.7 %

(9.3)

(9.8)

(10.0)(10.4)

Acquisition-related expenses (a) ............................................................................................................
Other ...........................................................................................................................................................

$

1,034

$

1,877

$

1,901

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

$

1,036

$

1,998

$

1,954

$

2,049

$

1,980

Adjustments to research and development expenses:
Acquisition-related expenses (a) ............................................................................................................

(19)

Non-GAAP research and development expenses ................................................................................ $1,020

GAAP research and development expenses as a percentage of product sales ..........................

16.5 %

17.7 %

16.6 %

(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

Acquisition-related expenses (a) ............................................................................................................

(46)

$

1,384

(44)

$

2,555

(69)

17.5 %$

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)

Non-GAAP selling, general and administrative expenses ................................................................. $1,313

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

$

1,345

$

2,526

(67)
$

2,571

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

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 18
Three months ended
June 30,2022

Six months ended
June 30,

2021

2022

2021

GAAP operating income .............................................................................................................................. $2,176

Adjustments to operating expenses..........................................................................................................

1,159

Non-GAAP operating income ..................................................................................................................... $3,335

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)

$

828

$

778
$

$

1,606

11

4,676

$

1,799
$

$

6,475

(847)

2,957
1,513

$

$

4,470

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

647

(60)

Non-GAAP other (expense) income, net ................................................................................................. $

(82)

$

54

$

(200)

(36)

GAAP income before income taxes ......................................................................................................... $

1,531

$

558

$

3,206

43

$

2,415

Adjustments to income before income taxes:
Adjustments to operating expenses..........................................................................................................

1,159

778

1,799

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

1,513

Adjustments to provision for income taxes:
Income tax effect of the above adjustments (c) ..................................................................................

216

277

405

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

GAAP tax as a percentage of income before taxes .............................................................................

14.0 %

16.8 %

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)

$

362

$

814

408

$

12.9 %

701
12.6 %

Adjustments to provision for income taxes:

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

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

Note: Numbers may not add due to rounding

$

1,017

$

4,838

1,045

$

3,167

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 19
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:

Net income........................................................................................... $Weighted-average shares for diluted EPS
Diluted EPS ......................................................................................... $Three months ended
June 30, 2022

Three months ended
June 30, 2021

GAAP

GAAP

1,317

Non-GAAP

$

2,495

537
2.45

$

537
$

4.65

GAAP

Weighted-average shares for diluted EPS
Diluted EPS ......................................................................................... $

2,793

$

544
5.13

4,838

0.81

576
$

GAAP

$

544
$

1,017

1.77

Six months ended
June 30, 2021

Non-GAAP

$

$

576

Six months ended
June 30, 2022

Net income........................................................................................... $464

Non-GAAP

8.89

2,110

Non-GAAP

$

578
$

3.65

3,167
578

$

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 currencytranslation adjustments from a nonstrategic divestiture. For the three and six months ended June 30, 2021, theadjustments 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 theamounts are deductible in the respective tax jurisdictions and the applicable tax rate(s) in those jurisdictions. Due tothese factors, the effective tax rate for the adjustments to our GAAP income before income taxes, for the three andsix months ended June 30, 2022, were 15.5% and 16.6%, respectively, compared to 33.7% and 28.1% for thecorresponding period of the prior year.

(d)

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

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 20
Amgen Inc.
Reconciliations of Cash Flows(In millions)(Unaudited)Three months ended
June 30,

Six months ended
June 30,

2022

2022

2021

4,094 $
(2,304)(4,576)(2,786)
7,989
5,203 $

4,035
890
(4,561)
364
6,266
6,630

2021

Net cash provided by operating activities ........................... $ 1,930 $ 1,931 $Net cash (used in) provided by investing activities ...........
(2,193)
1,209
Net cash used in financing activities ...................................
(1,062)(2,622)(Decrease) increase in cash and cash equivalents ..........
(1,325)
518
Cash and cash equivalents at beginning of period ...........
6,528
6,112
Cash and cash equivalents at end of period...................... $ 5,203 $ 6,630 $Net cash provided by operating activities ........................... $Capital expenditures ..............................................................
Free cash flow......................................................................... $Three months ended
June 30,

Six months ended
June 30,

2022

2021

2022

1,930 $
(246)
1,684 $

1,931 $
(185)
1,746 $

4,094 $
(436)
3,658 $

2021

4,035
(351)
3,684

AMGEN REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
Page 21Amgen Inc.
Reconciliation of GAAP EPS Guidance to Non-GAAPEPS Guidance for the Year Ending December 31, 2022
(Unaudited)

GAAP diluted EPS guidance ................................................................................................... $ 11.01
Known adjustments to arrive at non-GAAP*:
Acquisition-related expenses (a) .............................................................................................
4.02
Loss on divestiture (b) ..............................................................................................................
1.02
Net losses from equity investments ........................................................................................

—$ 12.15

—
—
0.80

4.11
1.07

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 infair 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 ..............................................................................................................
Tax rate of known adjustments discussed above .................................................................
Non-GAAP tax rate guidance .....................................................................................................

11.5 %
2.0%
14.0 %———

13.0 %
2.5%
15.0 %