AMGN - Amgen Inc. - Bank of America Merrill Lynch Global Healthcare Conference Transcript

    Company Name:Amgen Inc.
    Event Title:Bank of America Merrill Lynch Global Healthcare Conference Transcript
    Event Date:13-Sep-2013
    Event Time:08:00 AM ET


    Whitney Wolfe

    Analyst, Bank of America Merrill Lynch
    I am Whitney Wolfe. I am New York based Healthcare sales. On behalf of Rachel McMinn and U.S. biotech team we're glad to have Arvind Sood from Amgen and with that I will pass it off. Thanks.

    Arvind Sood

    Vice President of Investor Relations
    Great. Thank you, Whitney. Good afternoon everybody so what I would like to do is take the first few minutes and talk to you little bit out plans to drive the long-term growth and the strategies that we are deploying to drive this growth. And what I'd like to do as I run through these slides as to kind of use these slides to -- some of the topics that we can delve into greater detail once we get in to Q&A portion.

    But before I do that, Whitney, I want to thank you for your invitation; it's just great to be here at this conference.

    So let me begin with -- did I hit the wrong button? Okay, there we go.

    So, let me begin with kind of highlighting what our expectations are near term; between now and 2015, our expectation is to deliver attractive earnings per share . And of course this is going to be a largely hinged on the fact that we've change and the profit share agreement that we have on one of our key products Enbrel that we commercialized together Pfizer and this profit share agreement actually comes to an end at the end of this year.

    And it converts into a royalty agreement, but because of the change, the impact that this is going to have on our operating profitability is significant, beginning with 2014 and it's a point that I will come back to in a bit more detail. But I'll focus the bulk of my comments today on the strategies that we are deploying to accelerate our long-term growth.

    Now recently, we announced the acquisition of Onyx. This allows us to gain entry into an attractive and a growing multiple myeloma franchise. We are also very excited about our pipeline; we have several opportunities in the pipeline. Again I'll briefly highlight those as a part of my comments today.

    We've also made a decision to get into the biosimilars business and their six molecules that we intend to develop and I'll embellish those a bit more. And lastly, we have made some significant efforts to expand our presence in international markets more notably, China and Japan and it's also a point that I will come back to.

    And I would also note that we remain committed to returning capital back to our shareholders. We are I believe the only company to offer a dividend . We initiated a dividend a couple of years ago; and over the last couple of years on average, we have increased the dividend 30% each year and despite this acquisition that we announced recently, we have also reiterated our commitment to continue to increase the dividend meaningfully.

    So with that, let me just briefly talk about our base business and again the strategies that we expect to deploy to continue to grow the base business. Over the years, the portfolio, Amgen's portfolio of products has become increasingly diverse.

    Now it goes without saying that our ESA products EPOGEN and Aranesp , our filgrastim products, NEUPOGEN and Neulasta continue to represent a significant portion of our revenues . But products like ENBREL , which are generating sales in excess of $4 billion have become increasingly important. Products like Sensipar , this is a product that's now generating revenues in excess of $1 billion and continues to grow very nicely. So again, if you look at the overall portfolio in the context of some of our legacy products as well as the newer launch products like Prolia and XGEVA , we have a portfolio that has become increasingly diverse.

    Let me just spend a few minutes talking about a few of our existing in-market products. Neulasta and NEUPOGEN is our largest franchise, collectively it generates revenues in excess of about $5 billion. And we have established a strong foundation of both safety and efficacy with these products.

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