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Amgen Reports First Quarter 2019 Financial Results

THOUSAND OAKS, Calif., April 30, 2019 /PRNewswire/ -- Amgen (AMGN) today announced financial results for the first quarter of 2019. Key results include:

  • Total revenues were unchanged at $5.6 billion in comparison to the first quarter of 2018.
  • GAAP earnings per share (EPS) decreased 2 percent to $3.18 driven by higher total operating expenses, offset partially by lower weighted-average shares outstanding.
  • Non-GAAP EPS increased 3 percent to $3.56 benefited by lower weighted-average shares outstanding.
  • The Company generated $1.7 billion of free cash flow in the first quarter versus $2.6 billion in the first quarter of 2018.
  • 2019 total revenues guidance revised to $22.0-$22.9 billion; EPS guidance to $11.68-$12.73 on a GAAP basis and $13.25-$14.30 on a non-GAAP basis.

"We continue to generate strong, volume-driven growth for our newer products, while effectively defending our mature products," said Robert A. Bradway, chairman and chief executive officer. "We are also advancing a record number of first-in-class molecules targeting significant areas of unmet need through our pipeline."

$Millions, except EPS and percentages


Q1'19


Q1'18


YOY Δ

Total Revenues


$

5,557



$

5,554



—%

GAAP Operating Income


$

2,472



$

2,726



(9%)

GAAP Net Income


$

1,992



$

2,311



(14%)

GAAP EPS


$

3.18



$

3.25



(2%)

Non-GAAP Operating Income


$

2,770



$

3,038



(9%)

Non-GAAP Net Income


$

2,230



$

2,466



(10%)

Non-GAAP EPS


$

3.56



$

3.47



3%


References in this release to "non-GAAP" measures, measures presented "on a non-GAAP basis" and to "free cash flow" (computed by subtracting capital expenditures from operating cash flow) refer to non-GAAP financial measures. Adjustments to the most directly comparable GAAP financial measures and other items are presented on the attached reconciliations.

Product Sales Performance

  • Total product sales decreased 1 percent for the first quarter of 2019 versus the first quarter of 2018.
  • Repatha sales increased 15 percent driven primarily by higher unit demand, offset substantially by net selling price.
  • Prolia sales increased 20 percent driven primarily by higher unit demand.
  • Aimovig® (erenumab-aooe) recorded sales of $59 million in the quarter.
  • Parsabiv® (etelcalcetide) sales increased 207 percent driven by higher unit demand, offset partially by net selling price.
  • KYPROLIS sales increased 10 percent driven primarily by higher unit demand.
  • XGEVA® (denosumab) sales increased 6 percent driven primarily by higher unit demand.
  • Vectibix® (panitumumab) sales increased 1 percent.
  • Nplate® (romiplostim) sales increased 6 percent driven by higher unit demand.
  • BLINCYTO® (blinatumomab) sales increased 41 percent driven by higher unit demand.
  • Enbrel® (etanercept) sales increased 4 percent driven primarily by favorable impacts from changes in accounting estimates of sales deductions and product returns and a slight increase in net selling price, offset partially by unfavorable changes in inventory.
  • Neulasta® (pegfilgrastim) sales decreased 12 percent driven primarily by lower net selling price and, to a lesser extent, changes in inventory.
  • NEUPOGEN® (filgrastim) sales decreased 29 percent driven primarily by the impact of competition on unit demand and net selling price.
  • EPOGEN® (epoetin alfa) sales decreased 10 percent driven primarily by lower net selling price.
  • Aranesp® (darbepoetin alfa) sales decreased 9 percent driven primarily by the impact of competition on unit demand.
  • Sensipar®/Mimpara® (cinacalcet) sales decreased 57 percent driven primarily by the impact of competition on unit demand and, to a lesser extent, changes in inventory.

Product Sales Detail by Product and Geographic Region

$Millions, except percentages

Q1'19


Q1'18


YOY Δ


US


ROW


TOTAL


TOTAL


TOTAL

Repatha®

$

83



$

58



$

141



$

123



15%

Prolia®

390



202



592



494



20%

Aimovig®

59





59





*

Parsabiv®

109



17



126



41



*

KYPROLIS®

154



91



245



222



10%

XGEVA®

356



115



471



445



6%

Vectibix®

78



92



170



169



1%

Nplate®

114



75



189



179



6%

BLINCYTO®

40



29



69



49



41%

Enbrel®

1,106



45



1,151



1,105



4%

Neulasta®

893



128



1,021



1,155



(12%)

NEUPOGEN®

50



23



73



103



(29%)

EPOGEN®

219





219



244



(10%)

Aranesp®

182



232



414



454



(9%)

Sensipar®/Mimpara®

135



78



213



497



(57%)

Biosimilars**



55



55





*

Other***

23



55



78



63



24%

Total product sales

$

3,991



$

1,295



$

5,286



$

5,343



(1%)











* Change in excess of 100%







** Biosimilars includes AMGEVITA™ and KANJINTI™.

*** Other includes MN Pharma, Bergamo, EVENITY™, Corlanor® and IMLYGIC®.

KANJINTI™ trade name is provisionally approved by the FDA.

Operating Expense, Operating Margin and Tax Rate Analysis

On a GAAP basis:

  • Total Operating Expenses increased 9 percent. Cost of Sales margin increased 2.3 percentage points primarily due to product mix and higher costs of manufacturing, offset partially by lower royalty costs. Research & Development (R&D) expenses increased 16 percent driven primarily by increased spending in research and early pipeline in support of our oncology programs, as changes in late-stage programs and marketed products were not significant. Selling, General & Administrative (SG&A) expenses increased 2 percent primarily due to investments in launch products.
  • Operating Margin decreased 4.2 percentage points to 46.8 percent.
  • Tax Rate increased 2.1 percentage points primarily due to a prior-year tax benefit associated with intercompany sales under U.S. corporate tax reform.

On a non-GAAP basis:

  • Total Operating Expenses increased 11 percent. Cost of Sales margin increased 2.0 percentage points primarily due to product mix and higher costs of manufacturing, offset partially by lower royalty costs. R&D expenses increased 16 percent driven primarily by increased spending in research and early pipeline in support of our oncology programs, as changes in late-stage programs and marketed products were not significant. SG&A expenses increased 5 percent primarily due to investments in launch products.
  • Operating Margin decreased 4.5 percentage points to 52.4 percent.
  • Tax Rate increased 0.9 percentage points primarily due to a prior-year tax benefit associated with intercompany sales under U.S. corporate tax reform.

 

$Millions, except percentages

GAAP


Non-GAAP


Q1'19


Q1'18


YOY Δ


Q1'19


Q1'18


YOY Δ

Cost of Sales

$

1,055



$

944



12%


$

779



$

678



15%

% of product sales

20.0%



17.7%



2.3 pts.


14.7%



12.7%



2.0 pts.

Research & Development

$

879



$

760



16%


$

859



$

739



16%

% of product sales

16.6%



14.2%



2.4 pts.


16.3%



13.8%



2.5 pts.

Selling, General & Administrative

$

1,154



$

1,127



2%


$

1,149



$

1,099



5%

% of product sales

21.8%



21.1%



0.7 pts.


21.7%



20.6%



1.1 pts.

Other

$

(3)



$

(3)



—%


$



$



NM

Total Operating Expenses

$

3,085



$

2,828



9%


$

2,787



$

2,516



11%













Operating Margin












operating income as % of product sales

46.8%



51.0%



(4.2) pts.


52.4%



56.9%



(4.5) pts.













Tax Rate

13.9%



11.8%



2.1 pts.


14.6%



13.7%



0.9 pts.













NM: Not Meaningful





pts: percentage points







Cash Flow and Balance Sheet    

  • The Company generated $1.7 billion of free cash flow in the first quarter of 2019 versus $2.6 billion in the first quarter of 2018 driven by higher sales deductions paid to customers and lower net income.
  • The Company's first quarter 2019 dividend of $1.45 per share was declared on Dec. 7, 2018, and was paid on March 8, 2019, to all stockholders of record as of Feb. 15, 2019, representing a 10 percent increase from the dividend paid in each of the previous four quarters.
  • During the first quarter, the Company repurchased 15.9 million shares of common stock at a total cost of $3.0 billion. At the end of the first quarter, the Company had $2.1 billion remaining under its stock repurchase authorization.

 

$Billions, except shares


Q1'19


Q1'18


YOY Δ


Operating Cash Flow


$

1.8



$

2.7



$

(0.9)



Capital Expenditures


0.1



0.2



0.0



Free Cash Flow


1.7



2.6



(0.8)



Dividends Paid


0.9



1.0



(0.1)



Share Repurchase


3.0



10.8



(7.8)



Average Diluted Shares (millions)


626



711



(85)











Cash and Investments


26.3



32.2



(5.9)



Debt Outstanding


33.0



35.5



(2.5)



Stockholders' Equity


10.8



15.6



(4.8)











Note: Numbers may not add due to rounding


2019 Guidance

For the full year 2019, the Company now expects:

  • Total revenues in the range of $22.0 billion to $22.9 billion.
  • On a GAAP basis, EPS in the range of $11.68 to $12.73 and a tax rate in the range of 13.0 percent to 14.0 percent.
  • On a non-GAAP basis, EPS in the range of $13.25 to $14.30 and a tax rate in the range of 14.0 percent to 15.0 percent.
  • Capital expenditures to be approximately $700 million.

First Quarter Product and Pipeline Update

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

Oncology Pipeline

  • In June 2019, the Company will present the following clinical data at the Annual Meeting of the American Society of Clinical Oncology in Chicago:

EVENITY™ (romosozumab-aqqg)

  • In April, the U.S. Food and Drug Administration (FDA) approved EVENITY for the treatment of osteoporosis in postmenopausal women at high risk for fracture, defined as a history of osteoporotic fracture, or multiple risk factors for fracture; or patients who have failed or are intolerant to other available osteoporosis therapy.

Omecamtiv mecarbil

  • In March, the Data Monitoring Committee recommended that the Phase 3 GALACTIC-HF cardiovascular outcomes clinical trial continue without changes to its conduct after a planned interim analysis, which included consideration of pre-specified criteria for futility.

Corlanor® (ivabradine)

  • In April, Corlanor was approved for the treatment of stable symptomatic heart failure due to dilated cardiomyopathy in pediatric patients aged 6 months and older, who are in sinus rhythm with an elevated heart rate.

Aimovig

  • In March, the FDA approved a supplemental Biologics License Application to add 140 mg/mL single-dose autoinjector and pre-filled syringe dosing options.

EVENITY is developed in collaboration with UCB globally, as well as our joint venture partner Astellas in Japan

Omecamtiv mecarbil is being developed under a collaboration between Amgen and Cytokinetics, with funding and strategic support from Servier

Aimovig is developed in collaboration with Novartis

Non-GAAP Financial Measures
In this news release, management has presented its operating results for the first quarters of 2019 and 2018, in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and on a non-GAAP basis. In addition, management has presented its full year 2019 EPS and tax rate 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, restructuring and certain other items from the related GAAP financial measures. 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 first quarters of 2019 and 2018. 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.

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 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 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. 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. 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 new indications for existing products 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 acquire other companies or products and to integrate the operations of companies 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 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
Trish Hawkins, 805-447-5631 (media)
Arvind Sood, 805-447-1060 (investors)

 

Amgen Inc.

Consolidated Statements of Income - GAAP

(In millions, except per-share data)

(Unaudited)



Three months ended
March 31,


2019


2018

Revenues:




Product sales

$

5,286



$

5,343


Other revenues

271



211


Total revenues

5,557



5,554






Operating expenses:




Cost of sales

1,055



944


Research and development

879



760


Selling, general and administrative

1,154



1,127


Other

(3)



(3)


Total operating expenses

3,085



2,828






Operating income

2,472



2,726






Interest expense, net

343



338


Interest and other income, net

185



231






Income before income taxes

2,314



2,619






Provision for income taxes

322



308






Net income

$

1,992



$

2,311






Earnings per share:




Basic

$

3.20



$

3.27


Diluted

$

3.18



$

3.25






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




Basic

622



707


Diluted

626



711


 

Amgen Inc.

Consolidated Balance Sheets - GAAP

(In millions)



March 31,


December 31,


2019


2018


(Unaudited)



Assets

Current assets:




Cash, cash equivalents and marketable securities

$

26,301



$

29,304


Trade receivables, net

3,771



3,580


Inventories

3,016



2,940


Other current assets

2,063



1,794


Total current assets

35,151



37,618






Property, plant and equipment, net

4,892



4,958


Intangible assets, net

7,124



7,443


Goodwill

14,692



14,699


Other assets

2,138



1,698


Total assets

$

63,997



$

66,416






Liabilities and Stockholders' Equity

Current liabilities:




Accounts payable and accrued liabilities

$

9,001



$

9,069


Current portion of long-term debt

3,705



4,419


Total current liabilities

12,706



13,488






Long-term debt

29,319



29,510


Long-term deferred tax liabilities

811



864


Long-term tax liabilities

8,869



8,770


Other noncurrent liabilities

1,460



1,284


Total stockholders' equity

10,832



12,500


Total liabilities and stockholders' equity

$

63,997



$

66,416






Shares outstanding

614



630


 

Amgen Inc.

GAAP to Non-GAAP Reconciliations

(Dollars in millions)

(Unaudited)



Three months ended
March 31,


2019


2018

GAAP cost of sales

$

1,055



$

944


Adjustments to cost of sales:




Acquisition-related expenses (a)

(276)



(266)


Total adjustments to cost of sales

(276)



(266)


Non-GAAP cost of sales

$

779



$

678






GAAP cost of sales as a percentage of product sales

20.0

%


17.7

%

Acquisition-related expenses (a)

-5.3



-5.0


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

14.7

%


12.7

%





GAAP research and development expenses

$

879



$

760


Adjustments to research and development expenses:




Acquisition-related expenses (a)

(20)



(21)


Total adjustments to research and development expenses

(20)



(21)


Non-GAAP research and development expenses

$

859



$

739






GAAP research and development expenses as a percentage of product sales

16.6

%


14.2

%

Acquisition-related expenses (a)

-0.3



-0.4


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

16.3

%


13.8

%





GAAP selling, general and administrative expenses

$

1,154



$

1,127


Adjustments to selling, general and administrative expenses:




Acquisition-related expenses (a)

(4)



(25)


Certain net charges pursuant to our restructuring initiative

(1)



(3)


Total adjustments to selling, general and administrative expenses

(5)



(28)


Non-GAAP selling, general and administrative expenses

$

1,149



$

1,099






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

21.8

%


21.1

%

Acquisition-related expenses (a)

-0.1



-0.5


Certain net charges pursuant to our restructuring initiative

0.0



0.0


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

21.7

%


20.6

%





GAAP operating expenses

$

3,085



$

2,828


Adjustments to operating expenses:




Adjustments to cost of sales

(276)



(266)


Adjustments to research and development expenses

(20)



(21)


Adjustments to selling, general and administrative expenses

(5)



(28)


Certain net charges pursuant to our restructuring initiative

1



(1)


Acquisition-related adjustments

2



4


Total adjustments to operating expenses

(298)



(312)


Non-GAAP operating expenses

$

2,787



$

2,516






GAAP operating income

$

2,472



$

2,726


Adjustments to operating expenses

298



312


Non-GAAP operating income

$

2,770



$

3,038






GAAP operating income as a percentage of product sales

46.8

%


51.0

%

Adjustments to cost of sales

5.3



5.0


Adjustments to research and development expenses

0.3



0.4


Adjustments to selling, general and administrative expenses

0.1



0.5


Certain net charges pursuant to our restructuring initiative

0.0



0.0


Acquisition-related adjustments

-0.1



0.0


Non-GAAP operating income as a percentage of product sales

52.4

%


56.9

%





GAAP interest and other income, net

$

185



$

231


Adjustments to other income (b)



(75)


Non-GAAP interest and other income, net

$

185



$

156






GAAP income before income taxes

$

2,314



$

2,619


Adjustments to operating expenses

298



312


Adjustments to other income (b)



(75)


Non-GAAP income before income taxes

$

2,612



$

2,856






GAAP provision for income taxes

$

322



$

308


Adjustments to provision for income taxes:




Income tax effect of the above adjustments (c)

68



64


Other income tax adjustments (d)

(8)



18


Total adjustments to provision for income taxes

60



82


Non-GAAP provision for income taxes

$

382



$

390






GAAP tax as a percentage of income before taxes

13.9

%


11.8

%

Adjustments to provision for income taxes:




Income tax effect of the above adjustments (c)

1.0



1.3


Other income tax adjustments (d)

-0.3



0.6


Total adjustments to provision for income taxes

0.7



1.9


Non-GAAP tax as a percentage of income before taxes

14.6

%


13.7

%





GAAP net income

$

1,992



$

2,311


Adjustments to net income:




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

230



173


Other income tax adjustments (d)

8



(18)


Total adjustments to net income

238



155


Non-GAAP net income

$

2,230



$

2,466


 

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
March 31, 2019


Three months ended
March 31, 2018


GAAP


Non-GAAP


GAAP


Non-GAAP









Net income

$

1,992



$

2,230



$

2,311



$

2,466










Weighted-average shares for diluted EPS

626



626



711



711










Diluted EPS

$

3.18



$

3.56



$

3.25



$

3.47




(a)

The adjustments related primarily to noncash amortization of intangible assets acquired in business combinations.



(b)

For three months ended March 31, 2018, the adjustment related to the net gain associated with the Kirin-Amgen (K-A) share acquisition.



(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 expense, depends on whether the amounts are deductible in the respective tax jurisdictions and the applicable tax rate(s) in those jurisdictions. Due to these factors, the effective tax rate for the adjustments to our GAAP income before income taxes, for the three months ended March 31, 2019, was 22.8%, compared with 27.0% for the corresponding period of the prior year.



(d)

For three months ended March 31, 2019, the adjustment related to prior-period items excluded from GAAP earnings. For three months ended March 31, 2018, the adjustment related primarily to the K-A acquisition.

 

Amgen Inc.

Reconciliations of Cash Flows

(In millions)

(Unaudited)



Three months ended
March 31,


2019


2018

Net cash provided by operating activities

$

1,845



$

2,727


Net cash provided by investing activities

3,555



14,906


Net cash used in financing activities

(4,987)



(11,692)


Increase in cash and cash equivalents

413



5,941


Cash and cash equivalents at beginning of period

6,945



3,800


Cash and cash equivalents at end of period

$

7,358



$

9,741





Three months ended
March 31,


2019


2018

Net cash provided by operating activities

$

1,845



$

2,727


Capital expenditures

(116)



(155)


Free cash flow

$

1,729



$

2,572


 

Reconciliation of GAAP EPS Guidance to Non-GAAP

EPS Guidance for the Year Ending December 31, 2019

(Unaudited)


GAAP diluted EPS guidance


$

11.68


$

12.73


Known adjustment to arrive at non-GAAP*:





Acquisition-related expenses (a)



1.56


Tax adjustments



0.01


Non-GAAP diluted EPS guidance


$

13.25


$

14.30



* The known adjustments are presented net of their related tax impact, which amount to approximately $0.41 per share.


(a) The adjustments relate primarily to non-cash amortization of intangible assets acquired in business combinations.


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

 

Reconciliation of GAAP Tax Rate Guidance to Non-GAAP

Tax Rate Guidance for the Year Ending December 31, 2019

(Unaudited)


GAAP tax rate guidance


13.0

%

14.0

%

Tax rate of known adjustments discussed above



1.0%


Non-GAAP diluted EPS guidance


14.0

%

15.0

%

 

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

 

Cision

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