Amgen Announces 34% Increase in Earnings Per Share and Stock Split

Business Wire, Jan 28, 1999

THOUSAND OAKS, Calif.--(BUSINESS WIRE)--Jan. 28, 1999--Amgen (NASDAQ:AMGN) today announced that earnings per share for the fourth quarter ended December 31, 1998 increased 34 percent, to $0.90 from $0.67 for the fourth quarter a year ago. Net income for the fourth quarter of 1998 increased 33 percent, to $239 million from $180 million for the fourth quarter of 1997.

For the full year 1998, earnings per share increased 39 percent, to $3.27 from $2.35 for the full year 1997, and net income increased 34 percent, to $863 million from $644 million. Earnings per share in 1997 included an after-tax charge of $96 million, or $0.35 per share, related to a spillover arbitration award to Ortho Pharmaceuticals. Excluding that charge, full-year 1998 earnings per share would have increased 21 percent, and net income would have increased 17 percent.

Included in fourth quarter earnings per share is $23 million resulting from reduced uncertainty for the Company's potential spillover liability to Ortho Pharmaceuticals. Also included in the quarter is the write-down of certain equity investments. These two items substantially offset one another.

Amgen also announced a two-for-one split of the Company's common stock in the form of a 100 percent stock dividend. The dividend will be distributed on February 26, 1999 to stockholders of record on February 12, 1999.

Total product sales for the quarter increased 23 percent, to $695 million from $564 million for the fourth quarter of 1997. For the full year, total product sales increased 13 percent, to $2.5 billion from $2.2 billion for the full year 1997.

"1998 was a very productive year for Amgen. Our strong sales reflect, in part, the success of our patient outcomes-based marketing programs. These programs are designed to help physicians optimize treatment to deliver improved patient outcomes," said Gordon Binder, chairman and chief executive officer.

Sales of EPOGEN(R) (Epoetin alfa) for the fourth quarter increased 35 percent, to $391 million from $289 million for the fourth quarter of 1997. For the full year, sales of EPOGEN increased 19 percent, to $1.38 billion from $1.16 billion.

For the fourth quarter of 1998, worldwide sales of NEUPOGEN(R) (Filgrastim) increased 10 percent, to $298 million from $272 million for the fourth quarter of 1997. For the full year, total sales of NEUPOGEN increased 6 percent, to $1.12 billion from $1.06 billion.

For the fourth quarter of 1998, sales of INFERGEN(R) (Interferon alfacon-1) increased to $6 million from $3 million. For the full year 1998, INFERGEN's first full year on the market, sales increased to $16 million from $3 million. INFERGEN was launched in October 1997.

"We remain committed to our development of breakthrough therapeutics which address significant unmet medical needs. In 1999, we plan to invest more than $750 million in our efforts to discover, develop and deliver these products to patients in need," Binder said.

Just before the end of the fourth quarter, Amgen won a significant legal decision when a panel of arbitrators affirmed that Amgen alone has rights to its red blood cell stimulating product candidate, novel erythropoiesis stimulating protein (NESP). As a result of this binding arbitration decision, Amgen can develop and, if approved, market NESP worldwide except Japan and China for all indications. More than 2,000 patients are now enrolled in NESP clinical trials around the world, approximately 1,500 on treatment with NESP.

During the quarter, Amgen presented preliminary phase 2 data at the annual meeting of the American Society of Hematology demonstrating that neutrophil recovery following a single injection of a sustained duration version of NEUPOGEN was equal to that of multiple daily doses of NEUPOGEN. In a separate study, the Company's phase 3 trial of NEUPOGEN in treating pneumonia with severe sepsis did not demonstrate a statistically significant benefit in reducing mortality.

This news release contains forward-looking statements that 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 Forms 10-Q and 10-K. Amgen conducts research in the biotechnology/ pharmaceutical field where it is difficult to move from concept to product; consequently, there can be no guarantee that any particular product candidate will be successful and become a commercial product.

Furthermore, our research, testing, pricing, marketing development, usage and pricing of our products.by our competitors.

Amgen is a global bionsolidated Statements of Operations (In million 14.7

Total revenues 92.4 165.1 Selling, general and administraexpense, net (1.3) share

$0.90 $0.67

Shares used in calculation of:(a)

Basic earnings per share 254.6 261.1

Diluted earnings per share 265.4 269.2

(a) Does not reflect the announced two-for-one split of the Company's