Stock Market Earnings Video Report AMGN Mixed Results

Date: 1/24/2011

Stock Market Earnings Video Report AMGN Mixed ResultsAmgens Fourth Quarter 2010 Adjusted Earnings Per Share Increased 11 Percent to $1.17; Full Year 2010 Adjusted Earnings Per Share Increased 6 Percent to $5.21Fourth Quarter 2010 Revenue Increased 1 Percent to $3.8 Billion; Full Year 2010 Revenue Increased 3 Percent to $15.1 BillionFourth Quarter 2010 GAAP Earnings Per Share Increased 17 Percent to $1.08; Full Year 2010 GAAP Earnings Per Share Increased 6 Percent to $4.792011 Total Revenue Expected to be in the Range of $15.1 Billion to $15.5 Billion2011 Adjusted Earnings Per Share Expected to be in the Range of $5.00 to $5.20

Amgen (Nasdaq:AMGN - News) reported adjusted earnings per share (EPS) of $1.17 for the fourth quarter of 2010, an increase of 11 percent compared to $1.05 for the fourth quarter of 2009. Adjusted net income increased 4 percent to $1,103 million in the fourth quarter of 2010 compared to $1,065 million in the fourth quarter of 2009.Full year 2010 adjusted EPS were $5.21 versus $4.91 in 2009, a 6 percent increase.

Full year 2010 adjusted net income increased slightly to $5,024 million versus $5,014 million in 2009.Total revenue increased 1 percent during the fourth quarter of 2010 to $3,841 million versus $3,809 million in the fourth quarter of 2009. For the full year 2010, total revenue increased 3 percent to $15,053 million from $14,642 million in 2009."2010 was a strong year with approvals of Prolia and XGEVA," said Kevin Sharer, chairman & CEO.

"We delivered solid EPS growth while absorbing the impact of health care reform. Our priorities in 2011 are to make Prolia and XGEVA successes, advance and enrich our pipeline, and build value for our shareholders."

Adjusted EPS and adjusted net income for the fourth quarter and full year 2010 and 2009 exclude, for the applicable periods, stock option expense; certain expenses related to acquisitions, impairments and restructurings and cost savings initiatives; non-cash interest expense resulting from a change in accounting for our convertible notes; the income tax benefit (expense) as a result of resolving certain non-routine transfer pricing issues with tax authorities and certain other items.

These adjustments and other items are presented on the attached reconciliation tables.On a reported basis and calculated in accordance with United States (U.S.) Generally Accepted Accounting Principles (GAAP), Amgen's GAAP diluted EPS were $1.08 in the fourth quarter of 2010, an increase of 17 percent compared to $0.92 in the same quarter last year. GAAP net income of $1,022 million in the fourth quarter of 2010 increased 10 percent from $931 million in the fourth quarter of 2009. For the full year 2010, Amgen's reported GAAP EPS were $4.79, an increase of 6 percent compared to $4.51 for the full year 2009. For the full year 2010, GAAP net income increased slightly to $4,627 million versus $4,605 million for the full year 2009.

GAAP net income for the fourth quarter of 2010 was positively impacted by a favorable tax settlement as a result of settling certain non-routine transfer pricing issues aggregating $113 million, partially offset by an impairment charge associated with the Company's recently announced transaction involving its manufacturing operation in Fremont, California aggregating $118 million on a pretax basis ($74 million after tax).

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