News Release

One Amgen Center Drive

Thousand Oaks, CA 91320-1799

Telephone 805-447-1000

www.amgen.com

Total revenues increased 2 percent versus the first quarter of 2017 to $5.6 billion.

Product sales grew 3 percent globally. All new and recently launched products including Repatha^® (evolocumab), KYPROLIS^® (carfilzomib), Prolia^® (denosumab) and XGEVA^® (denosumab) showed double-digit growth.

GAAP earnings per share (EPS) increased 16 percent to $3.25 driven by higher product sales, a lower tax rate and lower weighted-average shares outstanding.

GAAP operating income increased 5 percent to $2.7 billion and GAAP operating margin increased 1.2 percentage points to 51.0 percent.

Non-GAAP EPS increased 10 percent to $3.47 driven by higher product sales, a lower tax rate and lower weighted-average shares outstanding.

Non-GAAP operating income increased 1 percent to $3.0 billion and non-GAAP operating margin decreased 0.7 percentage points to 56.9 percent.

2018 EPS guidance revised to $11.30-$12.28 on a GAAP basis and $12.80-$13.70 on a non-GAAP basis; total revenues guidance revised to $21.9-$22.8 billion.

The Company generated $2.6 billion of free cash flow in the first quarter versus $2.2 billion in the first quarter of 2017.

Total Revenues

GAAP Operating Income

GAAP Net Income

GAAP Earnings Per Share

Non-GAAP Operating Income

Non-GAAP Net Income

Non-GAAP EPS

Total product sales increased 3 percent for the first quarter of 2018 versus the first quarter of 2017.

Repatha sales increased 151 percent driven primarily by higher unit demand.

BLINCYTO^® (blinatumomab) sales increased 44 percent driven by higher unit demand.

Sensipar/Mimpara^® (cinacalcet) sales increased 18 percent driven primarily by higher unit demand.

KYPROLIS sales increased 17 percent driven primarily by higher unit demand.

Prolia sales increased 16 percent driven primarily by higher unit demand.

Nplate^® (romiplostim) sales increased 16 percent driven by higher unit demand.

Vectibix^® (panitumumab) sales increased 15 percent driven primarily by higher unit demand.

XGEVA sales increased 11 percent driven primarily by higher unit demand.

Parsabiv^™ (etelcalcetide) sales increased driven by our U.S. launch.

Neulasta^® (pegfilgrastim) sales decreased 5 percent driven by lower unit demand from continued declines in the use of myelosuppressive chemotherapy regimens and from favorable prior year changes in accounting estimates, offset partially by favorable changes in net selling price and inventory.

Enbrel^® (etanercept) sales decreased 6 percent driven primarily by lower unit demand and, to a lesser extent, lower net selling price and favorable prior year changes in accounting estimates, offset partially by favorable changes in inventory.

EPOGEN^® (epoetin alfa) sales decreased 10 percent driven primarily by unfavorable changes in net selling price and lower unit demand.

Aranesp^® (darbepoetin alfa) sales decreased 11 percent driven primarily by the impact of competition on unit demand.

NEUPOGEN^® (filgrastim) sales decreased 30 percent driven primarily by the impact of competition on unit demand.

Repatha^®

Parsabiv^™

BLINCYTO^®

Sensipar^® / Mimpara^®

KYPROLIS^®

Prolia^®

Nplate^®

Vectibix^®

XGEVA^®

Neulasta^®

Enbrel^®

EPOGEN^®

Aranesp^®

NEUPOGEN^®

Other**

Total product sales

Change in excess of 100%

Other includes Bergamo, MN Pharma, IMLYGIC^®, and Corlanor^®

Total Operating Expenses decreased 2 percent, with all expense categories reflecting savings from our transformation and process improvement efforts. Cost of Sales margin improved by 1.5 percentage points driven primarily by lower royalties and a reduction in amortization of intangible assets, offset partially by increasing manufacturing costs. Research & Development (R&D) expenses were flat. Selling, General & Administrative (SG&A) expenses increased 6 percent due to investments in product launches and marketed product support.

Operating Margin improved by 1.2 percentage points to 51.0 percent.

Tax Rate decreased by 4.0 percentage points due to the impacts of U.S. corporate tax reform.

Total Operating Expenses increased 2 percent, with all expense categories reflecting savings from our transformation and process improvement efforts. Cost of Sales margin improved by 0.4 percentage points driven primarily by lower royalties, offset partially by increasing manufacturing costs. R&D expenses were flat. SG&A expenses increased 6 percent due to investments in product launches and marketed product support.

Operating Margin decreased by 0.7 percentage points to 56.9 percent.

Tax Rate decreased by 4.8 percentage points due to the impacts of U.S. corporate tax reform.

Cost of Sales

% of product sales

Research & Development

% of product sales

Selling, General & Administrative

% of product sales

Other

TOTAL Operating Expenses

Operating Margin

operating income as a % of product sales

Tax Rate

Change in excess of 100%

The Company generated $2.6 billion of free cash flow in the first quarter of 2018 versus $2.2 billion in the first quarter of 2017 driven by higher net income.

The Company’s second quarter 2018 dividend of $1.32 per share declared on March 7, 2018, will be paid on June 8, 2018, to all stockholders of record as of May 17, 2018.

During the first quarter, the Company repurchased 56.4 million shares of common stock at a total cost of $10.8 billion.

Operating Cash Flow

Capital Expenditures

Free Cash Flow

Dividends Paid

Share Repurchase

Avg. Diluted Shares (millions)

Cash and Investments

Debt Outstanding

Stockholders’ Equity

Total revenues in the range of $21.9 billion to $22.8 billion.

Previously, the Company expected total revenues in the range of $21.8 billion to $22.8 billion.

On a GAAP basis, EPS in the range of $11.30 to $12.28 and a tax rate in the range of 12.5 percent to 13.5 percent.

Previously, the Company expected GAAP EPS in the range of $11.18 to $12.36, and a tax rate in the range of 13 percent to 14 percent.

On a non-GAAP basis, EPS in the range of $12.80 to $13.70 and a tax rate in the range of 13.5 percent to 14.5 percent.

Previously, the Company expected non-GAAP EPS in the range of $12.60 to $13.70, and a tax rate in the range of 14 percent to 15 percent.

Capital expenditures to be approximately $750 million.

Clinical Program

Indication

Projected Milestone

KYPROLIS

BLINCYTO

Prolia

EVENITY™(romosozumab)

U.S. regulatory submission

EU regulatory review

Aimovig

ABP 710

(biosimilar infliximab)

KANJINTI™ (ABP 980)

(biosimilar trastuzumab)

In March, the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) adopted a positive opinion to include a new indication for adults with established atherosclerotic cardiovascular disease (myocardial infarction, stroke or peripheral arterial disease) to reduce cardiovascular risk by lowering LDL-C levels.

In February, the CHMP adopted a positive opinion recommending a label variation for Neulasta to include the Neulasta Onpro^® Kit.

In April, the European Commission approved an expanded indication for the prevention of skeletal-related events in adults with advanced malignancies involving bone. The indication now covers patients with bone metastases from solid tumors and those with multiple myeloma.

In March, the U.S. Food and Drug Administration (FDA) approved BLINCYTO for the treatment of adults and children with B-cell precursor acute lymphoblastic leukemia in first or second complete remission with minimal residual disease (MRD) greater than or equal to 0.1 percent. This indication is approved under accelerated approval based on MRD response rate and hematological relapse-free survival.

In March, the CHMP adopted a positive opinion for the marketing authorization of KANJINTI, a biosimilar to Herceptin^® (trastuzumab) for the treatment of the same three types of cancer as Herceptin is approved for in the European Union, including HER2-positive metastatic breast cancer, HER2-positive early breast cancer and HER2-positive metastatic adenocarcinoma of the stomach or gastroesophageal junction.

Revenues:

Product sales

Other revenues

Total revenues

Operating expenses:

Cost of sales

Research and development

Selling, general and administrative

Other

Total operating expenses

Operating income

Interest expense, net

Interest and other income, net

Income before income taxes

Provision for income taxes

Net income

Earnings per share:

Basic

Diluted

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

Basic

Diluted

Assets

Current 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 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 deferred tax liabilities

Long-term tax liabilities

Other noncurrent liabilities

Stockholders’ equity

Total liabilities and stockholders’ equity

Shares outstanding

GAAP cost of sales

Adjustments to cost of sales:

Acquisition-related expenses (a)

Total adjustments to cost of sales

Non-GAAP cost of sales

GAAP cost of sales as a percentage of product sales

Acquisition-related expenses (a)

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

GAAP research and development expenses

Adjustments to research and development expenses:

Acquisition-related expenses (a)

Certain net charges pursuant to our restructuring initiative

Total adjustments to research and development expenses

Non-GAAP research and development expenses

GAAP research and development expenses as a percentage of product sales

Acquisition-related expenses (a)

Certain net charges pursuant to our restructuring initiative

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

GAAP selling, general and administrative expenses

Adjustments to selling, general and administrative expenses:

Acquisition-related expenses (a)

Certain net charges pursuant to our restructuring initiative

Total adjustments to selling, general and administrative expenses

Non-GAAP selling, general and administrative expenses

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

Acquisition-related expenses (a)

Certain net charges pursuant to our restructuring initiative

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

GAAP operating expenses

Adjustments to operating expenses:

Adjustments to cost of sales

Adjustments to research and development expenses

Adjustments to selling, general and administrative expenses

Certain net charges pursuant to our restructuring initiative (b)

Acquisition-related adjustments

Total adjustments to operating expenses

Non-GAAP operating expenses

GAAP operating income

Adjustments to operating expenses

Non-GAAP operating income

GAAP operating income as a percentage of product sales

Adjustments to cost of sales

Adjustments to research and development expenses

Adjustments to selling, general and administrative expenses

Certain net charges pursuant to our restructuring initiative (b)

Acquisition-related adjustments

Non-GAAP operating income as a percentage of product sales

GAAP interest and other income, net

Adjustments to other income (c)

Non-GAAP interest and other income, net

GAAP income before income taxes

Adjustments to operating expenses

Adjustments to other income (c)

Non-GAAP income before income taxes

GAAP provision for income taxes

Adjustments to provision for income taxes:

Income tax effect of the above adjustments (d)

Other income tax adjustments (e)

Total adjustments to provision for income taxes

Non-GAAP provision for income taxes

GAAP tax as a percentage of income before taxes

Adjustments to provision for income taxes:

Income tax effect of the above adjustments (d)

Other income tax adjustments (e)

Total adjustments to provision for income taxes

Non-GAAP tax as a percentage of income before taxes

GAAP net income

Adjustments to net income:

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

Other income tax adjustments (e)

Total adjustments to net income

Non-GAAP net income

Net income

Weighted-average shares for diluted EPS

Diluted earnings per share

The adjustments related primarily to non-cash amortization of intangible assets acquired in business combinations.

For the three months ended March 31, 2017, the adjustment related primarily to severance expenses associated with our restructuring initiative.

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

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 rates for the adjustments to our GAAP income before income taxes, for the three months ended March 31, 2018 was 27.0%, compared with 29.5% for the corresponding period of the prior year.

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

Net cash provided by operating activities

Net cash provided by (used in) investing activities

Net cash used in financing activities

Increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Net cash provided by operating activities

Capital expenditures

Free cash flow

GAAP diluted EPS guidance

Known adjustments to arrive at non-GAAP*:

Acquisition-related expenses (a)

Restructuring charges

Tax adjustments (b)

Non-GAAP diluted EPS guidance

The known adjustments are presented net of their related tax impact, which amount to approximately $0.40 per share, in the aggregate.

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

The adjustments relate primarily to certain acquisition items and prior period items excluded from GAAP earnings.

GAAP tax rate guidance

Tax rate effect of known adjustments discussed above

Non-GAAP tax rate guidance