News Release

One Amgen Center Drive

Thousand Oaks, CA 91320-1799

Telephone 805-447-1000

www.amgen.com

For the fourth quarter, total revenues decreased 3 percent versus the fourth quarter of 2016 to $5.8 billion. For the full year, total revenues decreased 1 percent to $22.8 billion.

GAAP loss per share of $5.89 for the fourth quarter and GAAP earnings per share (EPS) of $2.69 for the full year include a $6.1 billion charge related to impacts of U.S. corporate tax reform.

Non-GAAP EPS were flat in the fourth quarter at $2.89. Non-GAAP EPS increased 8 percent for the full year to $12.58, driven by higher operating margins and interest income and a lower share count.

Free cash flow for the full year grew 9 percent to $10.5 billion, driven by higher operating income and favorable changes in working capital. At year end, cash and investments totaled $41.7 billion.

The Company expects to increase investments to drive additional volume-driven growth of novel medicines in large patient populations. These plans include a new U.S. manufacturing plant.

Cash returned to shareholders totaled $6.5 billion in 2017 through dividends and share repurchases. The Company’s Board of Directors authorized an additional $10 billion of share repurchases. This authorization is in addition to the existing $4.4 billion in share repurchase authorization as of Dec. 31, 2017.

2018 total revenues guidance of $21.8-$22.8 billion; EPS guidance of $11.18-$12.36 on a GAAP basis and $12.60-$13.70 on a non-GAAP basis.

Total Revenues

GAAP Operating Income

GAAP Net (Loss) Income

GAAP (Loss) Earnings Per Share

Non-GAAP Operating Income

Non-GAAP Net Income

Non-GAAP EPS

Change in excess of 100%

Total product sales decreased 2 percent for the fourth quarter of 2017 versus the fourth quarter of 2016. Product sales were flat for the full year.

Repatha sales increased 69 percent for the fourth quarter and 126 percent for the full year driven by higher unit demand.

BLINCYTO^® (blinatumomab) sales increased 59 percent for the fourth quarter and 52 percent for the full year driven by higher unit demand and, to a lesser extent, net selling price.

Prolia^® (denosumab) sales increased 24 percent for the fourth quarter and 20 percent for the full year driven by higher unit demand.

KYPROLIS^® (carfilzomib) sales increased 24 percent for the fourth quarter and 21 percent for the full year driven by higher unit demand.

Vectibix^® (panitumumab) sales increased 11 percent for the fourth quarter and 5 percent for the full year driven by higher unit demand.

Nplate^® (romiplostim) sales increased 10 percent for the fourth quarter and the full year driven by higher unit demand.

XGEVA^® (denosumab) sales increased 4 percent for the fourth quarter driven by higher unit demand, favorable changes in inventory levels and net selling price. Sales increased 3 percent for the full year driven primarily by higher unit demand.

Sensipar/Mimpara^® (cinacalcet) sales were flat for the fourth quarter as higher net selling price was offset by unfavorable changes in inventory levels. Sales increased 9 percent for the full year driven by net selling price and, to a lesser extent, higher unit demand.

Neulasta^® (pegfilgrastim) sales were flat for the fourth quarter as lower unit demand was offset by favorable changes in accounting estimates. Sales decreased 2 percent for the full year driven by lower unit demand offset partially by net selling price.

Aranesp^® (darbepoetin alfa) sales decreased 7 percent for the fourth quarter driven primarily by lower unit demand, favorable prior year changes in accounting estimates and unfavorable changes in foreign exchange rates. Sales decreased 2 percent for the full year as unfavorable changes in foreign exchange rates were offset partially by higher unit demand.

Enbrel^® (etanercept) sales decreased 13 percent for the fourth quarter and 9 percent for the full year driven by lower unit demand and net selling price.

EPOGEN^® (epoetin alfa) sales decreased 15 percent for the fourth quarter and the full year driven primarily by lower net selling price.

NEUPOGEN^® (filgrastim) sales decreased 27 percent for the fourth quarter and 28 percent for the full year driven by lower unit demand.

Repatha^®

BLINCYTO^®

Prolia^®

KYPROLIS^®

Vectibix^®

Nplate^®

XGEVA^®

Sensipar^® / Mimpara^®

Neulasta^®

Aranesp^®

Enbrel^®

EPOGEN^®

NEUPOGEN^®

Other*

Total product sales

*  Other includes Bergamo, MN Pharma, IMLYGIC^®, Corlanor^®, and Parsabiv™

Repatha^®

BLINCYTO^®

Prolia^®

KYPROLIS^®

Nplate^®

Sensipar^® / Mimpara^®

Vectibix^®

XGEVA^®

Aranesp^®

Neulasta^®

Enbrel^®

EPOGEN^®

NEUPOGEN^®

Other**

Total product sales

Change in excess of 100%

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

Total Operating Expenses increased 2 percent in the fourth quarter and decreased 2 percent for the full year, with all expense categories reflecting savings from our transformation and process improvement efforts. Cost of Sales margin was unfavorable by 0.2 percentage points in the fourth quarter driven primarily by expenses related to Hurricane Maria in Puerto Rico, unfavorable product mix and other inventory costs, offset partially by lower amortization of intangible assets and royalties. For the full year, Cost of Sales margin improved 0.3 percentage points driven primarily by lower amortization of intangible assets, lower royalties and favorable manufacturing costs, offset partially by expenses related to Hurricane Maria, unfavorable product mix and other inventory costs. Research & Development (R&D) expenses decreased 3 percent for the fourth quarter and 7 percent for the full year driven primarily by lower spending required to support certain later-stage clinical programs and lower external business development expenses. Selling, General & Administrative (SG&A) expenses increased 8 percent in the fourth quarter due to investments in product launches and marketed product support, offset partially by the expiration of ENBREL residual royalty payments. For the full year, SG&A expenses decreased 4 percent due to the expiration of ENBREL residual royalty payments, offset partially by investments in product launches and marketed product support. Other expenses increased for the full year due primarily to net charges related to the Company’s decision to discontinue internal development of AMG 899 in Q3 2017.

Operating Margin decreased by 3.6 percentage points in the fourth quarter to 40.3 percent, and improved by 1.1 percentage points for the full year to 45.8 percent.

Tax Rate increased in the fourth quarter and full year due to the impacts of U.S. corporate tax reform.

Total Operating Expenses increased 5 percent in the fourth quarter and decreased 3 percent for the full year, with all expense categories reflecting savings from our transformation and process improvement efforts. Cost of Sales margin was unfavorable by 1.4 percentage points in the fourth quarter driven primarily by expenses related to Hurricane Maria in Puerto Rico, unfavorable product mix and other inventory costs, offset partially by lower royalties. For the full year, Cost of Sales margin was unfavorable by 0.2 percentage points driven primarily by expenses related to Hurricane Maria, unfavorable product mix and other inventory costs, offset partially by lower royalties and favorable manufacturing costs. R&D expenses decreased 3 percent for the fourth quarter and 7 percent for the full year driven primarily by lower spending required to support certain later-stage clinical programs and lower external business development expenses. SG&A expenses increased 8 percent in the fourth quarter due to investments in product launches and marketed product support, offset partially by the expiration of ENBREL residual royalty payments. For the full year, SG&A expenses decreased 2 percent due to the expiration of ENBREL residual royalty payments, offset partially by investments in product launches and marketed product support.

Operating Margin decreased by 4.6 percentage points in the fourth quarter to 45.9 percent, and improved by 1.2 percentage points for the full year to 53.5 percent.

Tax Rate for the fourth quarter decreased 2.1 percentage points due primarily to favorable changes in the geographic mix of earnings. The full year tax rate decreased 0.8 percentage points driven by changes in the geographic mix of earnings, offset partially by lower tax benefits from share-based compensation payments.

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%

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 $2.9 billion of free cash flow in the fourth quarter of 2017, flat versus the fourth quarter of 2016. The Company generated $10.5 billion of free cash flow for the full year versus $9.6 billion in 2016 driven by higher operating income and favorable changes in working capital.

The Company’s first quarter 2018 dividend of $1.32 per share declared on Dec. 12, 2017, will be paid on March 8, 2018, to all stockholders of record as of Feb. 15, 2018. This represents a 15 percent increase from that paid in each of the previous four quarters.

During the fourth quarter, the Company repurchased 4.5 million shares of common stock at a total cost of $0.8 billion. For the full year, the Company repurchased 18.5 million shares of common stock at a total cost of $3.1 billion. In January 2018, the Company’s Board of Directors authorized an additional $10 billion of share repurchases. This authorization is in addition to the existing $4.4 billion in share repurchase authorization as of Dec. 31, 2017.

Operating Cash Flow

Capital Expenditures

Free Cash Flow

Dividends Paid

Share Repurchase

Avg. GAAP Diluted Shares (millions)

Avg. Non-GAAP Diluted Shares (millions)

Cash and Investments

Debt Outstanding

Stockholders’ Equity

Total revenues in the range of $21.8 billion to $22.8 billion.

On a GAAP basis, 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 $12.60 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

Relapsed or refractory

multiple myeloma

EU regulatory review (ENDEAVOR OS data)

Regulatory reviews (ASPIRE OS data)

Acute lymphoblastic

leukemia

EU regulatory review (TOWER OS data)

Regulatory reviews (MRD-positive)

Prevention of SREs in

multiple myeloma

Glucocorticoid-induced

osteoporosis

Postmenopausal

osteoporosis

U.S. regulatory resubmission

EU regulatory review

ABP 980

(biosimilar trastuzumab)

Repatha is the first and only PCSK9 inhibitor approved to prevent heart attacks, strokes and coronary revascularizations in adults with established cardiovascular disease.

In December, the U.S. Food and Drug Administration (FDA) approved the supplemental Biologics License Application (sBLA) to include data from the Phase 3 Repatha cardiovascular outcomes study in the prescribing information (PI).

The FDA also approved Repatha to be used as an adjunct to diet, alone or in combination with other lipid-lowering therapies, such as statins, for the treatment of adults with primary hyperlipidemia to lower LDL-C.

In December, patients began enrolling in a Phase 3 study to evaluate the efficacy and safety of tezepelumab in adults and adolescents with severe uncontrolled asthma.

In January, a Phase 3b study met its primary endpoint and all secondary endpoints in patients with episodic migraine who had experienced two to four previous preventive treatment failures due to lack of efficacy or intolerable side effects.

In January, the FDA approved a supplemental New Drug Application (sNDA) to include OS data from the Phase 3 head-to-head ENDEAVOR study in the PI.

In January, the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) adopted a positive opinion recommending a label variation to include updated OS data from the Phase 3 head-to-head ENDEAVOR study in patients with relapsed or refractory multiple myeloma.

In December, the Company submitted an sNDA to the FDA and a variation to the marketing authorization to the EMA to include the OS data from the ASPIRE study in the product labeling.

In January, the FDA approved an sBLA to expand the currently approved indication to include the prevention of SREs in patients with multiple myeloma.

A Phase 3 study of XGEVA as an experimental adjuvant treatment for women with high-risk, early stage breast cancer receiving standard of care neoadjuvant or adjuvant cancer therapy did not meet its primary endpoint of bone metastasis-free survival.

In January, the European Commission (EC) approved an expanded indication to include the treatment of chronic immune (idiopathic) thrombocytopenic purpura in patients one year of age and older who are refractory to other treatments.

In December, the Company announced that the FDA accepted for priority review an sBLA for the treatment of MRD in patients with acute lymphoblastic leukemia (ALL). The Prescription Drug User Fee Act target action date is March 29, 2018.

In January, the CHMP of the EMA adopted a positive opinion recommending a label variation to include OS data from the Phase 3 TOWER study, supporting the conversion of the conditional marketing authorization to a full marketing authorization in adult patients with Philadelphia chromosome-negative relapsed or refractory B-cell precursor ALL.

In January, the Company announced that the EMA accepted the Marketing Authorization Application (MAA) for EVENITY for the treatment of osteoporosis in postmenopausal women and in men at increased risk of fracture.

In January, the EC granted marketing authorization for MVASI, a biosimilar to Avastin^®, for the treatment of certain types of cancer.

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 (loss) income

(Loss) earnings per share:

Basic

Diluted

Weighted average shares used in calculation of (loss) 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

Short-term borrowings and 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)

Certain net charges pursuant to our restructuring initiative

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)

Certain net charges pursuant to our restructuring initiative

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 (b)

Certain net charges pursuant to our restructuring initiative

Other

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 (b)

Certain net charges pursuant to our restructuring initiative

Other

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 (c)

Acquisition-related adjustments (d)

Expense related to legal proceedings

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 (c)

Acquisition-related adjustments (d)

Expense related to legal proceedings

Non-GAAP operating income as a percentage of product sales

GAAP income before income taxes

Adjustments to operating expenses

Non-GAAP income before income taxes

GAAP provision for income taxes

Adjustments to provision for income taxes:

Income tax effect of the above adjustments to operating expenses (e)

Other income tax adjustments (f)

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 to operating expenses (e)

Other income tax adjustments (f)

Total adjustments to provision for income taxes

Non-GAAP tax as a percentage of income before taxes

GAAP net (loss) income

Adjustments to net (loss) income:

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

Other income tax adjustments (f)

Total adjustments to net income

Non-GAAP net income

Net (loss) income

Shares (Denominator)

Weight-average shares for basic EPS

Effect of dilutive securities

Weighted-average shares for diluted EPS

Diluted (loss) earnings per share (g)

Net income

Shares (Denominator)

Weight-average shares for basic EPS

Effect of dilutive securities

Weighted-average shares for diluted EPS

Diluted EPS

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

The adjustments related primarily to non-cash amortization of intangible assets acquired in business combinations. For the year ended December 31, 2016, the adjustment also included a $73-million charge resulting from the reacquisition of Prolia^®, XGEVA^® and Vectibix^® license agreements in certain markets from Glaxo Group Limited.

For the three months and year ended December 31, 2017, the adjustments related primarily to severance expenses associated with our restructuring initiative. For the three months and year ended December 31, 2016, the adjustments related primarily to asset-related charges associated with our site closures.

For the year ended December 31, 2017, the adjustment included net charges associated with the discontinuance of the internal development of AMG 899.

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 and year ended December 31, 2017, were 31.6% and 31.9%, respectively, compared with 30.2% and 31.8% for the corresponding periods of the prior year.

For the three months and year ended December 31, 2017, the adjustments related primarily to the impact of U.S. Corporate tax reform, including the repatriation tax on accumulated foreign earnings and the remeasurement of certain net deferred and other tax liabilities. For the three months and year ended December 31, 2016, the adjustments related to certain acquisition items and prior period items excluded from GAAP earnings.

During periods of net loss, diluted loss per share is equal to basic loss per share as the anti-dilutive effect of potential common shares is disregarded.

Net cash provided by operating activities

Net cash used in investing activities

Net cash used in financing activities

Increase (decrease) 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

Restructuring charges

Non-GAAP diluted EPS guidance