News Release

One Amgen Center Drive

Thousand Oaks, CA 91320-1799

Telephone 805-447-1000

www.amgen.com

Total revenues increased 4 percent versus the second quarter of 2017 to $6.1 billion.

Product sales grew 2 percent globally. 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 20 percent to $3.48 driven by higher product sales, a lower tax rate and lower weighted-average shares outstanding.

GAAP operating income increased 5 percent to $2.8 billion and GAAP operating margin increased 1.5 percentage points to 49.9 percent.

Non-GAAP EPS increased 17 percent to $3.83 driven by higher product sales, a lower tax rate and lower weighted-average shares outstanding.

Non-GAAP operating income increased 2 percent to $3.1 billion and non-GAAP operating margin decreased 0.1 percentage points to 55.1 percent.

2018 EPS guidance revised to $11.83-$12.62 on a GAAP basis and $13.30-$14.00 on a non-GAAP basis; total revenues guidance revised to $22.5-$23.2 billion.

The Company generated $1.9 billion of free cash flow in the second quarter versus $2.1 billion in the second 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 2 percent for the second quarter of 2018 versus the second quarter of 2017.

Repatha sales increased 78 percent driven primarily by higher unit demand, offset partially by net selling price.

BLINCYTO^® (blinatumomab) sales increased 40 percent driven by higher unit demand.

KYPROLIS sales increased 25 percent driven by higher unit demand, offset partially by net selling price.

Prolia sales increased 21 percent driven primarily by higher unit demand and, to a lesser extent, net selling price.

XGEVA sales increased 14 percent driven primarily by higher unit demand and, to a lesser extent, net selling price.

Nplate^® (romiplostim) sales increased 9 percent driven by higher unit demand, offset partially by net selling price.

Vectibix^® (panitumumab) sales increased 3 percent driven primarily by higher unit demand, offset partially by net selling price.

Neulasta^® (pegfilgrastim) sales increased 1 percent driven by an increase in net selling price and, to a lesser extent, favorable changes in inventory, offset partially by lower unit demand.

Sensipar/Mimpara^® (cinacalcet) sales decreased 2 percent driven by unfavorable changes in inventory and lower unit demand as a function of Parsabiv uptake, offset partially by higher net selling price.

Parsabiv^™ (etelcalcetide) was launched in the U.S. in the first quarter of 2018.

Enbrel^® (etanercept) sales decreased 11 percent driven primarily by unfavorable changes in inventory and lower unit demand.

Aranesp^® (darbepoetin alfa) sales decreased 12 percent driven primarily by the impact of competition on unit demand and, to a lesser extent, net selling price.

EPOGEN^® (epoetin alfa) sales decreased 14 percent driven primarily by lower net selling price and, to a lesser extent, lower unit demand.

NEUPOGEN^® (filgrastim) sales decreased 26 percent driven primarily by the impact of competition on unit demand and, to a lesser extent, net selling price.

Repatha^®

BLINCYTO^®

KYPROLIS^®

Prolia^®

XGEVA^®

Nplate^®

Vectibix^®

Neulasta^®

Sensipar^® / Mimpara^®

Parsabiv™

Enbrel^®

Aranesp^®

EPOGEN^®

NEUPOGEN^®

Other**

Total product sales

Change in excess of 100%

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

Total Operating Expenses increased 4 percent due to investments in newer and recently launched products, and all expense categories also reflect savings from our transformation and process improvement efforts. Cost of Sales margin decreased by 0.4 points due to favorable royalty cost and lower acquisition-related intangible amortization, partially offset by higher manufacturing cost and unfavorable product mix. Research & Development (R&D) expenses were flat. Selling, General & Administrative (SG&A) expenses increased 12 percent due to investments in product launches and marketed product support.

Operating Margin improved by 1.5 percentage points to 49.9 percent.

Tax Rate decreased by 2.1 percentage points due to the impacts of U.S. corporate tax reform, offset partially by a prior year benefit associated with the effective settlement of certain state and federal tax matters.

Total Operating Expenses increased 7 percent due to investments in newer and recently launched products, and all expense categories also reflect savings from our transformation and process improvement efforts. Cost of Sales margin increased by 0.4 points driven by higher manufacturing cost and unfavorable product mix, partially offset by lower royalty expense. R&D expenses were flat. SG&A expenses increased 14 percent due to investments in product launches and marketed product support.

Operating Margin decreased by 0.1 percentage points to 55.1 percent.

Tax Rate decreased by 3.2 percentage points due to the impacts of U.S. corporate tax reform, offset partially by a prior year benefit associated with the effective settlement of certain state and federal tax matters.

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 $1.9 billion of free cash flow in the second quarter of 2018 versus $2.1 billion in the second quarter of 2017 driven by higher cash taxes resulting from the first installment of the repatriation tax paid in the second quarter of 2018, partially offset by a lower ongoing income tax liability as well as higher net income.

The Company’s second quarter 2018 dividend of $1.32 per share was paid on June 8, 2018, a 15 percent increase versus the second quarter of 2017.

During the second quarter, the Company repurchased 18.2 million shares of common stock at a total cost of $3.2 billion. At the end of the second quarter, the Company had $5.4 billion remaining under its stock repurchase authorization.

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 $22.5 billion to $23.2 billion.

Previously, the Company expected total revenues in the range of $21.9 billion to $22.8 billion.

On a GAAP basis, EPS in the range of $11.83 to $12.62 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 $11.30 to $12.28. Tax rate guidance is unchanged.

On a non-GAAP basis, EPS in the range of $13.30 to $14.00 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 $12.80 to $13.70. Tax rate guidance is unchanged.

Capital expenditures to be approximately $750 million.

In May, the U.S. Food and Drug Administration (FDA) approved Aimovig for the preventive treatment of migraine in adults.

In June, the Company submitted a supplemental Biologics License Application (BLA) to the FDA for the 140 mg Sureclick^® autoinjector device and 140 mg prefilled syringe.

In April, the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) adopted a positive opinion recommending a label variation for KYPROLIS to include the overall survival (OS) data from the Phase 3 ASPIRE trial.

In June, the FDA approved the supplemental New Drug Application to add the OS data from the Phase 3 ASPIRE trial to the U.S. Prescribing Information.

In June, the European Commission (EC) granted a full marketing authorization for BLINCYTO based on the OS data from the Phase 3 TOWER study in adult patients with Philadelphia chromosome-negative relapsed or refractory B-cell precursor acute lymphoblastic leukemia.

In May, the EC approved a new indication for adults with established atherosclerotic cardiovascular disease (myocardial infarction, stroke or peripheral arterial disease) to reduce cardiovascular risk by lowering lipoprotein cholesterol (LDL-C) levels.

In May and June, the FDA and EC, respectively, approved a new indication for the treatment of glucocorticoid-induced osteoporosis in adults.

In July, Amgen and UCB announced the resubmission of the BLA to the FDA for the treatment of osteoporosis in postmenopausal women at high risk for fracture.

In May, the EC granted marketing authorization for KANJINTI, a biosimilar to Herceptin^® (trastuzumab), for the treatment of HER2-positive metastatic breast cancer, HER2-positive early breast cancer and HER2-positive metastatic adenocarcinoma of the stomach or gastroesophageal junction.

In May, the Company received a complete response letter from the FDA on its BLA.

In June, the Company announced results from the primary analysis of a Phase 3 study evaluating the efficacy and safety of biosimilar candidate ABP 710 compared with REMICADE^® (infliximab) in patients with moderate-to-severe rheumatoid arthritis. The results confirm noninferiority compared to infliximab but could not rule out superiority based on the primary efficacy endpoint.

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

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 (a)

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 (b)

Certain other expenses

Acquisition-related adjustments (c)

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)

Certain other expenses

Acquisition-related adjustments (c)

Non-GAAP operating income as a percentage of product sales

GAAP interest and other income, net

Adjustments to other income (d)

Non-GAAP interest and other income, net

GAAP income before income taxes

Adjustments to operating expenses

Adjustments to other income (d)

Non-GAAP income before income taxes

GAAP provision for income taxes

Adjustments to provision for income taxes:

Income tax effect of the above adjustments (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 (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 income

Adjustments to net 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 income

Weighted-average shares for diluted EPS

Diluted EPS

Net income

Weighted-average shares for diluted EPS

Diluted EPS

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

For the six months ended June 30, 2017, the adjustment related primarily to severance expenses associated with our restructuring initiative.

For the three and six months ended June 30, 2018, the adjustment related primarily to the change in fair values of contingent consideration liabilities.

For the six months ended June 30, 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 and six months ended June 30, 2018 were 24.7% and 25.7%, compared with 31.0% and 30.2% for the corresponding periods 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 (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 (a)

Restructuring charges

Certain other expenses

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