Amgen Affirms its Confidence in its Strategy for Growth

Amgen has outlined the company's strategy, growth objectives and capital allocation plans, and provided financial guidance for 2015.

Robert A. Bradway, Chairman and CEO at Amgen, affirmed the company's strategy will continue to focus on discovery and development of innovative medicines to address serious illnesses, development of branded biosimilars, next-generation biomanufacturing of high quality biologics, developing improved biologic drug delivery systems, global expansion, and capital allocation and return to shareholders and long-term value opportunities. Bradway highlighted that while delivering on Amgen's strategy for growth, the company is transforming to enhance its capabilities to deliver long-term industry-leading innovation and industry-leading financial returns.

"With four potential product launches in 2015 and a strong pipeline of innovative and biosimilar molecules, we are well positioned to deliver breakthrough medicines for patients and drive long-term growth," said Bradway.

Amgen initiated a company-wide re-engineering process in 2013 to ensure clear reallocation of resources to invest in its continuing innovation and the launch of the company's new pipeline medicines. The company's transformation includes a significant restructuring, with an approximate 23% decrease in facilities footprint and an approximate 20% reduction in staff by the end of 2015. As a result, the company expects to generate up to $1.5 billion in annual savings and a 15 point adjusted operating margin increase by 2018.

Bradway affirmed Amgen is on track to produce commercial products from its new Singapore next-generation biomanufacturing facility beginning in 2017. Next-generation biomanufacturing will enable dramatically increased bulk production capabilities versus conventional alternatives at one-quarter of the capital costs, one-third of the operating expense, and twice the speed. The company estimates these new capabilities will result in an estimated cost reduction of 60% or more per gram of protein.

"This is an exciting new era for Amgen. We are on the cusp of an important new product cycle with our rich pipeline of innovative and biosimilar medicines that address important societal needs," said Bradway. "Our significantly expanded global presence and new biomanufacturing technologies give us confidence that Amgen is uniquely positioned to capitalise on the latest wave of opportunity for innovative biologic therapies."