Amgen Q2 2010 Earnings Call Transcript

Amgen Q2 2010 Earnings Call Transcript
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Amgen (AMGN)

Q2 2010 Earnings Call

July 29, 2010 5:00 pm ET


Arvind Sood - Vice President of Investor Relations

Michael Kelly - Acting Chief Financial Officer

Roger Perlmutter - Executive Vice President of Research & Development

James Daly -

Kevin Sharer - Chairman of the Board, Chief Executive Officer, Chairman of Executive Committee and Member of Equity Award Committee

Robert Bradway - President and Chief Operating Officer


Geoffrey Porges - Bernstein Research

Joel Sendek - Lazard Capital Markets LLC

Jim Birchenough - Barclays Capital

Ian Somaiya - Piper Jaffray Companies

Joshua Schimmer - Leerink Swann LLC

Yaron Werber - Citigroup Inc

Jason Zhang - BMO Capital Markets U.S.

Michael Yee - RBC Capital Markets Corporation

Mark Schoenebaum - ISI Group Inc.

Eun Yang - Jefferies & Company, Inc.

Eric Schmidt - Cowen and Company, LLC

Rachel McMinn - BofA Merrill Lynch

Geoffrey Meacham - JP Morgan Chase & Co



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My name is Christian, and I will be your conference facilitator today for Amgen's Second Quarter 2010 Financial Results Conference Call. [Operator Instructions] I would now like to introduce Arvind Sood, Vice President of Investor Relations. Mr. Sood, you may now begin.

Arvind Sood

Thank you, Christian, good afternoon, everybody. I would like to welcome you to our second quarterly results conference call, another solid quarter behind us as we embark on the second half of this year.

It's also been a year of tremendous change as many of the uncertainties weighing on our business have now been resolved. To discuss these issues in greater detail, as well as to introduce the many changes we have had on our leadership team, I'm joined today by our Chairman and CEO, Kevin Sharer. Following Kevin, our acting CFO, Michael Kelly, will both provide additional details on our second quarter financial performance. Bob Bradway, our newly appointed President and Chief Operating Officer, will then articulate his charter for our company's operations, followed by Jim Daly. Jim is our Senior Vice President of North American Commercial Operations, and he will focus on three main topics: First, our product performance during the quarter; second, an early read on the Prolia launch; and lastly, our perspective on the recent final rule for the bundled-payment system for dialysis patients. Our Head of R&D, Roger Perlmutter will conclude our prepared comments by providing an R&D update.

We will use slides for our presentation today. These slides have been posted on our website, and a link was sent to you separately by email. I would like to remind you that our comments today will be governed by our Safe Harbor statement. What it says in summary is that through the course of our presentation today, we may make certain forward-looking statements and actual results could vary materially.

So with that, I would like to turn the call over to Kevin. Kevin?

Kevin Sharer

Thank you, Arvind. Good afternoon, everyone, and welcome to our call. I'm pleased that we delivered a solid quarter. Our base business continues to perform well both financially and operationally.

Internationally, we're competing effectively, continuing to compete effectively against biosimilars, and we're seeing growth through new markets and products. Research and development, as Roger will report and you've probably concluded is, firing on all cylinders, and we have a lot to be proud of and a lot to look forward to.

And I'd also like to take this moment to thank all of the Amgen staff who are listening and others for all the work you've done this year to make a difference for patients and to deliver value for our shareholders. As Arvind commented, we've had quite a number of significant events this year, and before I make specific comments, I'd like to recognize some of those events, put them in context and give you my perspective on them.

Just six-short months ago, we were uncertain about whether Health Care Reform [U.S. Health Care Reform Legislation] would happen, and if it happened, what might be the effect us both financially and on a public-policy sense. The progress of Prolia and osteoporosis around the world and Denosumab in cancer were not nearly so clear as they are now. A number of ESA franchise questions were outstanding, important questions that we have much more information on now. And finally, we saw Europe as a region go through, to a degree, still go through, some very significant economic uncertainties with some impact in some countries on the biopharmaceutical space.

I think my summary comment is from Amgen's point of view. Each one of these major questions of say, six months ago, have been answered in ways that are either within our expectation, or in some cases, even better. So sitting here now six months later, I feel proud of what we've done and very confident about the future.

Let me talk first about Health Care Reform. We'll talk more specifically later. But I think Health Care Reform has been internalized by us. We can handle it economically, and we are delighted with the public policy rules that have come about with respect to biosimilars. And I'll let Jim later on, talk a bit and Michael about the economics. But we can handle them.

Let's talk a little bit about Denosumab and Prolia.

We were particularly pleased to receive Prolia's approvals in both the U.S. and the EU in the second quarter. A very, very major milestone we worked 15 years to achieve. And while it's still early days from a commercial point of view to launch as are progressing both in Europe and United States as we had planned, Jim will talk about it, a bit of few highlights. The initial feedback from physicians has been positive, and with GSK, we have a strong partner in the rest of the world, so I'm feeling optimistic based on where we are today.

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