Amgen CEO Discusses Q4 2010 Earnings Call Transcript

Amgen (AMGN)

Q4 2010 Earnings Call

January 24, 2011 5:00 pm ET


James Daly - Senior Vice President of North America Commercial Operations

Arvind Sood - Vice President of Investor Relations

Jonathan Peacock - Chief Financial Officer and Executive Vice President

Roger Perlmutter - Executive Vice President of Research & Development

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


Sapna Srivastava - Goldman Sachs Group Inc.

Geoffrey Porges - Bernstein Research

Robyn Karnauskas - Deutsche Bank AG

Joel Sendek - Lazard Capital Markets LLC

Jim Birchenough - Barclays Capital

Ravi Mehrotra - Crédit Suisse AG

Ian Somaiya - Piper Jaffray Companies

Joshua Schimmer - Leerink Swann LLC

Yaron Werber - Citigroup Inc

Jason Zhang - BMO Capital Markets U.S.

Maged Shenouda - Stifel, Nicolaus & Co., Inc.

Michael Yee - RBC Capital Markets, LLC

Christopher Raymond - Robert W. Baird & Co. Incorporated

Eric Schmidt - Cowen and Company, LLC

Mark Schoenebaum - ISI Group Inc.

Eun Yang - Jefferies & Company, Inc.

Rachel McMinn - BofA Merrill Lynch

Matthew Roden - UBS Investment Bank

Geoffrey Meacham - JP Morgan Chase & Co



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

Arvind Sood

Okay, thank you, Christian. Good afternoon, everybody. I'd like to welcome you to our fourth quarter and full year 2010 results conference call. Unlike most reporting quarters, we are the first to go this year ahead of other Bio Pharma companies. The objective of this call is to review our solid performance last year despite the impact of U.S. Healthcare Reform. We'll also provide a perspective on a growth outlook for 2011. 2010 was truly a notable year as we received approval for and launched two very important therapies, Prolia and XGEVA.

You'll here more in these launches during the call together with updates on progress we have made towards advancing our pipeline. As we did for the third quarter call, we'll follow a streamlined format for our prepared remarks. I think this formant was well appreciated, as I received many favorable comments after our last call. In other words, we'll focus only on those comments that provide added clarity on issues outlined in our press release. So with that, I would like to introduce our presenters. I'm joined today by our Chairman and CEO, Kevin Sharer, who will lead the discussion by providing the strategic overview of our business, as well as comments on the acquisition of BioVex that we announced today.

Following Kevin, you'll know from our CFO, Jon Peacock, who will highlight key aspects of our financial performance during the quarter, as well as provide guidance for 2011. Our President and Chief Operating Officer, Bob Bradway will then give you a high level of summary of our global commercial sales, as well as a report on full-year commercialization. Our Head of R&D, Roger Perlmutter will conclude our prepared comments by providing a regulatory and pipeline update.

As of the case of such calls, our comments today will be governed by our Safe Harbor statement. What it states 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 Sharer

Thanks, Arvind. Good afternoon, everyone. It's Good to be with you. Before I share my thoughts about our 2010 results and 2011 prospects, I'd like to just take a minute to reflect. Each year, any large global company, in virtually any industry, faces a number of uncertainties and last year was a specially froth for us as we think about just the year ago. I'm especially proud and pleased to say that Amgen met our challenges successfully and set the stage for promising future. Here are just few of the highlights: Prolia and XGEVA were approved. After 15 years of effort over $1.5 billion of investment and the tireless work of uncounted members of our team, we're proud of these result. I think it's biotechnology at its best, and we look forward to helping patients enjoy the benefit of this set of innovations. The bone mass prevention study we announced the results of toward the end of last year, or so called 147 study, added to the benefit of XGEVA. Roger will talk more about our regulatory prospects and plans there, but clearly, this is a landmark result, we're proud of it.

Three, we delivered financially even on the face of tremendous health care reform and reimbursement headwinds around the world. We effectively and thoughtfully represented patient interest at a variety of public government-sponsored reviews of aspects of our ESA franchise, that continues this year, we'll talk about in a minute. We advanced our pipeline in many ways. We made significant management changes on naming a new Chief Operating Officer and a new Chief Financial Officer. We maintained the highest compliance standards and performance in an increasingly challenging environment.

And finally, we successfully again represented and defended our intellectual property. 2010 was a superb operational year for Amgen, and I want to thank Amgen's staff worldwide for their efforts. It was truly exceptional. Our focus on 2011 is easy to describe, but as always, challenging to execute. First, we can't take our eyes off and we won't take our eyes off the core business in all of its aspects. The recent MEDCAC discussions made me proud about our work for patients. We need to and will advance Prolia and XGEVA. Prolia is in a promising therapy for osteoporosis that is growing. However, predicting the ramp rate of any new technology in any business is challenging. However, our efforts and enthusiasm both are very high.

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