amgen credit suisse healthcare presentation

24th Annual Credit Suisse Healthcare Conference

David Meline Executive Vice President and Chief Financial Officer

November 10, 2015

2 Provided November 10, 2015, as part of an oral presentation and is qualified by such, contains forward-looking statements, actual results may vary materially; Amgen disclaims any duty to update.

This presentation contains forward-looking statements that are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements about estimates of revenues, operating margins, capital expenditures, cash, other financial metrics, expected legal, arbitration, political, regulatory or clinical results or practices, customer and prescriber patterns or practices, reimbursement activities and outcomes and other such estimates and results. Forward-looking statements involve significant risks and uncertainties, including those discussed below and more fully described in the Securities and Exchange Commission (SEC) reports filed by Amgen, including Amgen’s most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and Form 8-K. Please refer to Amgen’s most recent Forms 10-K, 10-Q and 8-K for additional information on the uncertainties and risk factors related to our business. Unless otherwise noted, Amgen is providing this information as of November 10, 2015 and expressly disclaims any duty to update information contained in this presentation.

No forward-looking statement can be guaranteed and actual results may differ materially from those we project. The Company’s results may be affected by our ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments (domestic or foreign) involving current and future products, sales growth of recently launched products, competition from other products (domestic or foreign) and difficulties or delays in manufacturing our products. In addition, sales of our products are affected by reimbursement policies imposed by third-party payers, including governments, private insurance plans and managed care providers and may be affected by regulatory, clinical and guideline developments and domestic and international trends toward managed care and healthcare cost containment as well as U.S. legislation affecting pharmaceutical pricing and reimbursement. Government and others’ regulations and reimbursement policies may affect the development, usage and pricing of our products. Furthermore, our research, testing, pricing, marketing and other operations are subject to extensive regulation by domestic and foreign government regulatory authorities. We or others could identify safety, side effects or manufacturing problems with our products after they are on the market. Our business may be impacted by government investigations, litigation and products liability claims. If we fail to meet the compliance obligations in the corporate integrity agreement between us and the U.S. government, we could become subject to significant sanctions. Further, while we routinely obtain patents for our products and technology, the protection offered by our patents and patent applications may be challenged, invalidated or circumvented by our competitors. We depend on third parties for a significant portion of our manufacturing capacity for the supply of certain of our current and future products and limits on supply may constrain sales of certain of our current products and product candidate development. In addition, we compete with other companies with respect to some of our marketed products as well as for the discovery and development of new products. Discovery or identification of new product candidates cannot be guaranteed and movement from concept to product is uncertain; consequently, there can be no guarantee that any particular product candidate will be successful and become a commercial product. Further, some raw materials, medical devices and component parts for our products are supplied by sole third-party suppliers. Our efforts to integrate the operations of companies we have acquired may not be successful. Cost saving initiatives may result in us incurring impairment or other related charges on our assets. We may experience difficulties, delays or unexpected costs and not achieve anticipated benefits and savings from our ongoing restructuring plan. Our business performance could affect or limit the ability of our Board of Directors to declare a dividend or our ability to pay a dividend or repurchase our common stock.

This presentation includes GAAP and non-GAAP financial measures. In accordance with the requirements of SEC Regulation G, reconciliations between these two measures, if these slides are in hard copy, accompany the hard copy presentation or, if these slides are delivered electronically, are available on the Company's website at www.amgen.com within the Investors section.

Safe Harbor Statement


Amgen Is Positioned Well for Future Sustainable Growth

• We will meet or exceed the commitments we made to shareholders in October 2014

• We are driving meaningful growth of key products, including Enbrel®, Prolia®, XGEVA®, Vectibix®, Sensipar® and Nplate®

• We expect our legacy products to continue to deliver strong cash flows for many years to come

• With six launches, a significant new product cycle is underway

• We are active in business development

• Our pipeline has made significant progress in the last year Guidance as of October 28, 2015, and is not being updated at this time.


We Expect to Meet or Exceed the Commitments We Made to Shareholders in October 2014 Key 2018 Commitments Status Double-digit adjusted EPS* growth, on average, through 2014–2018 On track; 17% growth 2014–2015 YTD

Adjusted operating margin* of 52%–54% vs. 38% in 2013 On track; 49% margin YTD

$1.5B gross cost savings, $800M net of reinvestment On track; $700M gross savings by year-end 2015 and $1.1B by year-end 2016

Headcount reduction of 3,500–4,000 On track

Facilities footprint reduction of 23% On track; 16% reduction in 2015

Return of ~ 60% of adjusted net income* to shareholders, on average

On track; dividend increased 30% for 2015 and 27% increase planned for 2016; expect ~ $4-5B cumulative share repurchases through year-end 2016

*Adjusted, non-GAAP financial measure—if this slide is in hard copy, see reconciliations accompanying the presentation, or if this slide is delivered electronically, or amounts pertain to previously issued financial guidance, see reconciliations available at: www.amgen.com within the Investors section Guidance as of October 28, 2015, and is not being updated at this time.


Our Growth Products Are Performing Well; Legacy Products Generate Strong Cash Flows

YTD Sep. 30 ’15 YoY Enbrel® $3.9 17% XGEVA® 1.0 17% Sensipar®/Mimpara® 1.0 23% Prolia® 0.9 30% Vectibix® 0.4 11% Nplate® 0.4 11% Kyprolis® 0.4 52% Neulasta® 3.6 4% EPOGEN® 1.5 1% Aranesp® 1.5 0% NEUPOGEN® 0.8 (11%)

Other* 0.2 Total Product Sales $15.6 10%

*Other includes MN Pharma, BLINCYTO®, Bergamo, Corlanor® and Repatha™

$ Billions, Worldwide Net Sales


Six Major Regulatory Approvals Over the Last Year

We Expect Kyprolis® and Repatha™ to be Blockbuster Sales Opportunities


Neulasta® Onpro™ Kit Launch Is Progressing Very Well

• ~ 19% share of Neulasta® business in Q3 2015 • Important differentiator versus potential biosimilar competition Note: Refer to the Instructions for Use for complete administration instructions


• The KRd regimen, approved in the U.S. in July, is increasingly recognized by many as the new standard of care for relapsed multiple myeloma*

• KRd new patient share has doubled in the relapsed setting since ASPIRE approval

• Expect continued sales growth as new relapsed patients start and stay on therapy for longer duration

• ENDEAVOR U.S. PDUFA January 22, 2016

• Expect approvals in Europe, Canada and some South American and Asian countries in Q4 ’15

New Kyprolis® Indication in Relapsed Multiple Myeloma Is Driving Future Growth

*Following 1–3 prior lines of therapy KRd = Kyprolis® + Revlimid® + dexamethasone; PDUFA = Prescription Drug User Fee Act


We Are Maximizing the Repatha™ Opportunity Globally

• First PCSK9 to be approved (EU), now also approved in U.S. and Canada

• Key program design attributes – Simple, single dose delivering

intensive, predictable LDL-C reduction – Every-two-weeks or once-monthly

dosing options and HoFH indication – 30-day room temperature stability

in U.S.

• Single-injection monthly dosing option submitted in U.S. and EU

• Ongoing payer negotiations globally • Japan approval expected H1 2016;

partnered with Astellas in Japan • Event-driven outcomes study—

events expected to be accrued by mid-year 2016

• Intravascular ultrasound (IVUS) study H2 2016

Current Progress Next Steps

LDL-C = low-density lipoprotein cholesterol; HoFH = homozygous familial hypercholesterolemia


We Are Successfully Executing Our Repatha™ Launch U.S. Launch Update: • Sales force fully trained and promoting Repatha™

within five days of approval • > 80% of top targets have been reached in the first

four weeks • Significant ongoing speaker program activity • More than 37,000 visits to Repathahcp.com for

healthcare providers, with an average time on site of > 5 minutes

• Volume of insurance verifications through RepathaReady™ running significantly ahead of projections

• National and regional plan negotiations ongoing; Express Scripts co-preferred formulary position


We Are Defending Our Mature Brands • Leveraging both EPOGEN® and Aranesp® in dialysis clinics

• Good response to Neulasta® Onpro™ kit (includes On-body Injector) with 19% share of Neulasta® units in Q3

• NEUPOGEN® maintained ~ 77% share of the short-acting G-CSF segment in the U.S. in Q3

• We will compete account by account, based on our decades-long history of reliably supplying safe, effective medicines

We will leverage our U.S. experience vs. branded competition and EU experience vs. biosimilars

G-CSF = granulocyte colony-stimulating factor


We Expect Biosimilars to Be More Like Branded Biologics Than Generic Small Molecules

• Significant and specialized development, manufacturing and commercialization expertise required for success

• Investment of ~ $200M per molecule required versus <$5M for a small molecule generic

• Regulatory and customer requirements more stringent than small molecule generics

We expect patients, providers and payers to place a high value on the reputation, reliability and safety of biosimilars


Amgen Biosimilars Have the Potential to Deliver $3B+ in Annual Revenue

Status Originator Worldwide 2014 Sales*

ABP 501 Phase 3 complete (RA and PsO) HUMIRA® ~ $13B

ABP 980 Phase 3 breast cancer Herceptin® ~ $7B

ABP 215 Phase 3 complete (NSCLC) Avastin® ~ $7B

ABP 710 Phase 1 REMICADE® ~ $9B

ABP 798 Clinical ready RITUXAN® ~ $8B

ABP 494 Process development ERBITUX® ~ $2B

Molecules #7–#9 Process development ~ $7B

Total ~ $52B RA = rheumatoid arthritis; PsO = psoriasis; NSCLC = non-small-cell lung cancer *Per company-reported numbers and EvaluatePharma (February 24, 2015), numbers may not add due to rounding. Guidance as of September 18, 2015, and is not being updated at this time.


Clinical Program Indication Milestone Etelcalcetide Secondary hyperparathyroidism Global regulatory reviews ongoing

Omecamtiv mecarbil* Heart failure Phase 2 complete

Romosozumab† Postmenopausal osteoporosis Phase 3 registrational data expected H1 2016

AMG 334‡ Migraine prophylaxis Phase 3 episodic migraine study enrolling

Phase 2b chronic migraine data expected 2016

ABP 215 biosimilar bevacizumab (Avastin®) Advanced NSCLC Phase 3 study complete

ABP 501 biosimilar adalimumab (HUMIRA®) Inflammatory diseases Global regulatory submissions expected Q4 2015

ABP 780 biosimilar trastuzumab (Herceptin®) Breast cancer Phase 3 data expected H2 2016

*Developed in collaboration with Cytokinetics; †Developed in world-wide collaboration with UCB and Astellas in Japan; ‡Developed in collaboration with Novartis

Our Next Set of Pipeline Opportunities Is Advancing


We Will Continue to Be Active in Strategic Business Development

CNP 520—BACE inhibitor with differentiated development

strategy

Expands on existing bispecific antibody platform

and expertise in multiple myeloma (CD-38)

Expands cardiovascular franchise with potentially

best-in-class CETP inhibitor

CAR-T immuno-oncology collaboration Equity investment; second-

generation BTK inhibitor in late-stage development for CLL

CLL = chronic lymphocytic leukemia

Preclinical Phase 1 Phase 3 Phase 2

2015 Transactions


We Have Increased Our 2015 Revenue and EPS Guidance Three Times This Year

Updated Guidance

Previous Guidance

Revenue $21.4B–$21.6B $21.1B–$21.4B

Adjusted EPS* $9.95–$10.10 $9.55–$9.80

Adjusted Tax Rate* 18%–19% 18%–19%

Capital Expenditures ~ $700M ~ $700M *Adjusted, non-GAAP financial measure—if this slide is in hard copy, see reconciliations accompanying the presentation, or if this slide is delivered electronically, or amounts pertain to previously issued financial guidance, see reconciliations available at: www.amgen.com within the Investors section Guidance as of October 28, 2015, and is not being updated at this time.


Our 2016 Preliminary Revenue and EPS Guidance Shows Continued Progress Toward Long-Term Goals

Preliminary Guidance

Revenue $21.7B–$22.3B

Adjusted EPS* $10.35–$10.75

Adjusted Tax Rate* 20.5%–21.5%

Capital Expenditures ~ $700M

Dividend Growth 27%

Share Repurchases ~ $2B–$3B *Adjusted, non-GAAP financial measure—if this slide is in hard copy, see reconciliations accompanying the presentation, or if this slide is delivered electronically, or amounts pertain to previously issued financial guidance, see reconciliations available at: www.amgen.com within the Investors section Guidance as of October 28, 2015, and is not being updated at this time.


Amgen Is Positioned Well for Future Sustainable Growth • Our focus, expense discipline and priorities are clear

– Successfully execute on new product launches, including Kyprolis® and Repatha™

– Grow key products, including Enbrel®, Prolia®, XGEVA®, Vectibix®, Sensipar® and Nplate®

– Advance our robust pipeline of important medicines – Transform our business to increase agility and deliver

efficiencies and cost savings across the company – Continue to deliver progress against long-term objectives

Reconciliations


Amgen Inc.Reconciliations of GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share($ In millions)(Unaudited)

Nine months ended Year ended Nine months ended Year endedSeptember 30, 2015 December 31, 2014 September 30, 2014 December 31, 2013

GAAP earnings per share (diluted) 6.70$ 6.70$ 5.02$ 6.64$ Adjustments to GAAP earnings per share (a):

Acquisition-related expenses (b) 0.86 1.30 0.98 0.91 Certain charges pursuant to our restructuring and other cost savings initiatives (c) 0.16 0.52 0.37 0.06 Expense related to various legal proceedings 0.08 - - 0.02 Expense resulting from clarified guidance on branded prescription drug fee (d) - 0.17 0.19 -Write-off of acquired in‐process research and development program - 0.04 - -Non-cash interest expense associated with our convertible notes - - - 0.01

Other tax adjustments (e) (0.02) (0.03) (0.02) (0.04) Adjusted earnings per share (diluted) 7.78$ 8.70$ 6.54$ 7.60$

(a)

(b)

(c) To exclude expenses related primarily to severance, as well as accelerated depreciation and other charges related to the closure of our facilities.

(d) To exclude the expense related to the Internal Revenue Service issuing final regulations that required us to recognize an additional year of the non-tax deductible branded prescription drug fee.

(e) The adjustments related to certain prior period items excluded from adjusted earnings. The 2015 adjustments also included the impact from a change in interpretation of tax law. The 2013adjsutments also included the impact of resolving certain non-routine transfer-pricing and acquisition-related issues with tax authorities

The above adjustments are presented net of their related per-share tax impact of $0.53 and $0.69 for the nine months ended September 30, 2015 and 2014, respectively, and $0.93 and $0.49 for the years ended December 31, 2014 and 2013, respectively.

To exclude acquisition-related expenses related primarily to non-cash amortization of intangible assets, including developed product technology rights, acquired in business combinations. The 2014 periods also included a $99-million charge related to the termination of a supply contract with F. Hoffmann-La Roche Ltd. as a result of acquiring the licenses to filgrastim and pegfilgrastim effective January 1, 2014.


Amgen Inc.Reconciliations of GAAP Operating Income and Margin to Adjusted Operating Income and Margin($ In millions)(Unaudited)

Nine months ended Year endedSeptember 30, 2015 December 31, 2013

GAAP operating income 6,437$ 5,867$ Adjustments to operating income:

Acquisition-related expenses (a) 1,010 986 Certain charges pursuant to our restructuring and other cost savings initiatives (b) 166 71 Expense related to various legal proceedings 73 14 Stock option expense - 34

Total adjustments to operating income 1,249 1,105 Adjusted operating income 7,686$ 6,972$

Product sales 15,615$ 18,192$

GAAP operating margin 41.2% 32.3%Impact of total adjustments to operating income 8.0% 6.0%

Adjusted operating margin 49.2% 38.3%

(a)business combinations.

(b) The adjustments related primarily to severance, as well as accelerated depreciation and other charges related to the closure of our facilities.

The adjustments related primarily to non-cash amortization of intangible assets, including developed product technology rights, acquired in


Reconciliation of GAAP EPS Guidance to Adjusted EPS Guidance for the Years Ending December 31, 2015 and 2016(Unaudited)

GAAP diluted EPS guidance.......................................................................................... .. 8.47$ - 8.66$ 8.89$ - 9.34$

Known adjustments to arrive at Adjusted earnings*:Acquisition-related expenses.................................................................................. (a)Restructuring charges............................................................................................ 0.19 - 0.23 0.09 - 0.14Legal proceeding expense.....................................................................................Tax adjustments..................................................................................................... (b)

Adjusted diluted EPS guidance .................................................................................... .. 9.95$ - 10.10$ 10.35$ - 10.75$

* The known adjustments are presented net of their related tax impact which amount to approximately $0.66 to $0.69 per share in 2015 and 2016, each in the aggregate.

(a) The adjustments relate primarily to non-cash amortization of intangible assets acquired in prior year business combinations.

(b) The adjustments relate to a change in interpretation of tax law and certain prior period items excluded from adjusted earnings.

Reconciliation of GAAP Tax Rate Guidance to Adjusted Tax Rate Guidance for the Years Ending December 31, 2015 and 2016(Unaudited)

GAAP tax rate guidance................................................................................................. 14.0% - 16.0% 18.5% - 19.5%

Tax rate effect of known adjustments discussed above............................................. 3.0% - 4.0% 2.0%

Adjusted tax rate guidance ........................................................................................... 18.0% - 19.0% 20.5% - 21.5%

2015 2016

1.18 1.32

0.09 -(0.02) -

2015 2016


Amgen Inc.Reconciliation of Future GAAP to Adjusted Financial Measures

Management has presented herein certain forward-looking statements about the Company’s future financial performance that include non-GAAP (or “as-adjusted”) operating margin and earnings per share for various years through December 31, 2018. These non–GAAP financial measures are derived by excluding certain amounts, expenses or income, from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts that are excluded from these non-GAAP financial measures are a matter of management judgment and depend upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period. We are unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measure because management cannot reliably predict all of the necessary components of such GAAP measures. Historically, management has excluded the following items from these non-GAAP financial measures, and such items may also be excluded in future periods and could be significant:

• Expenses related to the acquisition of businesses, including amortization and / or impairment of acquired intangible assets, including in-process research and development, adjustments to contingent consideration, integration costs, severance and retention costs and transaction costs; • Charges associated with restructuring or cost saving initiatives, including but not limited to asset impairments, accelerated depreciation, severance costs and lease abandonment charges; • Legal settlements or awards;• The tax effect of the above items; and • Non-routine settlements with tax authorities.

24th Annual Credit Suisse Healthcare Conference

David Meline Executive Vice President and Chief Financial Officer

November 10, 2015

amgen credit suisse healthcare presentation

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