Amgen's Third Quarter 2009 Adjusted Earnings Per Share Increased 21 Percent to $1.49

Amgen's Third Quarter 2009 Adjusted Earnings Per Share Increased 21 Percent to
$1.49
Third Quarter 2009 Revenue Decreased 2 Percent to $3.8 Billion

THOUSAND OAKS, Calif., Oct. 21 /PRNewswire-FirstCall/ -- Amgen (Nasdaq: AMGN)
reported adjusted earnings per share (EPS) of $1.49 for the third quarter of
2009, an increase of 21 percent compared to $1.23 for the third quarter of
2008. Adjusted net income increased 16 percent to $1,518 million in the third
quarter of 2009 compared to $1,308 million in the third quarter of 2008.

Total revenue decreased 2 percent during the third quarter of 2009 to $3,812
million versus $3,875 million in the third quarter of 2008.

"Our third quarter results reflect the continued stability of our core
businesses in the face of increased competition," said Kevin Sharer, chairman
& chief executive officer. "We are pleased by the results of clinical studies
for denosumab and Vectibix that we recently presented at a scientific meeting,
and look forward to making these innovative medicines available to patients in
their respective indications."

Adjusted EPS and adjusted net income for the third quarter of 2009 and 2008
exclude, for the applicable periods, stock option expense, certain expenses
related to acquisitions, a strategic decision to change manufacturing
processes and the resolution of certain non-routine transfer pricing issues
with the Internal Revenue Service (IRS), and certain other items. In
addition, adjusted EPS and adjusted net income for the third quarter of 2009
and 2008 exclude the incremental non-cash interest expense resulting from a
change in accounting for convertible debt as discussed below. These expenses
and other items are itemized on the attached reconciliation tables.

On a reported basis and calculated in accordance with United States (U.S.)
Generally Accepted Accounting Principles (GAAP), Amgen's GAAP EPS were $1.36
in the third quarter of 2009, a 30 percent increase compared to $1.05 in the
same quarter last year. GAAP net income increased 24 percent to $1,386 million
in the third quarter of 2009 from $1,121 million in the third quarter of 2008.
GAAP net income for the third quarter of 2008 was negatively impacted by an
$84 million inventory write-off resulting from a strategic decision to change
manufacturing processes. Effective Jan. 1, 2009, Amgen adopted a new
accounting standard which changed the method of accounting for the Company's
convertible notes. In addition, as required, the Company also revised its
previously reported financial statements to apply this change in accounting to
prior periods. Under this new accounting method, the Company's GAAP EPS and
net income have been reduced as a result of recognizing incremental non-cash
interest expense. In connection with adopting this new accounting standard,
Amgen recorded $63 million and $59 million of additional non-cash interest
expense in the third quarter of 2009 and 2008, respectively. In addition, the
Company's previously reported GAAP EPS and net income for the third quarter of
2008 have been reduced by $0.04 per share and $37 million to $1.05 per share
and $1,121 million, respectively, as a result of adopting this new accounting
method.

Product Sales Performance

During the third quarter of 2009, total product sales decreased 1 percent to
$3,736 million from $3,784 million in the third quarter of 2008. Sales in the
U.S. totaled $2,918 million in the third quarter of 2009, relatively unchanged
versus $2,929 million in the third quarter of 2008. International sales
decreased 4 percent to $818 million versus $855 million for the third quarter
of 2008. The decline in third quarter 2009 international sales reflects the
unfavorable impact of changes in foreign exchange, which were in aggregate
approximately $76 million. Excluding the impact of foreign exchange, total
product sales increased 1 percent and international product sales increased 5
percent.

Worldwide sales of Aranesp(®) (darbepoetin alfa) decreased 19 percent to $685
million in the third quarter of 2009 versus $845 million during the third
quarter of 2008. In the U.S., Aranesp sales decreased 27 percent to $333
million in the third quarter of 2009 versus $458 million in the third quarter
of 2008. U.S. sales of Aranesp in the third quarter of 2008 were positively
impacted by $54 million due to a change in the accounting estimate related to
product sales return reserves. Excluding the positive impact of this prior
year change in the accounting estimate, U.S. sales of Aranesp decreased 18
percent in the third quarter of 2009 versus the prior year. The decrease was
driven by a decline in demand reflecting the negative impact, primarily in the
supportive cancer care setting, of additional product label changes which
occurred in August 2008, and a decrease in average net sales price. In
addition, the decrease in sales also reflects, to a lesser degree, a slight
loss of segment share. International Aranesp sales decreased 9 percent to
$352 million in the third quarter of 2009 versus $387 million in the third
quarter of 2008 due to the unfavorable impact of changes in foreign exchange,
which were in aggregate approximately $29 million and, to a lesser extent,
segment decline. Excluding the impact of foreign exchange, international
Aranesp product sales decreased 2 percent. Excluding the impact of the change
in the accounting estimate related to product sales return reserves and
foreign exchange, worldwide product sales decreased 10 percent in the third
quarter of 2009 versus the prior year.

Sales of EPOGEN(®) (Epoetin alfa) increased 5 percent to $663 million in the
third quarter of 2009 versus $634 million in the third quarter of 2008 due to
an increase in demand. The increase in demand is principally due to patient
population growth and, to a lesser extent, increases in average net sales
price and dose/utilization.

Combined worldwide sales of Neulasta(®) (pegfilgrastim) and NEUPOGEN(®)
(Filgrastim) increased 2 percent to $1,210 million in the third quarter of
2009 versus $1,192 million for the third quarter of 2008. Combined sales of
Neulasta and NEUPOGEN in the U.S. were $897 million in the third quarter of
2009 versus $856 million in the third quarter of 2008, an increase of 5
percent due primarily to an increase in demand. The increase in demand was
driven by an increase in units sold and an increase in average net sales
price. Combined international sales decreased 7 percent to $313 million in
the third quarter of 2009 versus $336 million for the third quarter of 2008.
This decline is due to the unfavorable impact of changes in foreign exchange,
which were in aggregate approximately $33 million, partially offset by an
increase in demand driven by segment growth and by the continued conversion
from NEUPOGEN to Neulasta. Excluding the impact of foreign exchange, combined
worldwide product sales of Neulasta and NEUPOGEN increased 4 percent and
international product sales increased 3 percent.

Sales of Enbrel(®) (etanercept) increased 3 percent in the third quarter of
2009 to $924 million versus $893 million in the third quarter of 2008, driven
primarily by an increase in demand, partially offset by a favorable change in
the accounting estimate recorded in the third quarter 2008 related to accruals
for sale incentives. The increase in demand was principally due to a high
single digit increase in the average net sales price partially offset by a
decrease in units sold due to share declines as a result of increased
competitive activity in dermatology. ENBREL continues to maintain a leading
position in both the rheumatology and dermatology segments.

Worldwide sales of Sensipar(®) (cinacalcet) increased 2 percent to $165
million in the third quarter of 2009 versus $161 million during the third
quarter of 2008, primarily as a result of increased international demand.
U.S. sales declined 3 percent driven by a decrease in units sold.

Vectibix(®) (panitumumab) sales for the third quarter of 2009 were $58 million
as compared to $41 million in the third quarter of 2008. Sales growth for the
third quarter was driven by international demand as a result of recent
launches of Vectibix in Europe. U.S. sales declined 12 percent driven by a
decrease in units sold.

Operating Expense Analysis on an Adjusted Basis:

Cost of sales decreased 8 percent to $542 million in the third quarter of 2009
versus $590 million in the third quarter of 2008 primarily driven by lower
royalty expenses, lower excess inventory write-offs, and lower excess capacity
charges partially offset by higher fill and finish costs resulting from lower
utilization at our manufacturing facility in Puerto Rico.

Research & Development (R&D) expenses decreased 12 percent to $613 million in
the third quarter of 2009 versus $700 million in the third quarter of 2008.
This decrease was primarily driven by lower clinical trial costs and lower
staff-related expenses, due in part to the optimization of our clinical supply
network.

Selling, General & Administrative (SG&A) expenses increased 3 percent to $913
million in the third quarter of 2009 versus $890 million in the third quarter
of 2008. This increase was due to increased spending for activities in
anticipation of the approval and launch of Prolia(TM) (denosumab), higher
promotional expenses for marketed products, and higher expenses associated
with the Pfizer (formerly Wyeth) profit share due to higher ENBREL sales
partially offset by lower litigation expenses, lower staff related expenses,
and expense recoveries associated with the GlaxoSmithKline collaboration
agreement for Prolia in postmenopausal osteoporosis (PMO) in Europe,
Australia, New Zealand, and Mexico.

Excluding expenses associated with the Pfizer profit share of $306 million and
$298 million in the third quarter of 2009 and 2008, respectively, adjusted
SG&A expenses in the third quarter of 2009 increased 3 percent versus the same
quarter last year.

The adjusted tax rate in the third quarter of 2009 was 12.9 percent compared
to 22.7 percent in the third quarter of 2008. The decrease in the adjusted
tax rate is primarily due to the favorable impact of settling IRS and
California tax audits for prior years, the impact of which is specific to the
third quarter. In addition, the adjusted tax rate is lower due to an increase
in bulk manufacturing and profits in Puerto Rico and the fact that the Federal
R&D tax credit had not been extended in the third quarter of 2008. The third
quarter adjusted tax rate is not indicative of the anticipated full year rate,
which is expected to be approximately 18 percent.

Average diluted shares for adjusted EPS in the third quarter of 2009 were
1,021 million versus 1,063 million in the third quarter of 2008.

Capital expenditures for the third quarter of 2009 were approximately $130
million versus $159 million in the third quarter of 2008. Worldwide cash and
marketable securities were $14.0 billion and adjusted outstanding debt was
$12.2 billion at the end of the third quarter of 2009. The Company's adjusted
outstanding debt excludes the impact of adopting a new accounting standard on
the carrying values of its convertible debt. The Company's outstanding debt
presented in accordance with GAAP was $11.5 billion at the end of the third
quarter of 2009.

2009 Guidance Update

The Company reaffirmed that revenues for 2009 are trending towards the upper
end of the current guidance range of $14.4 to $14.8 billion. Amgen now
expects 2009 adjusted EPS to be in the range of $4.90 to $5.05, an increase
from the previous range of $4.80 to $4.95, excluding stock option expense,
certain expenses related to acquisitions, the income tax benefit, net as a
result of resolving certain non-routine transfer pricing issues with the IRS,
the incremental non-cash interest expense resulting from the change in
accounting for convertible debt, and certain other items itemized on the
reconciliation table below.

The Company still expects 2009 capital expenditures to be less than $600
million.

Third Quarter Product and Pipeline Update

The Company provided updates on selected products and clinical programs.

Prolia: The Company reviewed the Complete Response Letter that the U.S. Food
and Drug Administration (FDA) has issued for the Biologic License Applications
(BLA) for Prolia in the treatment and prevention of PMO. The Complete Response
Letter on the Prolia PMO applications requested several items, including
further information on the design and background adverse event rates that will
inform the methodology of Amgen's previously submitted post-marketing
surveillance program. This letter does not require additional pre-marketing
clinical trials to complete the review of the PMO treatment indication. The
FDA has requested a new clinical program to support approval of Prolia for the
prevention of PMO indication. The FDA has determined that a Risk Evaluation
and Mitigation Strategy (REMS) is necessary for Prolia and must include a
medication guide, a communication plan, and a timetable for submission of
assessments of the REMS. The FDA acknowledged receipt of Amgen's previously
submitted proposed REMS materials. The FDA has also requested all updated
safety data related to Prolia.
The Company also announced that it has received a Complete Response Letter
issued by the FDA for the BLA for Prolia in the treatment and prevention of
bone loss due to hormone ablation therapy (HALT) in breast and prostate cancer
patients. The Complete Response Letter on the Prolia HALT applications
requested additional information regarding the safety of Prolia in patients
with breast cancer receiving aromatase inhibitor therapy and patients with
prostate cancer receiving androgen deprivation therapy. Specifically, the
FDA has requested results from additional adequate and well-controlled
clinical trials demonstrating that Prolia has no detrimental effects on either
time-to-disease progression or overall survival.
Amgen is reviewing both Complete Response Letters and will work with the FDA
to determine the appropriate next steps regarding these applications.
The Company announced it expects that data from a study of the effect of
denosumab on skeletal-related events in patients with bone metastases from
prostate cancer will be available in the first quarter of 2010. The Company
also announced that it will include results from all three of its
skeletal-related events studies (breast, solid tumors or multiple myeloma, and
prostate cancer) in its regulatory filings for marketing approval in the
oncology setting next year.
Aranesp: The Company discussed the large, randomized, double-blind,
placebo-controlled, Phase 3 study of patients with chronic kidney disease
(CKD) (not requiring dialysis), anemia and type-2 diabetes (the Trial to
Reduce Cardiovascular Endpoints with Aranesp(®) Therapy, or TREAT). Treatment
of anemia with Aranesp to a hemoglobin target of 13 g/dL had no statistically
significant effect on either of two primary endpoints compared with placebo
treatment. The two primary endpoints were a composite of time to all-cause
mortality or cardiovascular morbidity (including heart failure, heart attack,
stroke, or hospitalization for myocardial ischemia) and a composite of time to
all-cause mortality or chronic renal replacement therapy. Among the components
of the TREAT outcomes measures, stroke, which has been noted in the Aranesp
label since 2001, was more likely to occur in the patients who received
Aranesp (101 patients [5.0 percent] vs. 53 patients [2.6 percent]; hazard
ratio, 1.92; 95 percent CI, 1.38 to 2.68; P<0.001). Further, among patients
with a history of cancer at baseline, there were 60 deaths from any cause in
the 188 patients assigned to Aranesp and 37 deaths in the 160 patients
assigned to placebo (P=0.13 by the log-rank test). In this subgroup, 14 of
the 188 patients assigned to Aranesp died from cancer, as compared with 1 of
the 160 patients assigned to placebo (P=0.002 by the log-rank test). Aranesp
treatment was associated with a statistically significant reduction in blood
transfusions. Additional data will be published soon and presented at the
American Society of Nephrology Renal Week on October 30th and the American
Heart Association scientific sessions in November.

Non-GAAP Financial Measures

Management has presented its operating results in accordance with GAAP and on
an "adjusted" (or non-GAAP basis) for the three and nine months ended Sept.
30, 2009 and 2008. In addition, management has presented its outstanding debt
in accordance with GAAP and on an "adjusted" (or non-GAAP basis) on Sept. 30,
2009. The Company believes that the presentation of non-GAAP financial
measures provides useful supplementary information to and facilitates
additional analysis by investors. The Company uses these non-GAAP financial
measures in connection with its own budgeting and financial planning. These
non-GAAP financial measures are in addition to, not a substitute for, or
superior to, measures of financial performance prepared in conformity with
GAAP.

Forward-Looking Statements

This news release contains forward-looking statements that involve significant
risks and uncertainties, including those discussed below and others that can
be found in our Form 10-K for the year ended Dec. 31, 2008, and in our
periodic reports on Form 10-Q and Form 8-K. Amgen is providing this
information as of the date of this news release and does not undertake any
obligation to update any forward-looking statements contained in this document
as a result of new information, future events or otherwise.

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
payors, 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
health care 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 product liability claims. 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.

About Amgen

Amgen discovers, develops, manufactures and delivers innovative human
therapeutics. A biotechnology pioneer since 1980, Amgen was one of the first
companies to realize the new science's promise by bringing safe and effective
medicines from lab, to manufacturing plant, to patient. Amgen therapeutics
have changed the practice of medicine, helping millions of people around the
world in the fight against cancer, kidney disease, rheumatoid arthritis and
other serious illnesses. With a deep and broad pipeline of potential new
medicines, Amgen remains committed to advancing science to dramatically
improve people's lives. To learn more about our pioneering science and our
vital medicines, visit www.amgen.com.

Amgen Inc.
Condensed Consolidated Statements of Income and
Reconciliation of GAAP Earnings to "Adjusted" Earnings
(In millions, except per share data)
(Unaudited)

Three Months Ended Three Months Ended
September 30, 2009 September 30, 2008
------------------ ---------------------
Adjust- Adjust-
GAAP ments "Adjusted" GAAP (a) ments "Adjusted"
---- ------- -------- -------- ------- --------
Revenues:
Product
sales $3,736 $- $3,736 $3,784 $- $3,784
Other
revenues 76 - 76 91 - 91
--- --- --- --- --- ---
Total
revenues 3,812 - 3,812 3,875 - 3,875
----- --- ----- ----- --- -----

Cost of sales
(excludes
amortization
of certain
acquired
intangible
assets
presented
below) 545 (3) (b) 542 677 (3) (b) 590
(84) (h)
Research and
development 647 (13) (b) 613 729 (12) (b) 700
(3) (c) (17) (d)
(18) (d)
Selling,
general
and
adminis-
trative 932 (13) (b) 913 900 (10) (b) 890
(6) (c)
Amortization
of certain
acquired
intangible
assets 74 (74) (e) - 74 (74) (e) -
Other
charges 9 (1) (c) - 12 (8) (c) -
(8) (f) (4) (f)
--- --- --- --- --- ---
Total
operating
expenses 2,207 (139) 2,068 2,392 (212) 2,180
----- ---- ----- ----- ---- -----

Operating
income 1,605 139 1,744 1,483 212 1,695

Interest
expense,
net 139 (63) (g) 76 133 (59) (g) 74
Interest
and
other
income,
net 74 74 62 9 (c) 71
--- --- --- --- ---

Income
before
income
taxes 1,540 202 1,742 1,412 280 1,692

Provision
for
income
taxes 154 80 (j) 224 291 93 (n) 384
(28) (k)
18 (m)
--- --- --- --- --- ---

Net
income $1,386 $132 $1,518 $1,121 $187 $1,308
====== ==== ====== ====== ==== ======

Earnings
per share:
Basic $1.36 $1.49 $1.06 $1.24
Diluted (o) $1.36 $1.49 (b) $1.05 $1.23 (b)

Average
shares
used in
calculation
of earnings
per share:
Basic 1,016 1,016 1,058 1,058
Diluted (o) 1,022 1,021 (b) 1,064 1,063 (b)

(a) - (o) See explanatory notes on the following pages, which includes
a discussion in note (a) of the retrospectively applied change
in method of accounting for our convertible notes.

Amgen Inc.
Condensed Consolidated Statements of Income and
Reconciliation of GAAP Earnings to "Adjusted" Earnings
(In millions, except per share data)
(Unaudited)

Nine months ended Nine months ended
September 30, 2009 September 30, 2008
------------------ ---------------------
Adjust- Adjust-
GAAP ments "Adjusted" GAAP (a) ments "Adjusted"
---- ------- -------- -------- ------- --------

Revenues:
Product
sales $10,608 $- $10,608 $11,013 $- $11,013
Other
revenues 225 - 225 239 - 239
--- --- --- --- --- ---
Total
revenues 10,833 - 10,833 11,252 - 11,252
------ --- ------ ------ --- ------

Cost of sales
(excludes
amortization
of certain
acquired
intangible
assets
presented
below) 1,553 (9) (b) 1,543 1,738 (9) (b) 1,644
(1) (c) (1) (c)
(84) (h)
Research
and
development 1,973 (40) (b) 1,875 2,232 (35) (b) 2,140
(6) (c) (3) (c)
(52) (d) (53) (d)
(1) (i)
Selling,
general
and
adminis-
trative 2,640 (39) (b) 2,578 2,678 (33) (b) 2,646
(23) (c) 1 (c)
Amortization
of certain
acquired
intangible
assets 221 (221) (e) - 221 (221) (e) -
Other
charges 63 (35) (c) - 306 (39) (c) -
(28) (f) (267) (f)
--- --- --- --- --- ---
Total
operating
expenses 6,450 (454) 5,996 7,175 (745) 6,430
----- ---- ----- ----- ---- -----

Operating
income 4,383 454 4,837 4,077 745 4,822

Interest
expense,
net 436 (186) (g) 250 419 (174) (g) 245
Interest
and
other
income,
net 182 182 264 9 (c) 273
--- --- --- --- ---

Income
before
income
taxes 4,129 640 4,769 3,922 928 4,850

Provision
for income
taxes 455 235 (j) 820 795 294 (n) 1,089
87 (k)
25 (l)
18 (m)
--- --- --- --- --- -----

Net
income $3,674 $275 $3,949 $3,127 $634 $3,761
====== ==== ====== ====== ==== ======

Earnings
per
share:
Basic $3.60 $3.87 $2.91 $3.50
Diluted (o) $3.58 $3.86 (b) $2.90 $3.49 (b)

Average
shares
used in
calculation
of earnings
per share:
Basic 1,020 1,020 1,075 1,075
Diluted (o) 1,025 1,024 (b) 1,079 1,078 (b)

(a) - (o) See explanatory notes on the following pages, which includes
a discussion in note (a) of the retrospectively applied
change in method of accounting for our convertible notes.

Amgen Inc.
Notes to Reconciliation of GAAP Earnings to "Adjusted" Earnings
(In millions, except per share data)
(Unaudited)

(a) Effective January 1, 2009, we adopted a new accounting standard
that changed the method of accounting for convertible debt that
may be partially or wholly settled in cash, which includes our
convertible notes. In addition, as required, we revised our
previously reported financial statements to retrospectively
apply this change in accounting to prior periods. Under this new
method of accounting, the debt and equity components of our
convertible notes are bifurcated and accounted for separately.
The equity components of our convertible notes are included in
Stockholders' equity in our Condensed Consolidated Balance Sheets
with a corresponding reduction in the carrying values of our
convertible notes as of the date of issuance or modification, as
applicable. The reduced carrying values of our convertible notes
are being accreted back to their principal amounts through the
recognition of non-cash interest expense. This results in
recognizing interest expense on these borrowings at effective
rates approximating what we would have incurred had we issued
nonconvertible debt with otherwise similar terms.

In connection with applying this new accounting to prior periods,
we recorded $59 million and $174 million of additional non-cash
interest expense in the three and nine months ended
September 30, 2008, respectively. As a result, our previously
reported results of operations calculated in accordance with GAAP
have been revised for the three and nine months ended
September 30, 2008, as follows:

Three months ended
September 30, 2008
------------------
Effect of the
new
As originally accounting
reported standard "Revised"
------------- ------------- ---------
Operating
income $1,483 $- $1,483
Interest
expense, net 74 59 133
Interest and
other income,
net 62 - 62
--- --- --
Income before
income taxes 1,471 (59) 1,412
Provision for
income taxes 313 (22) 291
--- --- ---
Net income $1,158 $(37) $1,121
====== ==== ======

Earnings per share:
Basic $1.09 $(0.03) $1.06
Diluted $1.09 $(0.04) $1.05

Nine months ended
September 30, 2008
------------------
Effect of the
new
As originally accounting
reported standard "Revised"
------------- ------------- ---------
Operating
income $4,077 $- $4,077
Interest
expense, net 245 174 419
Interest and
other income,
net 264 - 264
--- --- ---
Income before
income taxes 4,096 (174) 3,922
Provision for
income taxes 861 (66) 795
--- --- ---
Net income $3,235 $(108) $3,127
====== ===== ======

Earnings per share:
Basic $3.01 $(0.10) $2.91
Diluted $3.00 $(0.10) $2.90

(b) To exclude the impact of stock option expense. For the three and
nine months ended September 30, 2009 and 2008, the total pre-tax
expense for employee stock options was $29 million and $88 million,
respectively, and $25 million and $77 million, respectively.

"Adjusted" diluted EPS including the impact of stock option expense
for the three and nine months ended September 30, 2009 and 2008 was
as follows:

Three months ended Nine months ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----

"Adjusted" diluted EPS,
excluding stock option
expense $1.49 $1.23 $3.86 $3.49
Impact of stock option
expense (net of tax) (0.02) (0.02) (0.06) (0.05)
---- ---- ---- ----
"Adjusted" diluted EPS,
including stock option
expense $1.47 $1.21 $3.80 $3.44
===== ===== ===== =====

(c) To exclude the following (expenses)/recoveries associated with our
restructuring plan announced in August 2007 and certain additional
cost savings initiatives subsequently identified, as follows:

Separation Asset Other
costs (1) impairment (2) Total
------------- ---------- ------ -----

Three months ended
September 30, 2009
------------------------------
Research and
development (R&D) $- $(3) $- $(3)
Selling, general and
administrative (SG&A) - - (6) (6)
Other charges 3 - (4) (1)
--- --- --- ----
$3 $(3) $(10) $(10)
=== === ==== ====

Three months ended
September 30, 2008
------------------------------
Other charges $- $(1) $(7) $(8)
Interest and other income, net - - (9) (9)
--- --- --- ----
$- $(1) $(16) $(17)
=== === ==== ====

Nine months ended
September 30, 2009
------------------------------
Cost of sales (excludes
amortization of certain acquired
intangible assets) $- $(1) $- $(1)
R&D 3 (8) (1) (6)
SG&A 2 - (25) (23)
Other charges (31) - (4) (35)
--- --- --- ----
$(26) $(9) $(30) $(65)
=== === ==== ====

Nine months ended
September 30, 2008
------------------------------
Cost of sales (excludes
amortization of certain acquired
intangible assets) $- $(1) $- $(1)
R&D (3) - - (3)
SG&A - - 1 1
Other charges (4) (15) (20) (39)
Interest and other income, net - - (9) (9)
--- --- --- ----
$(7) $(16) $(28) $(51)
=== === ==== ====

(1) Severance and other separation costs partially offset in 2009
by the reversal of previously accrued expenses for bonuses and
stock-based compensation awards, which will be forfeited as a
result of the employees' termination.
(2) To exclude (i) from SG&A in 2009, integration costs associated
with certain cost saving initiatives, (ii) from Other charges
in 2009 and 2008, loss accruals for leases principally related
to certain facilities that will not be used in our business and
(iii) from Interest and other income, net in 2008, loss accrual
on the sale of certain less significant marketed products and
related assets.

(d) To exclude the ongoing, non-cash amortization of the R&D technology
intangible assets acquired with the acquisitions of Abgenix, Inc.
("Abgenix") and Avidia, Inc. ("Avidia").

(e) To exclude the ongoing, non-cash amortization of acquired product
technology rights, primarily ENBREL, related to the Immunex
Corporation ("Immunex") acquisition.

(f) To exclude loss accruals for settlements of certain commercial
legal proceedings.

(g) To exclude the incremental non-cash interest expense resulting
from our adoption of a new accounting standard for our convertible
notes (see (a) above).

(h) To exclude the write-off of inventory resulting from a strategic
decision to change manufacturing processes.

(i) To exclude merger related expenses incurred due to the Alantos
Pharmaceutical Holding, Inc. acquisition, primarily related to
incremental costs associated with retention.

(j) To reflect the tax effect of the above adjustments for 2009,
excluding certain of the loss accruals for settlements of commercial
legal proceedings (see (f) above).

(k) To exclude the income tax benefit (expense) recognized as the
result of resolving certain non-routine transfer pricing issues
with the Internal Revenue Service ("IRS") for prior periods.

(l) To exclude the net tax benefit resulting from adjustments to
previously established deferred taxes, primarily related to prior
acquisitions and stock option expense, due to changes in California
tax law effective for future periods.

(m) To exclude the tax benefit principally related to certain prior
period charges excluded from "Adjusted" earnings.

(n) To reflect the tax effect of the above adjustments for 2008,
excluding (i) certain of the restructuring charges (see (c) above),
(ii) certain of the loss accruals for settlements of commercial
legal proceedings (see (f) above) and (iii) certain components of
the write-off of inventory (see (h) above).

(o) The following table presents the computations for GAAP and
"Adjusted" diluted earnings per share, computed under the treasury
stock method. "Adjusted" earnings per share presented below
excludes stock option expense:

Three months ended Three months ended
September 30, 2009 September 30, 2008
------------------ ------------------
GAAP "Adjusted" GAAP "Adjusted"
---- ------------ ---- -----------
Income (Numerator):
Net income for basic
and diluted EPS $1,386 $1,518 $1,121 $1,308
====== ====== ====== ======

Shares (Denominator):
Weighted-average
shares for basic
EPS 1,016 1,016 1,058 1,058
Effect of
dilutive
securities 6 5 (*) 6 5 (*)
--- --- --- ---
Weighted-average
shares for diluted
EPS 1,022 1,021 1,064 1,063
===== ===== ===== =====

Diluted
earnings per
share $1.36 $1.49 $1.05 $1.23
===== ===== ===== =====

Nine months ended Nine months ended
September 30, 2009 September 30, 2008
------------------ ------------------
GAAP "Adjusted" GAAP "Adjusted"
---- ----------- ---- -----------
Income (Numerator):
Net income for basic
and diluted EPS $3,674 $3,949 $3,127 $3,761
====== ====== ====== ======

Shares (Denominator):
Weighted-average
shares for basic
EPS 1,020 1,020 1,075 1,075
Effect of
dilutive
securities 5 4 (*) 4 3 (*)
--- --- --- ---
Weighted-average
shares for diluted
EPS 1,025 1,024 1,079 1,078
===== ===== ===== =====

Diluted
earnings per
share $3.58 $3.86 $2.90 $3.49
===== ===== ===== =====

(*) Dilutive securities used to compute "Adjusted" diluted earnings
per share for the three and nine months ended September 30, 2009
and 2008 were computed under the treasury stock method assuming
that we do not expense stock options.

Amgen Inc.
Product Sales Detail by Product and Geographic Region
(In millions)
(Unaudited)

Three months Nine months
ended ended
September 30, September 30,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----

Aranesp(R) - U.S. $333 $458 $963 $1,290

Aranesp(R) - International 352 387 1,041 1,141

EPOGEN(R) - U.S. 663 634 1,866 1,810

Neulasta(R) - U.S. 657 633 1,876 1,850

NEUPOGEN(R) - U.S. 240 223 672 667

Neulasta(R) - International 214 219 603 620

NEUPOGEN(R) - International 99 117 290 342

Enbrel(R) - U.S. 872 838 2,430 2,531

Enbrel(R) - International 52 55 151 154

Sensipar(R) - U.S. 108 111 320 306

Sensipar(R) - International 57 50 160 138

Vectibix(R) - U.S. 23 26 72 83

Vectibix(R) - International 35 15 95 24

Other product sales - U.S. 22 6 54 23

Other product sales - International 9 12 15 34
--- --- --- ---

Total product sales $3,736 $3,784 $10,608 $11,013
====== ====== ======= =======

U.S. $2,918 $2,929 $8,253 $8,560

International 818 855 2,355 2,453
--- --- ----- -----

Total product sales $3,736 $3,784 $10,608 $11,013
====== ====== ======= =======

Amgen Inc.
Condensed Consolidated Balance Sheets - GAAP
(In millions)
(Unaudited)

September 30, December 31,
2009 2008 (a)
---- --------
Assets
Current assets:
Cash, cash equivalents and
marketable securities $14,013 $9,552
Trade receivables, net 2,331 2,073
Inventories 2,155 2,075
Other current assets 1,475 1,521
----- -----
Total current assets 19,974 15,221
Property, plant and
equipment, net 5,743 5,879
Intangible assets, net 2,674 2,988
Goodwill 11,335 11,339
Other assets 1,214 1,000
----- -----
Total assets $40,940 $36,427
======= =======

Liabilities and
Stockholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities $3,903 $3,886
Current portion of other long-
term debt 1,000 1,000
----- -----
Total current liabilities 4,903 4,886
Convertible notes 4,447 4,257
Other long-term debt 6,089 4,095
Other non-current
liabilities 2,643 2,304
Stockholders' equity 22,858 20,885
------ ------
Total liabilities and
stockholders' equity $40,940 $36,427
======= =======

Shares outstanding 1,016 1,047

(a) As discussed in more detail above in the notes to the Reconciliation
of GAAP Earnings to "Adjusted" Earnings, effective January 1, 2009,
we adopted a new accounting standard, which changed the method of
accounting for our convertible notes. In addition, as required, we
revised our previously reported financial statements to
retrospectively apply this change in accounting to prior periods.
As a result, our previously reported Consolidated Balance Sheet as
of December 31, 2008 has been revised as follows:

December 31, 2008
-----------------
As originally Effect of the new
reported accounting standard "Revised"
------------- ------------------- ---------
Other non-current
assets $1,016 $(16) $1,000
Convertible notes 5,081 (824)(1) 4,257
Other non-current
liabilities 1,995 309 (2) 2,304
Stockholders' equity 20,386 499 (3) 20,885

(1) The reduction in Convertible notes reflects the bifurcation of
the equity components of our convertible notes partially offset
by the accretion of the reduced carrying values resulting from
the recognition of non-cash interest expense through
December 31, 2008.

(2) The increase in Other non-current liabilities reflects the
impact of deferred income taxes.

(3) The increase in Stockholders' equity reflects the addition of
the equity components of our convertible notes, partially
offset by (i) non-cash interest expense recognized through
December 31, 2008 related to the accretion of the reduced
carrying values of our convertible notes and (ii) the impact
of deferred income taxes.

Amgen Inc.
Reconciliation of GAAP Debt Outstanding to "Adjusted" Debt
Outstanding
(In billions)
(Unaudited)

September 30, 2009
------------------
Adjustments for the
new accounting
GAAP standard "Adjusted"
---- ------------------- ----------

Total debt outstanding $11.5 $0.7 (a) $12.2

(a) To exclude the impact of the adoption of a new accounting standard
which changed the method of accounting for our convertible notes,
as discussed on the preceding pages.

Amgen Inc.
Reconciliation of GAAP Earnings Per Share
Guidance to "Adjusted" Earnings Per Share
Guidance for the Year Ending December 31, 2009
(Unaudited)
2009
----

GAAP earnings per share guidance $4.51 - $4.68

Known adjustments to arrive at "Adjusted" earnings:
Amortization of acquired intangible assets,
product technology rights (a) 0.18
Incremental non-cash interest expense (b) 0.15
Tax settlement (c) (0.08)
Stock option expense (d) 0.06 - 0.08
Cost savings initiatives (e) 0.04
Amortization of acquired intangible assets,
R&D technology rights (f) 0.04
Legal settlements (g) 0.02
California tax law change (h) (0.02)
Tax benefit for prior period charges (i) (0.02)
-----

"Adjusted" earnings per share guidance $4.90 - $5.05
===== =====

(a) To exclude the ongoing, non-cash amortization of acquired product
technology rights, primarily ENBREL, related to the Immunex
acquisition.

(b) To exclude the incremental non-cash interest expense resulting from
our adoption of a new accounting standard.

(c) To exclude the income tax benefit, net recognized as the result of
resolving certain non-routine transfer pricing issues with the IRS
for prior periods.

(d) To exclude stock option expense.

(e) To exclude expense related to cost saving initiatives.

(f) To exclude the ongoing, non-cash amortization of the R&D technology
intangible assets acquired with the Abgenix and Avidia acquisitions.

(g) To exclude loss accruals for settlements of certain commercial
legal proceedings.

(h) To exclude the net tax benefit resulting from adjustments to
previously established deferred taxes, primarily related to prior
acquisitions and stock option expense, due to changes in California
tax law effective for future periods.

(i) To exclude the tax benefit principally related to certain prior
period charges excluded from "Adjusted" earnings.

CONTACT: Amgen, Thousand Oaks
David Polk, 805-447-4613 (media)
Arvind Sood, 805-447-1060 (investors)

(Logo: http://www.newscom.com/cgi-bin/prnh/20081015/AMGENLOGO)

SOURCE Amgen

Media, David Polk, +1-805-447-4613, or Investors, Arvind Sood,
+1-805-447-1060, both of Amgen