Amgen CEO Bob Bradway's 2022 Letter to Shareholders | Amgen

Yolaigna Ortiz works at Amgen's manufacturing complex in Juncos, Puerto Rico. Since 1992, Amgen has invested $4 billion to expand in Puerto Rico, where we now have more than 2,400 employees and operate 24 hours a day, seven days a week in our efforts to serve every patient, every time.


Amgen CEO Bob Bradway's 2022 Letter to Shareholders

 Download Amgen's 2022 Letter to Shareholders and Annual Report

To My Fellow Shareholders:

Robert Bradway

Robert A. Bradway
Chairman and Chief Executive Officer

Amgen performed very effectively in 2022, reaching roughly 10 million patients around the world with our approved medicines, advancing many promising new medicines, delivering strong financial performance, and keeping the Company on track to achieve attractive growth through the end of the decade.

Total revenues in 2022 were up 1% from the prior year to a record $26.3 billion. We also achieved record non-GAAP earnings per share of $17.69, up 27% from the prior year, and free cash flow of $8.8 billion.1

In a challenging year for the stock market as a whole, Amgen delivered total shareholder return in 2022 of 20%, ahead of the S&P 500 and the NASDAQ Biotechnology indices, both of which declined last year. We returned approximately $10.5 billion to shareholders in 2022 through share repurchases and dividends, with our dividend increasing for the eleventh consecutive year, up 10% per share over 2021.

Our portfolio now includes 27 approved medicines, 16 of which generated record 2022 sales and nine of which generated 2022 sales in excess of $1 billion. Looking across our portfolio as a whole, we achieved healthy volume growth of 9% in 2022, partially offset by a 5% decline in net selling price.

A number of our innovative medicines performed particularly well last year, including our cholesterol treatment Repatha® (sales +16% versus the prior year), our osteoporosis medicines EVENITY® (+48%) and Prolia® (+12%), and several of our oncology and hematology therapies, such as Nplate® (+27%), BLINCYTO® (+24%), and KYPROLIS® (+13%). Two of our newest innovations – LUMAKRAS®/LUMYKRAS to treat a type of non-small cell lung cancer and TEZSPIRE® to treat severe asthma – collectively contributed more than $450 million in 2022 sales, and we are pursuing additional indications for both.

2022 Total Revenue
Earnings Per Share1
GAAP Research and Development Investment
Operating Margin1,3

We also offer a number of high-quality biosimilars that have been prescribed to patients globally, with the potential to deliver savings to healthcare systems that can be reallocated toward innovative medicines. In 2022, we generated positive phase 3 clinical trial data for our biosimilar candidates to EYLEA®, SOLIRIS®, and STELARA®,2 positioning us to be in the first wave of these launches in the coming years, which we know is critical to success.

Product sales outside the U.S. exceeded $7 billion in 2022, with strong growth coming from the Asia-Pacific region.

You can find more information about our products at

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As a leader in the fight against cardiovascular disease, Amgen is partnering with the Family Heart Foundation to highlight the urgent need for the U.S. healthcare system to prioritize control of LDL (or "bad") cholesterol, the leading modifiable risk factor for heart attacks and strokes. "Our real-world analysis of 38 million high-risk Americans found that less than 30% ever reach their recommended LDL levels, and many are on no therapy at all," said Katherine Wilemon (shown at left), the founder and CEO of the Family Heart Foundation, which conducted the study. "Additionally, only 2% of high-risk patients are treated with more than one lipid-lowering therapy even though many patients can't get their LDL to goal with a single medicine."

Advancing Our Pipeline

We invested $4.4 billion in research and development in 2022, with three-quarters of the molecules in our pipeline representing potential first-in-class medicines for serious diseases where new treatments are very much needed. I'll highlight three of these medicines that we are advancing rapidly through clinical development.

Olpasiran is being studied in patients with high levels of lipoprotein(a), a type of "bad" cholesterol that is genetically determined and cannot be modified by diet or exercise. Phase 2 data released in 2022 showed remarkable reductions in lipoprotein(a) levels of as much as 95% in patients with established cardiovascular disease. We are currently enrolling several thousand patients in a phase 3 cardiovascular outcomes trial. In parallel, we are conducting a study in the U.S. focused on Black Americans, who are twice as likely to have elevated lipoprotein(a) levels as non-Hispanic whites. We are collaborating with the Morehouse School of Medicine and the Association of Black Cardiologists on this study, recognizing that minorities are often underrepresented in clinical trials despite being more susceptible to many diseases than the general population.

Tarlatamab is being studied as a treatment for relapsed/refractory small-cell lung cancer (SCLC), a very aggressive disease where the five-year survival rate is a mere 3%. We released phase 1 data last year showing that tarlatamab delivered significant antitumor activity and very encouraging overall survival rates and response durability in heavily pretreated SCLC patients. We are now enrolling patients in a potentially registrational trial of tarlatamab.

In a drive to transform how medicines are discovered, developed, and used, Amgen and its subsidiary deCODE Genetics are mining human data at a scale that was once unimaginable. When Amgen acquired deCODE in 2012, for example, deCODE had accumulated detailed genetic and health information on approximately 100,000 people, all from deCODE's home country of Iceland. Today, we have that information on 2.5 million volunteers from around the world. "Our industry-leading human data capabilities allow us to rapidly generate insights into disease and human health that inform our first-in-class clinical programs," said David Reese, executive vice president, Amgen R&D. "We have an unrivaled opportunity to move personalized medicine forward."

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AMG 133 is a potential new medicine to treat obesity, one of the most pressing public health issues of our time. Once thought to be a matter of lifestyle solvable through "willpower," obesity is now understood to be a complex, serious disease that affects approximately 750 million people worldwide and one which can lead to a myriad of health problems. Last year, we announced results from a phase 1 trial showing that a once-monthly dose of AMG 133 produced weight loss that was notable for its degree, rate, and durability. We have initiated a phase 2 trial of AMG 133 and are studying additional, earlier-stage molecules to treat obesity, all with different mechanisms of action.

The three molecules described above are all "multispecific" medicines, which we believe represent the next wave of drug discovery. Multispecifics are medicines that have more than one target and can work in a variety of ways. For example, as is the case with olpasiran and tarlatamab, they can act as "molecular matchmakers," linking a disease-causing target to a potent natural effector in our bodies that acts upon that target. They also can bind to multiple targets, acting on each one in a highly specific manner, as is the case with AMG 133. Multispecifics give us the potential to tackle the approximately 85% of disease-causing targets in the body that have long been considered "undruggable."

You can find more information about our pipeline at

Accessing External Innovation

Even as we continue to invest heavily in our own pipeline, we also recognize that there is great innovation happening outside our Company.

In October of last year, we acquired ChemoCentryx, Inc. (ChemoCentryx) for approximately $3.8 billion, net of cash acquired, adding to our portfolio TAVNEOS®, a first-in-class medicine to treat antineutrophil cytoplasmic autoantibody (ANCA)-associated vasculitis, an autoimmune disease that leads to inflammation and eventual destruction of small blood vessels in vital organs such as the kidneys.

In December, we announced an agreement to acquire Horizon Therapeutics plc (Horizon) for $27.8 billion. The acquisition is expected to close in the first half of this year and will add a number of first-in-class biologic medicines to our portfolio that treat serious inflammatory diseases. Horizon's best-selling product, TEPEZZA®, for example, is the first and only medicine approved in the U.S. for the treatment of active thyroid eye disease, a progressive and potentially vision-threatening disease that can cause symptoms such as eye bulging and double vision.

The strategic rationale behind both our acquisition of ChemoCentryx and our announced Horizon acquisition is the same. We believe that our decades of leadership in inflammation and nephrology, combined with our global presence and world-class biologic capabilities, will enable us to reach many more patients with life-changing medicines like TAVNEOS and TEPEZZA than either company could achieve on its own. We're off to a strong start with TAVNEOS, which, combined with the medicines we expect to come to us through the Horizon acquisition, will enhance Amgen's growth profile through the end of the decade and beyond, as these products are all early in their lifecycle – giving us the opportunity to positively impact their success over time.

Bemarituzumab and rocatinlimab are two additional first-in-class medicines that were sourced externally. Bemarituzumab came to us through our 2021 acquisition of Five Prime Therapeutics, Inc., an oncology-focused biotechnology company. Two phase 3 studies of bemarituzumab are underway in gastric cancer, which is the fifth-most-common cause of cancer death worldwide and particularly prevalent in the Asia-Pacific region, with earlier-stage trials exploring its use in other types of cancer. We are also enrolling patients with moderate-to-severe atopic dermatitis in a phase 3 trial of rocatinlimab in collaboration with our long-time partner in Japan, Kyowa Kirin Co., Ltd.

We will continue to pursue the best innovation, irrespective of where we find it.

Amgen's mission is to serve patients and in 2022, the Company held its first-ever Mission Week, giving employees around the world the chance to hear directly from patients about their experiences. Deborah Carpenter (shown here holding the arm of her sister) was diagnosed with KRAS G12C-mutated lung cancer more than two years ago and is currently being treated with Amgen's LUMAKRAS. She said that speaking at Mission Week was a big step toward her new purpose in life: to share a story of hope and survival with those who have lung cancer. "You are the reason that I am still here," Deborah told Amgen employees. "You are the reason that I am breathing and standing."

Operating Responsibly

Society confronts many challenges and is increasingly looking to the business community for solutions. I'll share two ways Amgen is looking to help.

We know, for example, that young people around the world do not have equal access to science education – a reality that the COVID-19 pandemic only served to exacerbate. And so in 2020 the Amgen Foundation and Harvard University launched LabXchange, a free, online science education platform that enables students to practice scientific experiments using interactive simulations of the same cutting-edge equipment found in modern biotech laboratories. In 2022, the Amgen Foundation announced that it would more than double its financial commitment to LabXchange over the next three years as part of a push to reach 50 million users worldwide by 2025.

We also know that minority-owned businesses in the U.S. have all too often lacked the capital they need to flourish. Earlier this year, Amgen committed to investing $150 million in Project Black, a fund that will create minority-owned businesses of scale that can serve as suppliers to Fortune 500 companies that spend billions of dollars a year on outside goods and services. This is consistent with the goal Amgen set in 2020 to double our 2019 spend with diverse suppliers in the U.S. and triple our spend with Black-owned businesses by 2023. It's also complementary to our participation in OneTen, a coalition of companies collectively seeking to hire 1 million Black Americans into good-paying jobs over the next 10 years.

Environmental sustainability has long been a priority for Amgen, with the Company targeting to achieve carbon neutrality in its operations by 2027, along with reductions in water used and waste disposed of 40% and 75%, respectively4. In 2022, hundreds of Amgen employees participated in International Coastal Cleanup® day – the 17th consecutive year that we have been a part of one of the world's largest efforts to keep our oceans healthy. Tanya Nunez, manager, Environmental Health, Safety and Sustainability, organized the Company's first cleanup event at our Thousand Oaks headquarters in 2005, and she is proud to see that our participation has grown to include 13 locations around the world. "Every day grants a new opportunity to impact our local environment," she said.

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You can learn more about our commitment to good corporate citizenship at

Leading Into the Future

This is an exciting time to be in biotechnology. The need for innovative medicines has never been greater, driven by a rapidly-aging global population. Our ability to innovate has never been greater, either, driven by remarkable advances in science and technology. Amgen has been a biotechnology leader for more than 40 years, and I believe we are very well-positioned to build on our leadership in the coming years.

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As the COVID-19 pandemic recedes, many companies have opted to bring their workers back to the office. Amgen has made a different choice, providing our office-based employees with continued flexibility to determine, together with their manager, where, when, and how to get their work done. This has helped to keep engagement high among current employees and it has also given us a competitive advantage in attracting new employees, especially diverse talent from different parts of the country. Ayandry Ruiz (shown at left with her husband and two boys) joined Amgen as an accounting manager in 2022, based in Miami. The ability to spend time with her young children – rather than sitting in rush-hour traffic – was a top priority when she began searching for a new job. "It's a critical time in my kids' lives when I need to be hands-on," she said. "I'm happy to be part of Amgen."

Everything we achieved last year, and everything we will achieve moving forward, is due to the hard work and commitment of our people. They are passionate about our mission to serve patients, they are clear on how their work contributes to our success, and they are ready to seize the many opportunities that await us. I'm grateful to all of them.

On behalf of Amgen's board of directors, our senior leadership team, and our employees around the world, I thank you for your continued support of our Company and the important work we do.

Robert A. Bradway
Chairman and Chief Executive Officer
March 18, 2023

  1. Non-GAAP financial measures. See reconciliations to U.S. generally accepted accounting principles (GAAP) accompanying this letter.
  2. EYLEA is a registered trademark of Regeneron Pharmaceuticals, Inc., SOLIRIS is a registered trademark of Alexion Pharmaceuticals, and STELARA is a registered trademark of Janssen Biotech, Inc.
  3. Non-GAAP operating margin is calculated as a percentage of product sales.
  4. Reductions are measured against a 2019 baseline and take into account only verified reduction projects, and do not take into account changes associated with the contraction or expansion of Amgen. Carbon neutrality goal refers to Scope 1 and 2 emissions.

Amgen Inc. GAAP to Non-GAAP Reconciliations (Dollars in millions) (Unaudited)
Twelve months ended December 31, 2022 2021*
GAAP operating income $9,566 $7,639
Adjustments to operating income:
Acquisition-related expenses (a) 2,619 2,684
Loss on divestiture (b) 567
Certain charges pursuant to our cost savings initiatives(c) (8) 147
Expense related to various legal proceedings 17 49
Total adjustments to operating income 3,195 2,880
Non-GAAP operating income $12,761 $10,519
GAAP operating income as a percentage of product sales 38.6% 31.4%
Adjustments to operating income 12.9 11.9
Non-GAAP operating income as a percentage of product sales 51.5% 43.3%
GAAP net income $6,552 $5,893
Adjustments to net income:
Adjustments to operating income 3,195 2,880
Adjustments to other (expense) income, net(d) 554 (248)
Adjustments to interest expense, net(e) 5
Income tax effect of the above adjustments(f) (690) (544)
Other income tax adjustments(e) (46) (3)
Total adjustments to net income 3,018 2,085
Non-GAAP net income $9,570 $7,978


The following table presents the computations for GAAP and non-GAAP diluted earnings per share (EPS):

Amgen Inc. GAAP to Non-GAAP Reconciliations (In millions, except per share data) (Unaudited)
Twelve months ended December 31, 2022 2021*
Net income $6,552 $9,570 $5,893 $7,978
Weighted-average shares for diluted EPS 541 541 573 573
Diluted EPS $12.11 $17.69 $10.28 $13.92

Amgen Inc. Reconciliations of Cash Flows (In millions) (Unaudited)
Twelve months ended December 31, 2022 2021
Net cash provided by operating activities $9,721 $9,261
Capital expenditures (936) (880)
Free cash flow $8,785 $8,381

Recast of 2021 Non-GAAP Financial Information As Reported to Reflect Updated Non-GAAP Policy (Unaudited)
$Millions, except EPS** Q1 '21 Q2 '21 Q3 '21 Q4 '21 FY '21
Net income (as reported) $2,150 $2,522 $2,664 $2,461 $9,797
Five Prime acquisition IPR&D expense (1,505) (1,505)
Licensing-related upfront payment to Kyowa Kirin (400) (400)
Tax impact8 60 26 86
Net income (recast) $2,150 $1,017 $2,324 $2,487 $7,978
Diluted shares 581 576 570 565 573
Diluted EPS (as reported) $3.70 $4.38 $4.67 $4.36 $17.10
Diluted EPS (recast) $3.70 $1.77 $4.08 $4.40 $13.92
Twelve months ended December 31, 2021
In millions (unaudited) Non-GAAP research and development expenses Non-GAAP acquired IPR&D Non-GAAP operating expenses
As reported $4,296 $13,555
Five Prime acquisition IPR&D expense 1,505 1,505
Licensing-related upfront payment to Kyowa Kirin 400 400
Recast $4,696 $1,505 $15,460

* Beginning January 1, 2022, following industry guidance from the U.S. Securities and Exchange Commission, the Company no longer excludes adjustments for upfront license fees, development milestones and in-process research and development (IPR&D) expenses of pre-approval programs related to licensing, collaboration and asset acquisition transactions from its non-GAAP financial measures. For purposes of comparability, the non-GAAP financial results for the full year of 2021 have been updated to reflect this change. See recast of 2021 non-GAAP measures on page 11.

(a) The adjustments related primarily to noncash amortization of intangible assets from business acquisitions.

(b) The adjustment related to a loss on the nonstrategic divestiture of Gensenta Ýlaç Sanayi ve Ticaret A.Þ.

(c) The adjustments related to headcount charges, such as severance, and to asset charges, such as asset impairments, accelerated depreciation and other charges related to the closure of our facilities.

(d) Effective January 2021, we began to exclude the gains and losses on our investments in equity securities from our non-GAAP measures that are recorded to Other (expense) income, net. For the year ended December 31, 2022, the adjustments related to equity investment losses and the amortization of the basis difference from our BeiGene, Ltd. (BeiGene) equity method investment. For the year ended December 31, 2021, the adjustments related to equity investment gains, partially offset by the amortization of the basis difference from our BeiGene equity method investment.

(e) The adjustments related to certain acquisition items, prior period and other items excluded from GAAP earnings.

(f) The tax effect of the adjustments between our GAAP and non-GAAP results takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). Generally, this results in a tax impact at the U.S. marginal tax rate for certain adjustments, including the majority of amortization of intangible assets, whereas the tax impact of other adjustments, including restructuring initiatives, depends on whether the amounts are deductible in the respective tax jurisdictions and the applicable tax rate(s) in those jurisdictions.

** Beginning January 1, 2022, the Company no longer excludes adjustments for upfront license fees, development milestones and IPR&D expenses of pre-approval programs related to licensing, collaboration and asset acquisition transactions from our non-GAAP measures. The Company has made these changes to its presentation of non-GAAP measures following industry guidance from the U.S. Securities and Exchange Commission. The reconciliations show the effects of the application of the updated policy as if it had been adopted at the beginning of 2021.

(8) Represents the tax impact of the licensing-related upfront payment to Kyowa Kirin Co., Ltd. that was recognized based off the pro-rata share of pre-tax income for the remainder of 2021.

Forward-Looking Statements:

This communication contains forward-looking statements that are based on the current expectations and beliefs of Amgen. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including any statements on the outcome, benefits and synergies of collaborations, or potential collaborations, with any other company (including BeiGene, Ltd., Kyowa-Kirin Co., Ltd., or any collaboration to manufacture therapeutic antibodies against COVID-19), the performance of Otezla® (apremilast) (including anticipated Otezla sales growth and the timing of non-GAAP EPS accretion), the Five Prime Therapeutics, Inc. acquisition, the Teneobio, Inc. acquisition, the ChemoCentryx, Inc. acquisition, or the proposed acquisition of Horizon Therapeutics plc, as well as 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, effects of pandemics or other widespread health problems such as the ongoing COVID-19 pandemic on our business, 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 reports filed by Amgen, including our most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and current reports on Form 8-K. Unless otherwise noted, Amgen is providing this information as of the date of this communication 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. Our results may be affected by our ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments involving current and future products, sales growth of recently launched products, competition from other products including biosimilars, difficulties or delays in manufacturing our products and global economic conditions. In addition, sales of our products are affected by pricing pressure, political and public scrutiny and 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. 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, including our devices, after they are on the market. Our business may be impacted by government investigations, litigation and product liability claims. In addition, our business may be impacted by the adoption of new tax legislation or exposure to additional tax liabilities. 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, or we may fail to prevail in present and future intellectual property litigation. We perform a substantial amount of our commercial manufacturing activities at a few key facilities, including in Puerto Rico, and also depend on third parties for a portion of our manufacturing activities, and limits on supply may constrain sales of certain of our current products and product candidate development. An outbreak of disease or similar public health threat, such as COVID-19, and the public and governmental effort to mitigate against the spread of such disease, could have a significant adverse effect on the supply of materials for our manufacturing activities, the distribution of our products, the commercialization of our product candidates, and our clinical trial operations, and any such events may have a material adverse effect on our product development, product sales, business and results of operations. We rely on collaborations with third parties for the development of some of our product candidates and for the commercialization and sales of some of our commercial products. In addition, we compete with other companies with respect to many of our marketed products as well as for the discovery and development of new products. Discovery or identification of new product candidates or development of new indications for existing products cannot be guaranteed and movement from concept to product is uncertain; consequently, there can be no guarantee that any particular product candidate or development of a new indication for an existing product 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. Certain of our distributors, customers and payers have substantial purchasing leverage in their dealings with us. The discovery of significant problems with a product similar to one of our products that implicate an entire class of products could have a material adverse effect on sales of the affected products and on our business and results of operations. Our efforts to collaborate with or acquire other companies, products or technology, and to integrate the operations of companies or to support the products or technology we have acquired, may not be successful. A breakdown, cyberattack or information security breach could compromise the confidentiality, integrity and availability of our systems and our data. Our stock price is volatile and may be affected by a number of events. Our business and operations may be negatively affected by the failure, or perceived failure, of achieving our environmental, social and governance objectives. The effects of global climate change and related natural disasters could negatively affect our business and operations. Global economic conditions may magnify certain risks that affect our business. 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. We may not be able to access the capital and credit markets on terms that are favorable to us, or at all.

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