Amgen Inc., F1Q09Earnings Call Transcript

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2009-04-23 18:48:17.0

Tags: Revenue, Amgen Inc., Operational Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Jim Birchenough - Barclays Capital

Jim Birchenough - Barclays Capital

I was wondering if you could give a bit more detail on the comments around some segments growing in terms of your guidance assumptions. Which segments are you expecting to grow? The second part of my question is in regards to Enbrel, if the economy continues to deteriorate do you think we could see further declines in Enbrel and is that contemplated in your guidance?

Bob Bradway

We’ll give you a break here and answer both those questions, but we would like you to stick to one question please and I will pass those over to George.

George Morrow

It is very hard to tell because I think certainly with regard to Enbrel and have we seen everything that’s going to happen. I think whenever you start a new plan year with managed care organizations you probably have the most disruption. So, our sense is that we may have borne the brunt of it, but nobody knows for sure and no one knows exactly where this economy is going, where unemployment is going and how many more people will lose health insurance. But, we think we’re through the worst of it, but we have to check that every day.

It terms of growth, we think that the GCSF market still has some growth and when I’m talking about growth I’m talking about combination of units and price. We think EPOGEN has growth potential. We think the SAPT market has growth potential and we think that the rheumatology segment will clearly grow. Dermatology we think will grow, but boy there was a big drop in that first quarter, so there is a pretty negative trend there, but hopefully that will stabilize.

Operator

Your next question comes from Michael Aberman with Credit Suisse.

Michael Aberman - Credit Suisse

Clearly your revenue guidance for the year contemplates booking a milestone revenue for denosumab up front. Can you help us understand what the quantity of that that you are including in your guidance?

Bob Bradway

Michael, we are not expecting denosumab to contribute much to the other revenue line, so it is premature to say what the contribution might be in terms of other revenue, but we’re not expecting that to be a significant contributor to our other revenue. We’re pleased with the progress we’re making and the partnership discussions, but again it is premature to give you any particular guidance on how that might up for us.

 

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