Fluent Essays

You will be required to:Use the Mergent Intellect (Links to an external site.) and Mergent Archives (Links to an external site.) library business resources and/or other web sources to supplement the annual report that you uploaded in Week 1. Look up your publicly-traded company.You will share several paragraphs discussing the basic characteristics of your company in an original post, and reply to your classmates on their findings.Insert your company name as the title of your threadMORE INFORMATION DOWNLOADED BELOW. discussion_board_week2_requirements.docx _annual_letter_10_k_bookmarked__amgen.pdf Unformatted Attachment Preview Week 2 Discussion Board ( AMGEN COMPANY) This week’s discussion board will be a “corporation” fact-finding mission. The purpose of this exercise is to start your research on their company project. This is a research and report discussion forum based on your initial financial research of your corporation. Your professor will provide you with your assigned corporation by the beginning of Week 1. Before you start this exercise, write down what you know about your company. You will be required to: 1. Use the Mergent Intellect (Links to an external site.) and Mergent Archives (Links to an external site.) library business resources and/or other web sources to supplement the annual report that you uploaded in Week 1. 2. Look up your publicly-traded company. 3. You will share several paragraphs discussing the basic characteristics of your company in an original post, and reply to your classmates on their findings. 4. Insert your company name as the title of your thread. Your original post is due by Thursday of Week 2 at 11:59 PM (EST). Your original post must be submitted before you will be able to see other posts. Be sure to include pages of the required minimum length discussing all the items below for full credit on your initial post. Insert the name of your assigned corporation as the title of your thread. In your original post, provide reports of the stated required length on each of the following items. Include references. The responses to each of these questions can be re-applied within the appropriate sections of your final paper, so thorough work is encouraged: 1. Provide one full APA page of text (minimum) that identifies your company, its primary products, markets, subsidiaries, risks, and any special highlights about your assigned corporation. This is also required for the Corporate Description of your paper. 2. What is your assigned corporations current condition of the ’right-hand side of the balance sheet in terms of total debt to total equity of the firm? In other words, provide and analyze the debt to equity ratio. This is a required part of the weighted average cost of capital (WACC) portion of your paper. Provide one half-page APA text (minimum). 3. Provide one full APA page of text (minimum) that discusses the following items. (Note: One APA page total, not one APA page for each bullet.) This is also required for the Financial Statement Trend Assessment in your final paper. • • • Skim through your firms most recent annual report. What are your impressions on the companys income statement trends and balance sheet trends? Report on at least one interesting finding from each of the income statement trends and balance sheet trends. List some interesting financial facts about your company. This could be related to revenue, income, taxes paid, or any of the financial aspects examined in Chapters 2 and 3. Having done parts (a) and (b), now compare what you now know to what you knew about your company prior to this research. 2019 Letter to Shareholders | Amgen LETTER TO SHAREHOLDERS Robert A. Bradway, Chairman and Chief Executive Officer, Amgen Inc. To My Fellow Shareholders: As I write this letter, Amgen is approaching a significant milestone: our 40th anniversary. The date was April 8, 1980, when our founders established Applied Molecular Genetics (later shortened to Amgen) in Thousand Oaks, California, to explore new business opportunities made possible by the biotechnology revolution getting underway at that time. Since then, we’ve seen hundreds of biotech companies come and go as Amgen flourished. While Thousand Oaks still serves as our global headquarters—and our original building still stands—Amgen ranks today among the largest companies on the Fortune 500, with more than 23,000 employees in 100 countries around the world. We are proud of what we have accomplished—and eager to do more. We know that an aging global population will require innovative new treatments for illnesses like cancer and heart disease that claim millions of lives and cost society hundreds of billions of dollars each year. The pioneering spirit of Amgen —a hallmark for four decades—gives 2 us confidence that we can play an increasingly important role in the global healthcare ecosystem. By doing so, we are also confident that we can continue to deliver on the commitments that we make to you, our shareholders. DELIVERING RESULTS in our industry, which reflected our ability to manage our efficiency and ongoing productivity gains. We invested more than $4.0 billion1 in research and development, up 10\% from the prior year, as we advanced numerous potential new medicines across all stages of our pipeline. As anticipated, total revenues decreased slightly in 2019 as doubledigit, volume-driven growth of many of our newer medicines did not fully offset the decline in sales of our off-patent legacy products, which faced increased competition around the world. Total revenues of $23.4 billion were down 2\% from the prior year, with nonGAAP earnings per share rising 3\% to a record $14.82.1 For the full year, Amgen achieved a non-GAAP operating margin of 50.2\%,1 among the highest We also delivered an attractive return to our shareholders in 2019. Specifically, Amgen delivered a total shareholder return of 28\% last year, exceeding the 19\% average return of our peer group. Our five-year total shareholder return of 73\% also outpaced the average return of our peer group, which delivered a 46\% return over the same time period. Looking at an even longer investment horizon, a purchase of $10,000 of Amgen stock the day the company Total Shareholder Return 2015–2019 73\% Amgen Amgen Peers 46\% This is a non-GAAP financial measure. See reconciliation to U.S. generally accepted accounting principles (GAAP) accompanying this letter. 1 2019 Letter to Shareholders | Amgen $23.4B 2019 Total Revenues $14.82 Non-GAAP Earnings Per Share1 went public in 1983 would have been worth more than $8.6 million as of December 31, 2019, including the reinvestment of dividends. Additionally, in 2019, we returned more than $11 billion to shareholders in the form of dividends and share repurchases. RETURNING TO GROWTH 2019 was a challenging year and one for which we were prepared. Managing the impact of patent expirations on highly successful products is one of the fundamental challenges that all large companies in our industry eventually face. I was pleased to report on an earnings call in January 2020 that we expect to return to top-line growth this year. There are a few factors driving our expected resurgence, including our recently launched products, our ongoing global expansion, our robust pipeline of potential new medicines, and our acquisition of Otezla®. > $4B Non-GAAP Research and Development Investment1 Strengthening Our Product Portfolio We have launched a number of new medicines in recent years that treat some of the world’s most serious, prevalent, and costly diseases. We have been able to generate growth from these new products largely through volume gains, rather than price increases. This is critical in an environment in which healthcare systems around the world are wrestling with how to pay for the quality care that aging populations desire. In 2019, for example, we launched EVENITY®, the first and only osteoporosis treatment that both increases bone formation and reduces bone loss, thereby rapidly reducing the risk of fracture. Osteoporosis is a major public health Non-GAAP Operating Margin1 crisis affecting millions of people worldwide, especially women. The statistics are staggering. According to the World Health Organization, one in three women worldwide over the age of 50 will suffer a fracture due to osteoporosis. Each year in the U.S. alone, osteoporosis-related fractures account for 432,000 hospital admissions and 180,000 nursing home admissions—and after the first fracture, a woman is five times more likely to suffer another fracture within a year. Amgen has been engaged in the fight against osteoporosis for many years with Prolia®, our innovative, market-leading anti-resorptive therapy. “The quality of our people along with the support of the medical community have made Otezla® the blockbuster brand it is today. It’s clear that our Amgen colleagues possess the willingness to go beyond the scope of their daily task and the competitive drive to deliver above expectations. Together, we will ultimately improve Otezla®’s impact on patients.” – Colley B., who joined Amgen through the Otezla® acquisition This is a non-GAAP financial measure. See reconciliation to U.S. generally accepted accounting principles (GAAP) accompanying this letter. 1 50.2\% 3 2019 Letter to Shareholders | Amgen 2019 HIGHLIGHT Acquired Otezla®, the only oral, non-biologic treatment for psoriasis and psoriatic arthritis EVENITY® gives us another weapon in this fight, and we are encouraged by its early performance and long-term potential. We further strengthened our product portfolio in 2019 through the $13.4 billion acquisition of Otezla®, the only oral, non-biologic treatment for psoriasis and psoriatic arthritis. Otezla® bolsters our existing inflammation franchise, which includes Enbrel®, our largest product. Otezla® sales in 2019 totaled nearly $2 billion, with Amgen booking $178 million of these sales following the close of the acquisition in late November. We acquired the global rights to Otezla®, which is approved in more than 50 countries, including Amgen’s 10 largest markets. Through the acquisition, we also welcomed more than 800 new employees to Amgen and haven’t missed a beat for the more than 400,000 patients worldwide who have been treated with Otezla®. We expect this product to be a key growth driver for us in 2020 and beyond. EVENITY® and Otezla® join a portfolio that includes six medicines that in 2019 each generated annual sales in excess of $500 million and grew at high-single-digit or double-digit rates. Repatha®, for example, is Amgen’s medicine for people with high LDL cholesterol who are at risk for heart attacks and strokes—devastating health events that occur every 40 seconds in the U.S. In 2018, to address access challenges, we made Repatha® available in the U.S. at 60\% less than 2019 HIGHLIGHT Launched first two biosimilars in the U.S. to the cancer treatments Avastin® and Herceptin® its original list price. This decision led to 20\% sales growth in 2019 as more patients, especially senior citizens in the Medicare program, were able to access this important medicine at a more affordable co-pay. In addition to new innovative medicines, we are strengthening our product portfolio by leveraging our decades of biomanufacturing experience to bring to patients a reliable supply of high-quality biosimilars, which are typically priced below the originator medicines with which they compete. In 2019, AMGEVITA™, our biosimilar to the autoimmune disease treatment “OneOncology’s trust in Amgen’s biosimilars is rooted in the company’s experience and manufacturing processes. Our decision to be an early MVASI™ and KANJINTI™ adopter is increasingly important to our strategy to deliver high-quality cancer care at lower costs, which benefits patients and payers alike.” – Dr. Jeffrey Patton, Acting Chief Executive Officer and President of Physician Services at OneOncology, a network of leading community cancer centers 4 2019 Letter to Shareholders | Amgen 2019 HIGHLIGHT Announced strategic collaboration to expand oncology business in China and advance our oncology pipeline globally Humira®, the world’s best-selling medicine, generated more than $200 million in global sales. We also launched our first two biosimilars in the U.S., MVASI™ and KANJINTI™, which are biosimilars to the cancer treatments Avastin® and Herceptin®, respectively. In total, Amgen biosimilars generated $568 million in 2019 sales and we believe these medicines represent a significant growth opportunity for us over time. Biosimilars also benefit our business because they free up funds in healthcare budgets that can be redirected toward our innovative medicines. As the number of biosimilars in our portfolio grows, we are increasingly able to have more holistic conversations with healthcare systems about how best to care for the patients they serve—and how to pay for that care. For example, AMGEVITA™ is highly complementary to Otezla®, as both medicines treat patients with chronic inflammatory diseases. Similarly, MVASI™ and KANJINTI™ complement the many innovative cancer medicines in our portfolio. In 2020, we plan to launch AVSOLA™, our biosimilar to the inflammation treatment Remicade®, in the U.S., and we continue to advance several additional biosimilars through our pipeline, including ABP 938, our biosimilar to EYLEA® for age-related macular degeneration. Expanding Our Geographic Presence For much of our 40-year history, Amgen offered its medicines to patients primarily in one market: the U.S. Although the U.S. remains the world’s largest pharmaceutical market —and therefore continues to be a top priority for Amgen—the rest of the world offers increasingly compelling opportunities to serve more patients and drive growth. We are especially excited by our prospects in China and Japan, the world’s second- and third-largest pharmaceutical markets, respectively. In 2019, we announced a strategic collaboration with BeiGene—a biotechnology company with a large presence and deep experience in China—to expand Amgen’s oncology business there and advance the development of our innovative oncology pipeline globally. In January 2020, as part of the collaboration, Amgen acquired a 20.5\% ownership stake in BeiGene for approximately $2.8 billion, “When my 88-year-old mother fell and fractured her spine, we feared she would stay bedridden for life. Thankfully, her doctor prescribed EVENITY®. After several months of treatment, her bone mineral density has increased and her risk for another fracture has been greatly reduced.” – Hisoko N., Kyoto, Japan 5 2019 Letter to Shareholders | Amgen while BeiGene will contribute up to $1.25 billion to advance 20 medicines from Amgen’s innovative oncology pipeline. We will use data generated from clinical trials in China to support regulatory filings in that country and around the world. Additionally, BeiGene will commercialize select current and future Amgen oncology medicines in China for up to seven years, after which most of these medicines will return to Amgen. We are committed to serving cancer patients in China, and we expect BeiGene will enable us to have an impact sooner than we could have achieved on our own. Cancer currently claims an estimated 2.3 million lives in China every year and it will only become an even more pressing public health concern as the population ages. Beyond cancer, Amgen will continue to develop and commercialize medicines in China for chronic conditions such as cardiovascular disease. We have built our business in Japan largely through partnerships with local companies, including, most recently, Astellas Pharma. In April 2020, we will assume full ownership of the Amgen Astellas BioPharma joint venture, enabling us to do business in Japan through a wholly owned Amgen subsidiary. Japan is a “super-aged” society, with 27\% of its population 65 or older—the highest percentage in the world—and it will require ever more innovative medicines to treat diseases associated Amgen’s Response to COVID-19 As a leading global healthcare company and responsible corporate citizen, Amgen is committed to help address the COVID-19 outbreak. We have prioritized the safety of our employees, the continued supply of our medicines to patients, and the health of the communities where we live and work. For current information on our response to this unprecedented situation, please visit www.amgen.com/COVID-19. 6 with the aging process. We’ve enjoyed great success in Japan with EVENITY®, for example, the osteoporosis treatment described above. In fact, Japan was the first market in the world where EVENITY® was launched. We are confident that our current and emerging portfolio of medicines matches up well with the needs of patients in the Asia-Pacific region—so much so that we expect roughly 25\% of our total sales growth to come from this region over the next 10 years. 2019 HIGHLIGHT Moved seven potential new therapies into Phase 1 clinical studies 2019 Letter to Shareholders | Amgen Advancing Our Pipeline “I would say to Over the past five years, we have the people of invested nearly $19 billion1 in research and development. Amgen: Stay curious, As of this writing, more than stay focused. You’re making 31,000 patients are enrolled a huge difference.” in some 150 clinical trials – Brian S., prostate around the world involving dozens cancer patient of potential new Amgen medicines. In 2019 alone, we advanced seven potential new therapies into Phase 1 clinical studies, and we submitted Investigational New Drug applications researchers have known to bring four additional molecules about KRAS G12C for more into the clinic. In keeping with our than 30 years, but it’s long been enduring commitment to cutting-edge considered an “undruggable” target. research—two-thirds of the innovative Amgen scientists were the first to medicines we currently market are exploit a previously hidden crevice on first-in-class therapies—a large the surface of the KRASG12C protein majority of our pipeline programs aim to engineer a molecule that has to take medicine in new directions and demonstrated encouraging results for provide substantial new benefits to patients who otherwise currently have patients. very few treatment options. We are studying AMG 510 as a monotherapy and in combination with other cancer 2019 HIGHLIGHT therapies, and we expect data from some of these studies to become Advanced AMG 510, a potential available later this year. first-in-class medicine for non-small cell lung cancer and Amgen is also a pioneer in the other solid tumors development of bispecific T cell engagers, or BiTE® antibody constructs, which are designed to For example, AMG 510 is a potential harness a patient’s own immune first-in-class medicine for non-small system to fight cancer. Our pipeline cell lung cancer and other solid now includes about a dozen BiTE® tumors that have a particular genetic molecules directed against both liquid mutation known as KRAS G12C. This and solid tumors, including multiple mutation is found in approximately myeloma, acute myeloid leukemia, and 13\% of non-small cell lung cancers, prostate cancer. We expect to report 3\%–5\% of colorectal cancers, and important data on several of our BiTE® 1\%–2\% of other solid tumors. Cancer molecules in 2020. This is a non-GAAP financial measure. See reconciliation to U.S. generally accepted accounting principles (GAAP) accompanying this letter. 1 One in five cancer patients in the U.S. is already being treated with an Amgen medicine, and we are excited to continue building on our strong legacy in oncology. We also recognize that oncology is a very crowded and competitive therapeutic category— good news for patients but challenging for companies that are often pursuing the same promising targets. In response, we have worked hard in recent years to dramatically improve the speed with which we move new drug candidates forward. On average, we have taken three years out of a drug discovery and development cycle that historically has taken anywhere from 10 to 15 years. In some cases, as with AMG 510, we have been moving 2019 HIGHLIGHT Shortened the drug discovery and development cycle by an average of three years 7 2019 Letter to Shareholders | Amgen even faster. We also have become more agile in terms of how we allocate ... Purchase answer to see full attachment