Amgen Inc (NASDAQ:AMGN) Q4 2017 Earnings Conference Call Transcript

Feb 01, 2018 • 05:00 pm ET

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Amgen Inc (NASDAQ:AMGN) Q4 2017 Earnings Conference Call Transcript

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Presentation
Operator
operator

My name is Skinner and I'll be your conference facilitator today for Amgen's Fourth Quarter 2017 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. There will be a question-and-answer session at the conclusion of the last speaker's prepared remarks.

(Operator Instructions)

I would now like to introduce Arvind Sood, Vice President of Investor Relations. Mr. Sood, you may now begin.

Executive
Arvind Sood

Okay. Thank you, Skinner. Good afternoon, everybody. I would like to welcome you to our conference call to discuss our business performance for 2017 and our outlook for 2018. Although our results exemplify our focus on volume-driven growth, tax reform has created profound changes and opportunities for our industry and our Company.

So to begin this dialogue, our Chairman and CEO, Bob Bradway will provide some perspective, followed by our CFO, David Meline who will review our Q4 and full-year 2017 results and provide guidance for 2018. Our Head of Global Commercial Operations, Tony Hooper, will review our product and geographic performance in 2017, followed by our Head of R&D, Sean Harper, who will provide a pipeline update.

As in the past, we will use slides corresponding to our presentation today and a link to these slides was sent earlier. We plan on using non-GAAP financial measures in today's presentation to provide information which may be useful in understanding our ongoing business performance. However, these non-GAAP financial measures should be considered together with GAAP results, and reconciliations of these measures are available in the schedules accompanying today's press release, a Form 8-K and also on the Investor Relations section of our website.

Just a reminder that some of the statements made during the course of our presentation today are forward-looking statements and our 2017 10-K and subsequent filings identify factors that could cause our actual results to differ materially.

So with that, I would like to turn the call over to Bob.

Executive
Bob Bradway

Thank you for joining our call. We have more ground than usual to cover with you in our prepared remarks this afternoon. We will be addressing not only our results for 2017 and our outlook for this year, but also the impact of tax reform, which we see is a very favorable development for our business. To kick off, I would offer that with another year of strong performance behind us, we are even more excited about the long-term prospects for our business than we were a year ago.

In 2017, we continued to deliver solid operating performance with earnings per share growing 8% and operating margins improving to an industry leading 53.5%. In capital terms, payout to our shareholders grew by 14% and we improved our return on capital to 33%. We delivered these results in a period of increased competition from many of our largest products, several of which have lost patent protection, and while continuing to invest heavily in the future of our business.

Our steady progress through 2017 places us squarely on track to deliver against the