Amgen Inc (NASDAQ:AMGN) Q3 2018 Earnings Conference Call - Final Transcript

Oct 30, 2018 • 05:00 pm ET


Amgen Inc (NASDAQ:AMGN) Q3 2018 Earnings Conference Call - Final Transcript


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My name is Ian, and I will be your conference facilitator today for Amgen's Third Quarter 2018 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. (Operator Instructions)

I would now like to introduce Arvind Sood, VP of IR. Mr. Sood, you may now begin.

Arvind Sood

Excellent. Thanks, Ian. Good afternoon, everybody. Thanks for joining us today. We have a lot of ground to cover, so I'll keep my comments brief. Continued execution, launch progress and pipeline advancement are some key themes that come to mind as I think about our third quarter results. To elaborate on these themes and more, I am joined today by Bob Bradway, our Chairman and CEO. After Bob's strategic review, our CFO, David Meline will review our financial results for the third quarter and provide updated guidance for 2018. Also joining us today is Tony Hooper, and then you'll get to hear from Murdo Gordon, our newly appointed Head of Global Commercial Operations. Following Murdo's review of product performance, our Head of R&D, Dave Reese will provide a pipeline update. We will use slides to guide our discussion today and a link to those slides was sent separately.

(Forward-Looking Cautionary Statement)

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

Bob Bradway

Okay, Arvind, thank you. On today's call, I'll provide an overview of our performance in Q3, speak to the progress we're making in delivering our strategy for long-term growth and share some thoughts on the current healthcare environment.

Let me start by acknowledging that while we're in the midst of a period of high volatility, driven by a variety of macro and political factors, our fundamental objectives of innovating for the benefit of patients and delivering for shareholders remain intact and unchanged. Looking to the future, there are bound to be headwinds, but we are confident in our ability to navigate them from a position of strength. You see evidence of that strength reflected once again this quarter in our healthy balance sheet, strong cash flows and efficient cost structure. We've said for some time that we expected growing pressures on drug prices in our industry. We can all see that plainly today. With price under pressure having innovative products which can deliver volume growth by meeting the needs of large numbers of patients is ever more important.

We have several such products. And you can see the benefit of this in the third quarter where our new and recently launched products had double-digit unit volume growth. We believe differentiated products like Prolia, Repatha and Aimovig offer attractive long-term growth prospects. Prolia continues to build strength globally and there continues to be large untapped potential in the area of osteoporosis. With Repatha, we're taking steps to open up access and improve patient affordability to this important therapy. (Technical Difficulty) And in fact is shaping up to be one of the industry's most successful recent launches, reflecting the pent up demand that exists in this area.