What is the main purpose of this 8-K filing?

This 8-K filing's primary purpose is to announce and provide Amgen's first-quarter 2022 financial results, as detailed in the accompanying press release. It also serves to inform investors about an update to the company's non-GAAP financial reporting policy.

Why does Amgen provide non-GAAP financial measures?

Amgen provides non-GAAP financial measures, such as non-GAAP earnings per share and free cash flow, to offer investors additional insights into the company's ongoing business performance and financial health. They are intended to facilitate comparisons of results across different periods by excluding items that may be volatile or not indicative of core operations, such as acquisition-related costs and one-time charges.

What is changing in Amgen's non-GAAP reporting policy?

Effective from the first quarter of 2022, Amgen will no longer exclude upfront or milestone payments for licensing/collaboration agreements, nor will it exclude costs related to asset acquisitions of pre-approval, in-process R&D assets, or premiums paid on equity investments that are expensed upfront. These previously excluded items will now be reflected in the non-GAAP results.

Will previously reported non-GAAP results be restated?

Yes, Amgen states that prior period non-GAAP results will be recast to conform to the new non-GAAP policy. Exhibit 99.2 provides the recast presentation for 2021 non-GAAP results to reflect this updated policy.

AMGN 8-K: Earnings & Results

Summary

Amgen Inc. (AMGN) filed an 8-K on April 27, 2022, to report its first-quarter 2022 financial results. The filing primarily furnished the company's earnings press release, which detailed financial performance and included reconciliations of non-GAAP financial measures to GAAP. The company emphasizes that its non-GAAP measures, such as non-GAAP earnings per share and free cash flow, are provided to offer investors a clearer understanding of ongoing business performance and liquidity, facilitating comparisons across periods. Key adjustments to GAAP for non-GAAP reporting include acquisition-related expenses (like amortization of acquired intangibles and impairments of in-process R&D), costs associated with cost-saving initiatives (severance, accelerated depreciation), and other non-ordinary course items such as investment transaction gains/losses and legal settlement expenses. Notably, Amgen is also updating its non-GAAP policy starting Q1 2022, ceasing to exclude upfront/milestone payments for licensing and collaboration agreements, as well as asset acquisitions of pre-approval/in-process R&D. Prior periods will be recast to reflect this change.

Key Highlights

1Amgen announced its first-quarter 2022 financial results on April 27, 2022.
2The company provided a press release containing unaudited financial results and a reconciliation of non-GAAP to GAAP financial measures.
3Non-GAAP financial measures discussed include non-GAAP EPS, operating income, and free cash flow, intended to enhance investor understanding of ongoing performance and liquidity.
4Adjustments to GAAP for non-GAAP calculations primarily include acquisition-related expenses, cost savings initiative expenses, and other non-ordinary course items.
5Amgen is updating its non-GAAP policy, effective Q1 2022, to no longer exclude certain upfront/milestone payments and asset acquisition-related costs.
6Prior period non-GAAP results (2021) will be recast to align with the updated non-GAAP policy.
7The filing includes Exhibit 99.1 (Press Release) and Exhibit 99.2 (Recast 2021 Non-GAAP Financial Information).

AMGEN INC 8-K Report, Financial Results (Apr 27, 2022)

Summary

Key Highlights

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