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

The main purpose of this 8-K filing is to officially report Amgen Inc.'s unaudited financial results for the third quarter of 2022. It also provides detailed explanations of the non-GAAP financial measures used by the company and announces an update to their non-GAAP reporting policy.

Why does Amgen use non-GAAP financial measures, and what are some examples?

Amgen uses non-GAAP financial measures to provide investors with a more meaningful view of its ongoing business performance and to facilitate comparisons across periods. Examples presented include non-GAAP earnings per share, non-GAAP operating income, and non-GAAP net income. These measures typically exclude items such as acquisition-related expenses, costs from transformation initiatives, and certain investment or legal settlement impacts.

How has Amgen's non-GAAP policy changed?

Beginning in the first quarter of 2022, Amgen updated its non-GAAP policy. It no longer excludes upfront or milestone payments for licensing or collaboration agreements, nor asset acquisitions of pre-approval, in-process R&D assets, or premiums paid on equity investments that are expensed. While this doesn't affect Q3 2022 results, it does alter previously reported 2021 non-GAAP figures, which have been restated.

Are the financial results in the press release GAAP or non-GAAP?

The press release contains both GAAP and non-GAAP financial measures. Amgen uses non-GAAP measures to supplement its GAAP results and provides reconciliations between the two in the press release. Investors should refer to these reconciliations to understand the specific adjustments made.

AMGN 8-K: Earnings & Results

Summary

Amgen Inc. (AMGN) filed an 8-K on November 3, 2022, primarily to report its third-quarter 2022 financial results. The filing includes a press release detailing the company's financial performance for the three and nine months ended September 30, 2022. A significant portion of the 8-K is dedicated to explaining Amgen's use of non-GAAP financial measures, including non-GAAP earnings per share, operating income, and net income. The company utilizes these non-GAAP metrics to provide investors with a more comprehensive understanding of its ongoing business operations, excluding items such as acquisition-related expenses, costs from cost-saving initiatives, and certain investment or legal settlement impacts. Additionally, Amgen clarified its updated non-GAAP policy implemented in the first quarter of 2022, which no longer excludes upfront or milestone payments for licensing or collaboration agreements, and asset acquisitions of pre-approval/in-process R&D. While this change does not affect the third-quarter 2022 results, it does impact previously reported third-quarter 2021 non-GAAP results, which have been recast for comparability. Investors should review the provided reconciliations to understand the differences between GAAP and non-GAAP figures.

Key Highlights

1Amgen announced its third-quarter 2022 financial results via an 8-K filing on November 3, 2022.
2The filing includes a detailed press release with unaudited results for the three and nine months ended September 30, 2022.
3Amgen emphasizes the use of non-GAAP financial measures (e.g., non-GAAP EPS, operating income) to offer a clearer view of ongoing business performance.
4Key exclusions from non-GAAP measures include acquisition-related expenses, costs from cost-saving initiatives, and certain non-operational items.
5The company also presents Free Cash Flow (FCF) and Total Revenues Adjusted for Foreign Currency Impact for enhanced liquidity and sales performance insights.
6Amgen updated its non-GAAP policy starting Q1 2022, no longer excluding certain upfront/milestone payments and R&D asset acquisition costs.
7Previously reported 2021 non-GAAP results have been recast to reflect the updated policy for better period-to-period comparability.

AMGEN INC 8-K Report, Financial Results (Nov 3, 2022)

Summary

Key Highlights

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