AMGEN ALSO PROVIDES 2023 GUIDANCE EXCLUDING ANY CONTRIBUTION FROM THE ANNOUNCED ACQUISITION OF HORIZON THERAPEUTICS
THOUSAND OAKS, Calif., Jan. 31, 2023 /PRNewswire/ -- Amgen (NASDAQ: AMGN) today announced financial results for the fourth quarter and full year 2022 versus comparable periods in 2021.
"We executed effectively in 2022, delivering strong volume growth, advancing numerous first-in-class medicines in our pipeline, and staying on track to achieve our long-term growth objectives," said Robert A. Bradway, chairman and chief executive officer. "The announced acquisition of Horizon Therapeutics, which we expect to complete in the first half of this year, represents a compelling opportunity to serve more patients and strengthen our growth profile."
Key results include:
- For the fourth quarter, total revenues were $6.8 billion, largely unchanged from Q4 2021. Q4 revenues benefited from a 4% increase in product sales, offset by lower Other Revenue from our COVID-19 manufacturing collaboration. Product sales growth was driven by 10% volume growth, partially offset by 3% lower net selling price and 2% negative impact from foreign exchange. Excluding the 2% negative impact of foreign exchange on product sales, total revenues increased 2%.
- Volume growth of 10% included double-digit volume growth for a number of products including LUMAKRAS®/LUMYKRAS™ (sotorasib), Nplate® (romiplostim), EVENITY® (romosozumab-aqqg), Repatha® (evolocumab), Parsabiv® (etelcalcetide), AMGEVITA™ (adalimumab), KYPROLIS® (carfilzomib), and Prolia® (denosumab).
- For the full year, total revenues increased 1% to $26.3 billion, resulting from a 2% increase in product sales driven by a 9% increase in volume, partially offset by 5% lower net selling price and 2% negative impact from foreign exchange. Excluding the 2% negative impact of foreign exchange on product sales, total revenues increased 3% for the full year.
- GAAP earnings per share (EPS) decreased 11% from $3.36 to $3.00 in the fourth quarter driven by increased other expense, partially offset by lower weighted-average shares outstanding in Q4 2022. For the full year, GAAP EPS increased 18% from $10.28 to $12.11, primarily driven by the write-off of $1.5 billion in Acquired In-Process Research & Development (Acquired IPR&D) associated with our acquisition of Five Prime Therapeutics in 2021.
- For the fourth quarter, GAAP operating income decreased from $2.3 billion to $2.2 billion, and GAAP operating margin decreased 2.7 percentage points to 34.0%. For the full year, GAAP operating income increased from $7.6 billion to $9.6 billion, and GAAP operating margin increased 7.2 percentage points to 38.6%.
- Non-GAAP EPS decreased 7% from $4.40 to $4.09 in the fourth quarter, driven by increased other expense, partially offset by lower weighted-average shares outstanding in Q4 2022. For the full year, non-GAAP EPS increased 27% from $13.92 to $17.69 driven by the write-off of $1.5 billion in Acquired IPR&D associated with our acquisition of Five Prime Therapeutics in 2021 and lower weighted-average shares outstanding in 2022.
- For the fourth quarter, non-GAAP operating income remained unchanged at $3.0 billion, and non-GAAP operating margin decreased 1.9 percentage points to 45.9%. For the full year, non-GAAP operating income increased from $10.5 billion to $12.8 billion, and non-GAAP operating margin increased 8.2 percentage points to 51.5%.
- The Company generated $8.8 billion of free cash flow for the full year versus $8.4 billion in 2021.
Non-GAAP EPS has been recast due to an update to our non-GAAP policy effective January 1, 2022, resulting in a $0.04 increase for the fourth quarter of 2021 and a $3.18 decrease for the full year 2021 of previously-reported non-GAAP EPS. Refer to Non-GAAP Financial Measures below for further discussion.
$Millions, except EPS, dividends paid per share and percentages | | Q4 '22 | | Q4 '21 | | YOY Δ | | FY '22 | | FY '21 | | YOY Δ |
Total Revenues | | $ 6,839 | | $ 6,846 | | — % | | $ 26,323 | | $ 25,979 | | 1 % |
GAAP Operating Income | | $ 2,230 | | $ 2,304 | | (3 %) | | $ 9,566 | | $ 7,639 | | 25 % |
GAAP Net Income | | $ 1,616 | | $ 1,899 | | (15 %) | | $ 6,552 | | $ 5,893 | | 11 % |
GAAP EPS | | $ 3.00 | | $ 3.36 | | (11 %) | | $ 12.11 | | $ 10.28 | | 18 % |
Non-GAAP Operating Income | | $ 3,009 | | $ 2,997 | | — % | | $ 12,761 | | $ 10,519 | | 21 % |
Non-GAAP Net Income | | $ 2,202 | | $ 2,487 | | (11 %) | | $ 9,570 | | $ 7,978 | | 20 % |
Non-GAAP EPS | | $ 4.09 | | $ 4.40 | | (7 %) | | $ 17.69 | | $ 13.92 | | 27 % |
Dividends Paid Per Share | | $ 1.94 | | $ 1.76 | | 10 % | | $ 7.76 | | $ 7.04 | | 10 % |
References in this release to "non-GAAP" measures, measures presented "on a non-GAAP basis," "free cash flow" (computed by subtracting capital expenditures from operating cash flow), "total revenues and product sales adjusted for foreign currency exchange rate impact" (computed by converting our current period local currency product sales using the prior period foreign currency exchange rates and comparing that to our current period product sales), "EBITDA, or earnings before interest, taxes, depreciation and amortization" (computed by adding interest expense, provision for income taxes, and depreciation and amortization expense to GAAP net income) and "debt leverage ratio" (calculated as the ratio of GAAP total debt to EBITDA) refer to non-GAAP financial measures. Beginning January 1, 2022, the Company's non-GAAP financial measures no longer exclude adjustments for upfront license fees, development milestones and IPR&D expenses of pre-approval programs related to licensing, collaboration and asset acquisition transactions. For purposes of comparability, the non-GAAP financial results for the fourth quarter and full year of 2021 have been updated to reflect this change. Adjustments to the most directly comparable GAAP financial measures and other items are presented on the attached reconciliations. Refer to Non-GAAP Financial Measures below for further discussion.
Product Sales Performance
Total product sales increased 4% for the fourth quarter of 2022 versus the fourth quarter of 2021. Unit volumes grew 10%, partially offset by 3% lower net selling price and 2% negative impact from foreign exchange. Product sales for the full year increased 2% versus 2021, driven by 9% volume growth, partially offset by 5% lower net selling price and 2% negative impact from foreign exchange.
General Medicine
- Prolia® sales increased 14% year-over-year to a record $992 million for the fourth quarter and 12% for the full year, primarily driven by volume growth. Volumes grew 11% for the quarter and 10% for the full year.
- EVENITY® sales increased 57% year-over-year to a record $225 million for the fourth quarter and 48% for the full year, driven by strong volume growth across our markets. Volumes grew 62% for the quarter and 52% for the full year.
- Repatha® sales increased 22% year-over-year to a record $333 million for the fourth quarter and 16% for the full year. Volume growth of 31% for the quarter and 47% for the full year was partially offset by lower net selling price. In the U.S., sales grew 9% for the full year, driven by 36% volume growth, partially offset by lower net selling price resulting from higher rebates to support and improve access for patients. Outside the U.S., sales grew 23% for the full year, driven by 58% volume growth, partially offset by lower net selling price. This volume growth and lower net selling price were both impacted by the inclusion of Repatha on China's National Reimbursement Drug List as of January 1, 2022. Repatha remains the global proprotein convertase subtilisin/kexin type 9 (PCSK9) segment leader, with over 1.5 million patients treated since launch.
- Aimovig®(erenumab-aooe) sales increased 27% year-over-year to a record $114 million for the fourth quarter and 31% for the full year, driven by higher net selling price, partially offset by lower volume. Going forward, we expect net selling price to decline to maintain broad formulary access for patients due to competitive dynamics.
- EPOGEN® (epoetin alfa) sales decreased 11% year-over-year for the fourth quarter, primarily driven by lower net selling price. For the full year, sales decreased 3%, driven by lower net selling price and lower inventory levels, partially offset by a 4% increase in volume. Going forward, we expect further declines in net selling price and volume erosion as we transition through the expiration of our contract with DaVita.
- Aranesp®(darbepoetin alfa) sales decreased 4% year-over-year for the fourth quarter, driven by unfavorable foreign exchange and lower net selling price, partially offset by increased volume. Sales decreased 4% for the full year, driven by lower net selling price and unfavorable foreign exchange impact, partially offset by favorable changes to estimated sales deductions and increased volume.
- Parsabiv® sales increased 35% year-over-year for the fourth quarter and 36% for the full year, primarily driven by volume growth resulting from 2022 purchases from a large dialysis organization following decreased usage in 2021.
- Sensipar®/Mimpara™ (cinacalcet) sales decreased 61% year-over-year for the fourth quarter, primarily driven by unfavorable changes in estimated sales deductions and unfavorable foreign exchange impact. Full year sales decreased 24%, primarily driven by volume declines in response to generic competition.
Inflammation
- TEZSPIRE®(tezepelumab-ekko) generated $79 million of sales in the fourth quarter and $170 million in its first year of launch, driven by strong adoption in the U.S. by both allergists and pulmonologists across patients with all types of severe asthma. Healthcare providers acknowledge TEZSPIRE's unique, differentiated profile and its broad potential to treat the 2.5 million patients worldwide with severe asthma who are uncontrolled, without any phenotypic or biomarker limitation.
- TAVNEOS®(avacopan) was acquired on October 20, 2022 and generated $21 million of sales in the fourth quarter. TAVNEOS is a recently launched, first-in-class treatment for severe active ANCA-associated vasculitis (AAV), an autoimmune disease that leads to inflammation and eventual destruction of small blood vessels.
- Otezla®(apremilast) sales decreased 2% year-over-year for the fourth quarter, driven by lower net selling price and unfavorable changes to estimated sales deductions, partially offset by 7% volume growth. Full year sales increased 2%, primarily driven by 7% volume growth, partially offset by lower net selling price largely because of enhancements to our co-pay and patient assistance programs to support new patients starting treatment as well as additional rebates to improve the quality of coverage.
- Enbrel®(etanercept) sales decreased 1% year-over-year for the fourth quarter, driven by declines in volume and net selling price, partially offset by higher year-end inventory levels. Full year sales decreased 8%, driven by a 5% unfavorable impact of changes to estimated sales deductions related to prior periods, 3% decline in volume and lower net selling price. Going forward, we expect further declines in net selling price year-over-year, driven by increased competition.We expect Otezla and Enbrel to follow the historical pattern of lower sales in the first quarter relative to subsequent quarters due to the impact of benefit plan changes, insurance reverification and increased co-pay expenses as U.S. patients work through deductibles.
- AMGEVITA™ sales increased 3% year-over-year to a record $119 million for the fourth quarter and 5% for the full year, driven by 25% volume growth for both periods, partially offset by unfavorable foreign exchange impact and lower net selling price resulting from increased competition. AMGEVITA continued to be the most prescribed adalimumab biosimilar in Europe.
Hematology-Oncology
- LUMAKRAS®/LUMYKRAS™ generated $71 million of sales for the fourth quarter and $285 million for the full year. Quarter-over-quarter sales declined 5%, driven by lower net selling price and unfavorable changes to estimated sales deductions, partially offset by 12% volume growth. Outside the U.S., LUMYKRAS has been approved in over 45 countries around the world. We are actively launching in 30 markets and pursuing reimbursement in the remaining countries.
- KYPROLIS® sales increased 14% year-over-year to a record $325 million for the fourth quarter and 13% for the full year, driven by 13% and 14% volume growth, respectively.
- XGEVA®(denosumab) sales decreased 11% year-over-year for the fourth quarter, primarily driven by 4% decline in volume and unfavorable changes to estimated sales deductions, partially offset by higher net selling price. Full year sales were relatively unchanged year-over-year as higher net selling price was offset by a 2% decline in volume and unfavorable foreign exchange impact. Going forward, we expect volume will continue to be impacted by competitive dynamics.
- Vectibix®(panitumumab) sales decreased 2% year-over-year for the fourth quarter, driven by unfavorable foreign exchange impact, partially offset by higher net selling price. Full year sales increased 2% year-over-year, driven by higher net selling price and volume growth, partially offset by unfavorable foreign exchange impact.
- Nplate® sales increased 66% year-over-year to a record $469 million for the fourth quarter and 27% for the full year, driven by volume growth. Nplate sales in the fourth quarter included $207 million related to a one-time order from the U.S. government.
- BLINCYTO®(blinatumomab) sales increased 24% year-over-year to a record $164 million for the fourth quarter, primarily driven by favorable changes to estimated sales deductions and higher net selling price. Sales increased 24% for the full year, driven by volume growth and higher net selling price.
- MVASI® (bevacizumab-awwb) sales decreased 33% year-over-year for the fourth quarter, primarily driven by lower net selling price. Sales decreased 23% for the full year, driven by lower net selling price, partially offset by volume growth. The most recently published Average Selling Price (ASP) for MVASI in the U.S. declined 38% year-over-year and 12% quarter-over-quarter. Looking forward, we expect continued net selling price erosion and declining volume driven by increased competition.
- KANJINTI®(trastuzumab-anns) sales decreased 55% year-over-year for the fourth quarter, driven by lower net selling price and unfavorable changes to estimated sales deductions. Sales decreased 45% for the full year, driven by lower net selling price and decline in volume. The most recently published ASP for KANJINTI in the U.S. declined 51% year-over-year and 22% quarter-over-quarter. Going forward, we expect continued net selling price deterioration and volume declines driven by increased competition.
- Neulasta®(pegfilgrastim) sales decreased 37% year-over-year for the fourth quarter and 35% for the full year, driven by declines in both net selling price and volume. The most recent published Average Selling Price for Neulasta in the U.S. declined 29% year-over-year and 16% quarter-over-quarter. Going forward, we expect increased competition to result in further declines in net selling price and volume.
- NEUPOGEN®(filgrastim) sales increased 10% year-over-year for the fourth quarter, primarily driven by favorable changes in estimated sales deductions, partially offset by volume declines. Full year sales decreased 14% year-over-year, driven by volume declines.
Product Sales Detail by Product and Geographic Region
$Millions, except percentages | | Q4 '22 | | Q4 '21 | | YOY Δ |
| | US | | ROW | | TOTAL | | TOTAL | | TOTAL |
Prolia® | | 682 | | 310 | | 992 | | 873 | | 14 % |
EVENITY® | | 157 | | 68 | | 225 | | 143 | | 57 % |
Repatha® | | 147 | | 186 | | 333 | | 273 | | 22 % |
Aimovig® | | 109 | | 5 | | 114 | | 90 | | 27 % |
EPOGEN® | | 114 | | — | | 114 | | 128 | | (11 %) |
Aranesp® | | 124 | | 224 | | 348 | | 362 | | (4 %) |
Parsabiv® | | 64 | | 29 | | 93 | | 69 | | 35 % |
Sensipar®/Mimpara™ | | (3) | | 10 | | 7 | | 18 | | (61 %) |
TEZSPIRE® | | 79 | | — | | 79 | | — | | NM |
TAVNEOS® | | 16 | | 5 | | 21 | | — | | NM |
Otezla® | | 520 | | 96 | | 616 | | 630 | | (2 %) |
Enbrel® | | 1,079 | | 19 | | 1,098 | | 1,108 | | (1 %) |
AMGEVITA™ | | — | | 119 | | 119 | | 115 | | 3 % |
LUMAKRAS®/LUMYKRAS™ | | 62 | | 9 | | 71 | | 45 | | 58 % |
KYPROLIS® | | 224 | | 101 | | 325 | | 284 | | 14 % |
XGEVA® | | 358 | | 126 | | 484 | | 545 | | (11 %) |
Vectibix® | | 109 | | 129 | | 238 | | 243 | | (2 %) |
Nplate® | | 374 | | 95 | | 469 | | 282 | | 66 % |
BLINCYTO® | | 96 | | 68 | | 164 | | 132 | | 24 % |
MVASI® | | 134 | | 71 | | 205 | | 304 | | (33 %) |
KANJINTI® | | 50 | | 13 | | 63 | | 139 | | (55 %) |
Neulasta® | | 187 | | 34 | | 221 | | 351 | | (37 %) |
NEUPOGEN® | | 22 | | 12 | | 34 | | 31 | | 10 % |
Other products* | | 90 | | 29 | | 119 | | 106 | | 12 % |
Total product sales | | $ 4,794 | | $ 1,758 | | $ 6,552 | | $ 6,271 | | 4 % |
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* Other products include Corlanor®, AVSOLA®, IMLYGIC® and RIABNI®, as well as sales by GENSENTA and Bergamo subsidiaries |
NM = not meaningful | | | | | | | | | | |
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$Millions, except percentages | | FY '22 | | FY '21 | | YOY Δ |
| | US | | ROW | | TOTAL | | TOTAL | | TOTAL |
Prolia® | | 2,465 | | 1,163 | | 3,628 | | $ 3,248 | | 12 % |
EVENITY® | | 533 | | 254 | | 787 | | 530 | | 48 % |
Repatha® | | 608 | | 688 | | 1,296 | | 1,117 | | 16 % |
Aimovig® | | 398 | | 16 | | 414 | | 317 | | 31 % |
EPOGEN® | | 506 | | — | | 506 | | 521 | | (3 %) |
Aranesp® | | 521 | | 900 | | 1,421 | | 1,480 | | (4 %) |
Parsabiv® | | 253 | | 129 | | 382 | | 280 | | 36 % |
Sensipar®/Mimpara™ | | 10 | | 54 | | 64 | | 84 | | (24 %) |
TEZSPIRE® | | 170 | | — | | 170 | | — | | NM |
TAVNEOS® | | 16 | | 5 | | 21 | | — | | NM |
Otezla® | | 1,886 | | 402 | | 2,288 | | 2,249 | | 2 % |
Enbrel® | | 4,044 | | 73 | | 4,117 | | 4,465 | | (8 %) |
AMGEVITA™ | | — | | 460 | | 460 | | 439 | | 5 % |
LUMAKRAS®/LUMYKRAS™ | | 222 | | 63 | | 285 | | 90 | | * |
KYPROLIS® | | 850 | | 397 | | 1,247 | | 1,108 | | 13 % |
XGEVA® | | 1,480 | | 534 | | 2,014 | | 2,018 | | — % |
Vectibix® | | 396 | | 497 | | 893 | | 873 | | 2 % |
Nplate® | | 848 | | 459 | | 1,307 | | 1,027 | | 27 % |
BLINCYTO® | | 336 | | 247 | | 583 | | 472 | | 24 % |
MVASI® | | 602 | | 299 | | 901 | | 1,166 | | (23 %) |
KANJINTI® | | 257 | | 59 | | 316 | | 572 | | (45 %) |
Neulasta® | | 959 | | 167 | | 1,126 | | 1,734 | | (35 %) |
NEUPOGEN® | | 87 | | 57 | | 144 | | 168 | | (14 %) |
Other products** | | 296 | | 135 | | 431 | | 339 | | 27 % |
Total product sales | | $ 17,743 | | $ 7,058 | | $ 24,801 | | $ 24,297 | | 2 % |
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* Change in excess of 100% | | | | | | | | | | |
** Other products include Corlanor®, AVSOLA®, IMLYGIC® and RIABNI®, as well as sales by GENSENTA and Bergamo subsidiaries |
NM = not meaningful | | | | | | | | | | |
Operating Expense, Operating Margin and Tax Rate Analysis
On a GAAP basis:
- Total Operating Expenses increased 1% year-over-year for the fourth quarter. For the full year, Total Operating Expenses decreased 9%. Cost of Sales margin decreased 0.7 percentage points in the fourth quarter and decreased 0.8 percentage points for the full year, primarily driven by lower COVID-19 antibody shipments and lower manufacturing cost, partially offset by acquisition-related charges and changes in our product mix. Research & Development (R&D) expenses decreased 2% in the fourth quarter and decreased 8% for the full year, primarily due to higher business development activity in 2021 and lower marketed product support, partially offset by higher late stage program support and research and early pipeline spend. Selling, General & Administrative (SG&A) expenses increased 10% in the fourth quarter and increased 1% for the full year primarily driven by expenses related to the ChemoCentryx acquisition.
- Operating Margin as a percentage of product sales decreased 2.7 percentage points to 34.0% in the fourth quarter and increased 7.2 percentage points for the full year to 38.6%.
- Tax Rate decreased 3.3 percentage points in the fourth quarter and decreased 1.3 percentage points for the full year. The fourth quarter tax rate decrease was primarily due to the Five Prime Therapeutics non-deductible Acquired IPR&D expense in the prior year and net favorable items, partially offset by a nondeductible loss from a nonstrategic divestiture. The full year tax rate decrease was primarily due to the Five Prime Therapeutics non-deductible Acquired IPR&D expense in the prior year, partially offset by a nondeductible loss from a nonstrategic divestiture and net unfavorable items.
On a non-GAAP basis:
- Total Operating Expenses were unchanged for the fourth quarter and decreased 12% for the full year. Cost of Sales margin decreased 1.2 percentage points in the fourth quarter and decreased 0.5 percentage points for the full year, driven by lower COVID-19 antibody shipments and lower manufacturing cost, partially offset by changes in our product mix. R&D expenses decreased 2% in the fourth quarter and decreased 8% for the full year, primarily due to higher business development activity in 2021 and lower marketed product support, partially offset by higher late-stage program support and research and early pipeline spend. SG&A expenses increased 2% in the fourth quarter driven by higher marketed product support. For the full year, SG&A expenses were unchanged.
- Operating Margin as a percentage of product sales decreased 1.9 percentage points in the fourth quarter to 45.9%, and increased 8.2 percentage points to 51.5% for the full year.
- Tax Rate increased 2.8 percentage points in the fourth quarter and decreased 0.7 percentage points for the full year. The fourth quarter tax rate increase was primarily due to earnings mix and net favorable items in the prior year as compared to the current quarter. The full year tax rate decrease is primarily due to the Five Prime Therapeutics non-deductible Acquired IPR&D expense in the prior year, partially offset by net unfavorable items in the current year as compared to the prior year.
$Millions, except percentages | | GAAP | | Non-GAAP |
| | Q4 '22 | | Q4 '21 | | YOY Δ | | Q4 '22 | | Q4 '21 | | YOY Δ |
Cost of Sales | | $ 1,747 | | $ 1,718 | | 2 % | | $ 1,071 | | $ 1,096 | | (2 %) |
% of product sales | | 26.7 % | | 27.4 % | | (0.7) pts | | 16.3 % | | 17.5 % | | (1.2) pts |
Research & Development | | $ 1,324 | | $ 1,348 | | (2 %) | | $ 1,291 | | $ 1,319 | | (2 %) |
% of product sales | | 20.2 % | | 21.5 % | | (1.3) pts | | 19.7 % | | 21.0 % | | (1.3) pts |
Selling, General & Administrative | | $ 1,572 | | $ 1,425 | | 10 % | | $ 1,468 | | $ 1,434 | | 2 % |
% of product sales | | 24.0 % | | 22.7 % | | 1.3 pts | | 22.4 % | | 22.9 % | | (0.5) pts |
Other | | $ (34) | | $ 51 | | * | | $ — | | $ — | | NM |
Total Operating Expenses | | $ 4,609 | | $ 4,542 | | 1 % | | $ 3,830 | | $ 3,849 | | — % |
| | | | | | | | | | | | |
Operating Margin | | | | | | | | | | | | |
operating income as % of product sales | | 34.0 % | | 36.7 % | | (2.7) pts | | 45.9 % | | 47.8 % | | (1.9) pts |
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Tax Rate | | 7.6 % | | 10.9 % | | (3.3) pts | | 13.4 % | | 10.6 % | | 2.8 pts |
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pts: percentage points | | | | | | | | | | | | |
* change in excess of 100% | | | | | | | | | | | | |
NM = not meaningful | | | | | | | | | | | | |
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$Millions, except percentages | | GAAP | | Non-GAAP |
| | FY '22 | | FY '21 | | YOY Δ | | FY '22 | | FY '21 | | YOY Δ |
Cost of Sales | | $ 6,406 | | $ 6,454 | | (1 %) | | $ 3,951 | | $ 3,994 | | (1 %) |
% of product sales | | 25.8 % | | 26.6 % | | (0.8) pts | | 15.9 % | | 16.4 % | | (0.5) pts |
Research & Development | | $ 4,434 | | $ 4,819 | | (8 %) | | $ 4,341 | | $ 4,696 | | (8 %) |
% of product sales | | 17.9 % | | 19.8 % | | (1.9) pts | | 17.5 % | | 19.3 % | | (1.8) pts |
Acquired IPR&D | | $ — | | $ 1,505 | | NM | | $ — | | $ 1,505 | | NM |
% of product sales | | — % | | 6.2 % | | NM | | — % | | 6.2 % | | NM |
Selling, General & Administrative | | $ 5,414 | | $ 5,368 | | 1 % | | $ 5,270 | | $ 5,265 | | — % |
% of product sales | | 21.8 % | | 22.1 % | | (0.3) pts | | 21.2 % | | 21.7 % | | (0.5) pts |
Other | | $ 503 | | $ 194 | | * | | $ — | | $ — | | NM |
Total Operating Expenses | | $ 16,757 | | $ 18,340 | | (9 %) | | $ 13,562 | | $ 15,460 | | (12 %) |
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Operating Margin | | | | | | | | | | | | |
operating income as % of product sales | | 38.6 % | | 31.4 % | | 7.2 pts | | 51.5 % | | 43.3 % | | 8.2 pts |
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Tax Rate | | 10.8 % | | 12.1 % | | (1.3) pts | | 13.8 % | | 14.5 % | | (0.7) pts |
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pts: percentage points | | | | | | | | | | | | |
* change in excess of 100% | | | | | | | | | | | | |
NM = not meaningful | | | | | | | | | | | | |
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Cash Flow and Balance Sheet
- The Company generated $2.3 billion of free cash flow in the fourth quarter of 2022 versus $2.5 billion in the fourth quarter of 2021. The Company generated $8.8 billion of free cash flow for the full year 2022 versus $8.4 billion in 2021.
- The Company's fourth quarter 2022 dividend of $1.94 per share was declared on October 28, 2022, and was paid on December 8, 2022, to all stockholders of record as of November 17, 2022, representing a 10% increase from 2021.
- During the fourth quarter, there were no repurchases of common stock. 26.1 million shares of common stock were repurchased in 2022.
- Cash and investments totaled $9.3 billion and debt outstanding totaled $38.9 billion as of December 31, 2022. Debt leverage was approximately 3.2 times EBITDA as of December 31, 2022.
$Billions, except shares | | Q4 '22 | | Q4 '21 | | YOY Δ | FY '22 | | FY '21 | | YOY Δ | |
Operating Cash Flow | | $ 2.6 | | $ 2.8 | | $ (0.2) | $ 9.7 | | $ 9.3 | | $ 0.5 | |
Capital Expenditures | | $ 0.3 | | $ 0.3 | | $ 0.1 | $ 0.9 | | $ 0.9 | | $ 0.1 | |
Free Cash Flow | | $ 2.3 | | $ 2.5 | | $ (0.2) | $ 8.8 | | $ 8.4 | | $ 0.4 | |
Dividends Paid | | $ 1.0 | | $ 1.0 | | $ 0.1 | $ 4.2 | | $ 4.0 | | $ 0.2 | |
Share Repurchases | | $ — | | $ 1.5 | | $ (1.5) | $ 6.3 | | $ 5.0 | | $ 1.3 | |
Average Diluted Shares (millions) | | 539 | | 565 | | (26) | 541 | | 573 | | (32) | |
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Note: Numbers may not add due to rounding | | | | | | | | | | | | |
$Billions | | 12/31/22 | | 12/31/21 | | YTD Δ |
Cash and Investments | | $ 9.3 | | $ 8.0 | | $ 1.3 |
Debt Outstanding | | $ 38.9 | | $ 33.3 | | $ 5.6 |
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Note: Numbers may not add due to rounding | | | | | | |
2023 Guidance (Excludes any contribution from the announced acquisition of Horizon Therapeutics)
For the full year 2023, excluding any contribution from the announced acquisition of Horizon Therapeutics, the Company expects:
- Total revenues in the range of $26.0 billion to $27.2 billion.
- On a GAAP basis, EPS in the range of $13.16 to $14.41, and a tax rate in the range of 17.0% to 18.5%.
- On a non-GAAP basis, EPS in the range of $17.40 to $18.60, and a tax rate in the range of 18.0% to 19.0%.
- Capital expenditures to be approximately $925 million.
- Share repurchases not to exceed $500 million.
FourthQuarter Product and Pipeline Update
The Company provided the following updates on selected product and pipeline programs:
General Medicine
Repatha
- In November, results were presented from the Repatha FOURIER and FOURIER-open label extension studies demonstrating a direct relationship between lower achieved low-density lipoprotein cholesterol (LDL-C) levels, down to very low LDL-C levels
