Amgen Inc. (NASDAQ:AMGN) Q4 2022 Earnings Call Transcript

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Peter Griffith: Arvind, let me start by working our way from the tax question. So on the tax side of it, the 18% to 19% is increases by the amount. Although, as I have highlighted both last year and this year, we have a small carryover effect of about $125 million that’s currently capitalized in cost of goods sold that will be released that — excuse me, currently capitalized in inventory that will be released in the cost of goods sold, primarily during the first quarter without a corresponding tax benefit. So the answer is, going forward, after that $125 million works its way through cost of goods sold, it will be roughly equivalent to move from the Puerto Rico Excise Tax or the PRET which was recorded in cost of goods sold down to the actual income tax rate.

The question on guidance. And I think the question was, what’s included from BeiGene and what’s not. As I said earlier to Yaron’s question, what won’t be included now is our share of either losses or gains in BeiGene’s income. So we will include, on a mark-to-market basis in our GAAP income statement, the results of BeiGene and then the movements in the security but not in our non-GAAP income statement. We will no longer record our share of losses or their income.

Bob Bradway: Let me just say, Michael and to the prior question from Evan, if you need more detail on that to make sure you fully understand what we’re saying in our response, just let us know, we’ll get back to you. I think particularly, Evan, for your question, if you’re not familiar with that mechanism that’s common to us in France, happy just to provide more color for you. Again, Michael, I know a lot going on here and apologies for the disruption and don’t know if you were able to follow all the slides earlier. So if you need more color, let us know, we’ll call you back after the conference call. Okay. Go ahead, Arvind, to the next question.

Arvind Sood: Okay. Then we have a second question from Salveen asking, could you put the upcoming TEPEZZA Phase IV data and chronic context for us? What do you need to see? How would positive data expand the opportunity for the drug?

Bob Bradway: We are subject to the restrictions that we have on our ability to say anything on what’s in the documents. You want to address that?

David Reese: Yes. I mean, I think we’re restricted, of course, by Irish takeover rules here. What we can say is that it’s worth reminding everyone that the current label is broad and encompasses patients with thyroid eye disease, the — due to autoimmune thyroiditis. This is primarily a study that will generate data in a population that we believe will help with reimbursement and with payers. And let me ask Murdo to comment on that. I would point out that mechanistically, there is no difference between chronic thyroid eye disease and the acute form of the disease. In fact, it’s a semantic definition as to when the disease progresses to the chronic form but the underlying pathogenic mechanism of being driven in large part by IGF1R is intact. And therefore, based on prior data and mechanistically, we’re optimistic about that study. Murdo?

Murdo Gordon: Yes. Look, I think the Horizon team is doing a very good job commercializing this product and continue to help many patients within the broad current indication, as Dave mentioned. And I think additional data here could be additive to the already very promising growth of the product.

Bob Bradway: Okay. Thanks, Salveen, for your question. Let’s go to the next one, Arvind.

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