Amgen Inc. v. F. Hoffmann-LaRoche LTD et al

Filing 54

DECLARATION re #53 Memorandum in Opposition to Motion of Michael R. Gottfried in Support of Amgen Inc.'s Opposition to Defendants' Motion to Dismiss for Lack of Subject Matter Jurisdiction and Failure to State A Claim for Which Releif May be Granted by Amgen Inc.. (Attachments: #1 Exhibit 1#2 Exhibit 2#3 Exhibit 3#4 Exhibit 4#5 Exhibit 5#6 Exhibit 6#7 Exhibit 7#8 Exhibit 8#9 Exhibit 9#10 Exhibit 10#11 Exhibit 11#12 Exhibit 12#13 Exhibit 13#14 Exhibit 14#15 Exhibit 15#16 Exhibit 16#17 Exhibit 17#18 Exhibit 18#19 Exhibit 19#20 Exhibit 20 (part 1 of 2)#21 Exhibit 20 (part 2 of 2))(Gottfried, Michael)

Amgen Inc. v. F. Hoffmann-LaRoche LTD et al

Doc. 54 Att. 14

Case 1:05-cv-12237-WGY

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EXHIBIT 14

Dockets.Justia.com

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FINAL
Event Transcript
AMGN -03 2003Amgen Earnings Conference Call
Event Date/Time: Oct. 21. 2003 / 5:00PM ET Event Duration: 5t min

OVERVIEW
In 3@3, AMGN's business continued to demonstrate strong performance both domestically and internationally in the key therapeutic areas ofoncology, inflammation, and nephrology. Adjusted 3Q03 EPS was $0.53 per share. ~o. has revised its revenue guidance to a range of $8.1-8.4b from S8.04.5b. Q&A Focus: Aranesp, NEUPOGEN/Neulasta conversion, and ABX-EGF program.

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I,zWE~ - Q32003/~gen E~rrirgs(3qfere~ Call
CORPORATE
Cary Ros~n~ky An~m Inc- Dido dlnv~o" Rdadms Kevin ~ A~/~- C~ ~C~ Ri~d N~ula A~ I~- ~ Fi~ ~ ~C~d~ ~CFO George Morrow Arrg~ Inc- EVP, Gldad Com7add Opeatims Roger Pedmutter Amgm Inc- EVP, Resa~n and De/dqarr~t Beth S~i denberg Arran Inc-SVP, Cli~J~I De/dg:~qa~t

FINAL
PRE~t'fI'ATION Operator

TRANSCRIPT
PARTI CI PANTS

Good dternoon lacles md gentlen,m. My nmne isPa~l and I'll beyour conference f~dlit~tor toda/. At thistime I would like towelcome even!one toAmg~'s Third Qualer Ea-nings Conference C~I. [operator ing:ructions] Thank you, LaJes md gentlemen, I would now like to introduceCa-y Rosmg~y Smior Directorof Inve~orRe!~tions Mr. Ros~qg<y. You ma/ beg~n. Ca~ Ros~nsky - Amgm I nc - D itato" d l nvedo" Rdabms

ODNFERENCE

C~L

PARTIOPANTS

Robert Goldman Buokindlam Rez~ldl - Andyd Eric Schmitt S~ G. Co~n - Analyst Ma'k Schoenebaum R~ce" Ja#Tay- Analyst May Kin Ho Gddmae Sa(t~- Analyst Craig Parker L dlman Btdhes - Analyst 3.mnifer Chao RBC Capital Markds- Analyst Elise Wang Sm'th Bame/- Analyst Mike king BencdArr~fda Se~nties - Ardyst Matt Geller CIBC Wold Ma~kds - Analyst Deonis Harp D~ut~l Bark - Analyst Caroline Copithome M~an Startle/- Analyst Mak Aufter Warhoda- Analyst Joel Sendek L azad - Analyst Jeffrey Porjis Sanfod BeTddn - Analyst

Thank you, PaJI. Good dternoon aqd welcome, everybody. Before we sta-t, I need to rn2Ke caJtionay ~ternent. When wee~irn~e revenue~ operzting magins, c~it~l expenclture~ ca~ and other financi~ metricsand ds~ussleg~l, at;itra[ion, political and reguld~ory orclinicg reealtssuch, eslirr'~esand re~lts a-e forwa-d-looking g~ements, aqd ofcourse, no a~ura~ce can heaven thg the estirnateswill bem_,cur~te and ~:tug resultscould va'y On thiscdl, wemaj dscussGAAP and non-GAAP finmcial rnea~res in m~cordmce with ~ r~ul~tion G, you ca~ find areconcili~tion of the me~Jres on our Web ~te g www.angen.com and th~t'swithin theinvestor s~ction of the Web ~te. Re~e refer toArngen'smo~t rec~nt form 1OK md IOQ reportsfor a:Jcition~l information on theuncertzintiesand ri~ factorsrel~ted to our begne~s Ifyou ha~e not received our pre~ release c~l Denise Ba-rill ~t 805-447-3433 md she'll resend it. I fyou ha/e fur[herques[ions alter this conference c.:~ll, ple~e oonta:;t my office ~ 805-447-4634. Thisconferencec~tl isbelng Wel:x~@ via the Amgen homo ~ md it will be achived for 72 hoursfollowing thec,tl. I wouldlike to introduceKevin Sqa-er, Arng~'sCh~rmm aqd Chief Executive Officer.

Kevin Sl~,'er - Arrg~ /nc- ChahTn~ a-dCEO Thinks, Ca'y. Good a'ternoon. With metoda! a-e Richad Nanula Executive Vice Prudent Finance 8r~tegy and Communic~tionsmd Chief Finand~l Officer, C-~orge morrow, Executive Vice Prevalent md G~ol~ Commerd~ Operations

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I

FINAL

TRANSCRIPT

A'vlOl - ~2003/~gen Earrings(3~ferenmOall
y~a~tal~Jtis i:~ti~4~s George will provide more detail on the comrnercid pie lemon, the maket dyna-nice rde~e prodeds I would like to cengr~tul~e our cynic ceun~(ph) te~rn for ~1 their ha-d work worth the time the N BA filing food sed drug a:~nini~trdzion.lf~oroved, cyniccoun~will recresentArngen's firg s~ll molecule, thismavel therapy tre~rnent ma/ heip chronic kidney (isea~e i~ients with secenday hypo per~thyroidam who a-e ~t ri~k of~nificaqt bonec~sea~ a~d ca-dova~ulF complic~=t ion s Now le~'sbecjn off Richad md lwill review thefina~ci~ performmce for thequaffer. Richad. Riohrrrn~'ms ad CFO Inc- EVP, Finanm. Strate:j/ and C c - a d Nanula -Arngm Thinks Kevin, b~fore I b~n I wmt to mention that our compai~nswith theQ32C:x32 retcortsreflect thefmt th~ we asquired Emre~ on July15th of 2002 md hereit'sbeenoncelogy, thesame month. The compaisen yea- over yea" isstaffing to r~ect themore compa~le picture thin thela~ few quaffers I'm pleamd to report th~ a~usted eanings per ~a-e for the third quaffer were 53cents per ~ha-e, m increa~d 56% over a~us~ed ea-nings per ~ha-efor thesame period ayea- agg. Ac~us~ed ea-nings per ~hae in a~us~ed northwest inceme for the third quaffer exclude certain expenses rei~ted to the m_,quidtion of I mmunex md aone-time expense of $47 million reid~ed to the leg~ settlement a~oci~ted with the compmy's laN~uit with J~n N en t~h recj~rcing our proce~for produdng Neupogen md Neula~a Totg product s~eswere $2.1 I:illion, m increa~ of 54% over thethirdquafferla.=t year. U.S proquct s~eswere approxirn~ely $1.8 billion, m incr~ of 47% ver~Jsathird quaffer ofl~ yea', md a:count~for 86% oftot~ product ~es International ~eswere $300 milliori, up117% ver~usthesame quaffer I~ yea'. Without thel:~ne~t of--I:~ne~d~l foreign exchmge this quaffer, intern~tion~ s~eswould have grown 91% ComLined epgener~ and worldwide Arme~ s~es for the third quaffer were $1.1 I:illion, m increase of58% versus the sane quaffer la~ yea'. This increa~ was primaily driven by.~trong world worldwide Arme~ demand. Epgener~l s~eswere $626 million for thethird quaffer, m increamof 12% versusthesame qua-t~" I~ ye~ prevalent. The t hirdquaffer yea- over yea growth isprindp~tly dueto favor~e revimd es~im~tesofci~y~is deT~mde were ~illover for prior

Roger Petlmutter, Executive Vice Pre~deflt, DeveloFment md Beth 8denl:erg, Senior Vice Pre~dent of Clinic~ D evelol:rnent. In the third quaffer, our bugness continued to demonstrate grongpedorrnmce I:oth dorne~tic~ly md inte:n~tion~ly in our key ther~eutica-e~ oncelogy, infla-nm~ion md ne~hrology. In a:~tion to the commed~ progre~ wecontinueto invesl in Reseach a~d Developrnent to rnadmize our oppertunities for long-term growth throughacomlJn~tion of both interng dscevey a~d outrem_.h efforts Amgen's mm~gernent team is focumd on in~ringth~t we have ~ufficient pipeline productivity to provide ~lesmd e~rnings growth for mmy yea-s to come. The pipeline has incre~d in scope, sc,te ~nd c~lities we have ~c.o~era~ed theintroduction of new molecules into the deveiopment. Wenow ha/e ~mes~ 40develop-nent programs Wea-e pisening Amgen'sflr~t eve- pipetine review in thefir~ quaffer of next yea- to provide further in~ght into the R&D progresswehave made, a2:ltion~l details will l:eaqnounced as we get dose: to theci~e. We have ~an expmded our effortsto insuretha~ Arnge~ isthe paffner ofchoice for a::quigtion aqd licensing oRcert unities Theentireseniorrnma:Jement tea'n has~ctiveiy pafficipa~ed in three outreash deis a~d key I:iol~a-rnm_.eutical rna'kets in the U.S in thel:~ threemonthsTh~outremh clajs provide m oppartunity to pre~nt A~'s c~:~ilities and interests to S~3ior Biophammeuticat Executives to see how Amgen cm rn~imize their efforts We have pimned a~tiong da/s in 8~ Frmcimo md Europe thisyea-. Ealier thisrnonthwemnounced alicengng ~reement with a private 8~vo:~ compmy the rights to develop md commercigize anovei m,~ll moleodlefor thetre~tment of type two d~etes md certain other metabolic c~anrc~s This a:jresment isour effort to build apipeiine barn on novel therapeuticsing~ol~ rna-ket. Roger will provide enhmced details on the Re~ach ~nd Development progresswehave ~ in thepe~ quaffer. Commerdgly, Aonescontinuesto do well by penetrging the oncelogy aqd ne~rology markets Neupogen md knew I~as (ph) tha~ comtined have economic v~ue in protective md cycling use ofgrowth factors in ~ppropri~t e ri~ am~m~ntfor i~ientst hre~tenecby N e~ripinic complications Emrel will continueto exl:md it'sgrea~ broaJ use ofthe series ofregul~tory ~pprov~s in a:ldtion, our ren~lology md derrn~ology s~es forces, em_,h has new Idcet clgms to demonstr~eEmrel'sv~ue to rheumdcolo@~ aqd serry

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/ I~3'4. ~2003,an1~en Earrings g:x'~erenc~ C~ll
(:~uart ersas aresult of ou~,ont r~ct u~r~a~ion~hipwit h ,bhn~on & ,.bhnmn. Once a:j~n, #ea~ refer to our form 10-K for a more de~iled d~cu~on of this rel~ion~hip and it'siml:~ct on theourr~orted even general s~es and inscrip(ion isspill over. Even ,Jen demand in the third queer grew in the mid stngle dgit range compaed to theprior yea. With thefoll yea', we continueto ~pect good d~ygs I:~tie~nt growth in the 4%to 5%range will p'incip~ly drive even J~n s~es Worldwide Aranesp sgesin thethird qua-ter were $438 million, ver~s$114 million in the third quater la~ yea-. Thisgrowth wa~ driven by dernand worldwide, reflectingthemid yea, 2002 ~prov~ of Arane~ in the United 8~tesfor the tre~rnent of chemotherapy induced anemia and the ~trong a~:~ance of Arane~p in Europe. Third qua-ter USArane.~p ~eswere $284 million verses$77 million I~ yea-, and int~:n~tion~i ~es were up$54 million versus-S37 million versusl~ y~r. Interngion~ Aranesp s~eswere ~ded bya $19 million due to the weaker U.S dollar. Asa reg~lt of our strongfir~t threegoa'ters, we are r~stng our e~tirn~e for ~m~n~ Arm~ ~d ~ ~ ~d ~ ~torm~ ~w~ ~md 4~llion for ~ v~sthe ~ous~i~eof~w~ ~,7 md ~.9 ~llion. ~m~n~ worl~i~ N ~ md N~l~a ~ ~r the third ~ w~e ~ million, m in~ of~/o v~sthe~ ~ of the ~ior y~. U.S N~l~a~w~e ~ million in the third ~ v~s$142 ~llion for thethird ~ I~ y~. N~l~ah~ ~l~e in ~n Euro~ ~untri~for a ~o~ ~iod, md int~n~ion~ ~ in the third ~ w~e ~ million. Worl~i~ N~ ~ in the third ~ w~e ~ million, a~i~t ~line v~sthethird ~ the ~ior y~, r~ing U.S ~nv~on to N~l~a o~ ~ N~ ~ ~o~h in int~n~ion~ ~kets On a geographic I~is, thirdquarter N~pogen s~eswere $228 million in theU.S ver~us$241 last yea, and intern~tion~ were $103 million ver~JS $91 million I~ yea'. The growth in intern~ion~ Neupogen s~esw~s driven by currency exchange r~tes Aswe pointed out in the ~econd quarter conferencecgl, Neupog~n conver~onto N eulas[~hasslowed in theU.S George will cover thea~tion~ growth opportunitiesfor the franchi~. We cont inue~o believe combined N eupogen N eula~as~eswill bein therange of $2.4 to $2.6 billion for 2003. Eml~~ ~les were $342 million in the third quarter, a$116% increa~ over thethirdquarter of20O2 ~lesrep~rtedbyAmgen of $158 million. Prior yea s~eswere impacted by~upply ~hortagesof emt:rg and to a le~a~- extent reflect two weeks fewer ~s asa result oftheimmuneasqui~tion clo~d~e of July 151a~ year.

FINAL

TRANSCRIPT

~es for thecurrent yea" were driven bydemmd, fueed by new p~tientsin bath rh~rr~ology and dermatology. For 2003, we continue to ~poct em~e~ s~es to be in the range of $1.2 and $1.4 billion. With threequa-tersof theyea now c0mplete, wefe~ weare in apo,,Jtion to moredo~lypredct 2336 product s~es Asa re~ult, weare na-rowing the range ofour 2003 worldwide product ~les guidmce, to between $7.6 and $7.9 Lillion versusthe previous range of $7.5 to 8 billion. Tot~ revenueguidmce isg~ revival to a range of $8.1 I:illion, and $8.4 Lillion ver~usthe previous range of betwem $8 and $8.5 billion. Turning to ~ome expense item& which I'll ~se ~uss on an ~u~ed be~s for bath periods Cog of s~es increa~d to $336 million in the third qua~er of 20~, from $201 million in the coml:e-~le quart~ of 2002~ primarily due to increa~d s~es Cost of~les asa i:~centage of~es incr~ed from 14.9% in thethird quarter of 2002 to 1&1% in thethird quater of 2303, reflecting agre~ter portion ofem~, which ha~ higher manufacturing costsmd roy~tiesin theproduct sgesmix. R&D expenses for thethird quarter were $~0 million, verses $304 million in thethirdquater of 2002. Thisincrea~-=w~sprirnarily due to ad~tion~ R&D heal count,increa~d dini~ tri~ and dinicg mmufa~udng a~tivity aswefl a~higher licenstng and milestone f~esa~d~ted with collai:;orgions ~-_.-&A for the third quater were $479 million compared to $977 million inthe third goarter ofL::~02. Thisincrea~ was prima-ily dueto ~Jpport ofeml:re~, thewide profit ~areand a higher s~a'f rela~ed expens~ to ~pport new products and competitive makefs The fourth qua't~s historic~ly isthe lowest mar~n qJarter ofthe yea- and thisyear will beno c~fferent. Thefourthquart~stra:ltion~ly thehighe~ts~ncfng qua-ter due to norrr~ s~ong st:endng pe[ternswhich occur ~s~penc~ng on dscre~iona'y progra'ns are heid until thel~tter pa~ ofthe yea" as#armed s~es targets are rn~. Adcition~t promotiong a~tivities concentrated in the fourth qua-ter are a~ocia~edwith m~jor medcg cenferences, indu~ng ECR, and a~. Thisyear in thefourth quarter, an a~tion~ $86.5 million up front l:~yrnent a~oci~ted with theliomgng ofbetrum will be expen~edin R&D impacting betha:~iu-~tedand C-AAP earnings Asa result wea'e revi~ng ~u~ted oper~ing expen~guidance for 2003 to arange of $4.7 to 4.9 ~llion from thepreviousrange of between $4.6 and 4.8 billion. Wecontinueto expect a:iu~ted EPSto be in therange of $1.85 to $1.~5 per sha-e for 2333. On a GAAP be~s, EPS was 46cents per shae in the third quarter of 2003. Wel~ievethg a:~ustedearningsprovide

©2003 O~E~'~om, IncF~publlshedwith p~n'ni~on.ikb part of this public, ion may bereproduced ortra~smitted in aly form orby a~y me~s without the pdor written consent of O~3Noorn,

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/~ J3~1 - Q32003/~gen Earr~rgs ~re~ceQ~ll

FINAL

TRANSCRIPT

recognize th:~ta reve~sth~t theearnest oncologylsunch in Europe hasbeen su!~ementay inforrm-tion to investors Wede the rnos[ succese~l Isunch in this ma-ket during the I~ ten importmce of earnings computed in m, cordmce with GAAP years Turningto even Jen, agdn thisisU.S only, thecoreep md aswe do every qua-ter, weprovide afull reconcilidion of 3~n t:udnessrern~ins strongdriven primaily by p~tient growth. GAAP ver~usa:~usted EPS in the pressreie~e is~Jed t ocla/and Wecontinue towork with our cus~or'ner, ~igning anemia it's~i~o posted on our web dte~ manal~-nent gods for theb~ outcomesfor p~tients Next is Neupogen and Neula~a Neupogaq and Neula~acontinueto In the third quarter, werepurcha~ed 6:~roxin~ety 5million pedorm wall in thechemotherapy induced neuro penia maket. ~haresspendng $323 million to do se. Through ninemonths, weha~e repurcha~d ~aproxirngeiy 23million sharesa[ a cosl Bythe end of 2006, wewill more thin haze doubled our of $1.2 billion. Third qua-ter c~pitd exponc~tures were $388 f~anchi~ ~es from 2001 to over $2blllion in the U .S ~ven million versus $209 million in the third qua-ter lat yea. This ther~d conver~on of N eupogen to Neula~aand thetougher increase was prind~ly ret~ed to the Puerto Rican t:e~ine compeisens level franchise revenue growth will mmuf~cturing expmdon, thebJildng of our SEttle re~e~ch eventu~ly dow in the U.S going forwad. 8gniflcaqt maket centerand thecontinuedcon~tructionof thene~v Rhodeldmd growth oppartunitiesstill expense asevidenced bythe fact tha~ rn,muf'~turing plant. Our cash in ma-ketdde securitieswere only g~out athird of the i:~tients g ri~ for knew Tro penia $5~11ion ~ theendofthethirdqaater. We'll provide finand~l (~) receive Neupogen orNeula~a asflrd cycle ther~py. In guiclmce for 2034 on a conference call in December, and Europe, wehaze now I~unched Neul~ain gl countriese~cept a3:ltiond details will be p-ovidod aswe gel doserto that c~te. Portug& Belgium md It~y and s~es are on trask. Unidentified Thinks Richad. Now C-eorgewill provide amarketing up~e for thequ~er. Georg& Turningto emBro in North America While the8%yea- over yea growth benefited 1~ yea, weview the 12% sequential growth for thequater asasolidtrend. Ernbrei isonceag~n the lea:ing tee'nsofinhibltorsin termsof numbersin sort of virus The outs[andng resultsofthe temp of study such areinforce the profile. Just asa reminder ofthe tempo study involved emBro in comL:in~ion with methotrexge with RA's Roger will haze afew words itto saj g~out thg and thiswill be highlighted gACR. During thethird qua-ter bylg:~ was expanded to include improved phygcg function, inhiLition of progresdon osgructur~ da'na:je and so (inaJdble) riders and mog r(~_,entlyapprov~ for onceweetdy doing in ~1 peidents Down the rom~, of course, isthe opportunity to s~-ve psoriaJs

Geo~e Morrow - Arrgm Inc- EVP, Gldoal Cofrnadal OpeC/ms Thinks Kevin. I'll stat with theeane~t nephrologypedorrnmce in the U.S Wecontinueto ggn share in CKD or prec~ygs rr~ket due to theiongerdo~ng intervg. I ncrea~ngy, however, our focusison expandng thismaket where le~than 20%of anemic CKD petients receive an a:jent. Our anemia counts ca-n~gn, for exa'nple, highlights the clini~ dgnific,mce of anemia and it'simport ance of ri~k factor, relative to wall known f~ctorssuch ashypedendon, d~tes md list ecidemia Next isearne~ oncologyin theU.S, herewecontinueto g~n rnaket sha'e and are encouragedth~t rnmy of t hemtion'~ages[ and mog: presti#ouscmcercentershaze ~ectedAranesp ;sthe preferred a:jent a~d a-e doing so every week. Introductionin the third quater was prefilled sjringe for Aranesp hasprovided another aea for it in thismarket. Weare not yet ~igied with thema'ket ~arein oncology, weha/e focu,~ed more resources on r~idng at~a-eneas a'nong our custornersthm only 40% of chemo induced anemia pe~ients currently receive an orethropaJtic agent. Next isAranesp EU. Arane~ continuesto ~n sha'e in ~1 Europem rnakets powered bythe Oncology indcgion. IMS

Along the~e lineswe haze h~d an exceptional re~3nse to the pe3ria~s connection educgiond DTC caml:~ign, which you ma/haze ~en on TV. Thiswill help usknowwho to target ~t laJnch. Fin~ly, I wanted to condudewith abrief word gout thepre#r~tionsfor thecynic~ set laJnch. We betieveit provides anovet and effective wa/ totre~t seconda-y (in~udble) perithyroidarn. Our prima-y ch~lengocommerd~ly will beto fadlitge reimbursement and covera3e for abroa:~ group of p~ients

Kevin S/hater -Arrg~ /nc- Ch~Tm~ andCEO Now, I will provide R&D upda[e for thequarter.

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FINAL
George Morrow - Amgm Inc- EVP, GId~ Co'rrnad,~ Ope-aims Thanks, Kevin. Let rnehighlight key eventsth~ occurred in thethird quato, in development md re~l~torya~rs AsKevin mentionedwe submitted anew Pug ~ppiic~tion with theFDA, reeking ~pprov~ ofcynic~ ml with the treatment ofprimay aqd mconde-y hypothyroio~rn. Thisisthecompmy'sfirsl ~n~l molecule tho.~mJtic a~d re~re~eflts ~n importalt novel for Amgen. Weae proudofthec~ta for thefiling. Much ofwhich will be premnted ~t Amo.icm ~odety of nel~rology b~ng held in Sm Diego in N ovembo, md wea-e hopeful th~ the a~qcy will review our ~ppiicaUon on a priority basis i'm ~o piea~d to renounce that weha~e filed for ~crov~ ofcynicg m( in Europe a~well. On the regul~ory front, wejusi mnouneed approv~ oftheonceweekJy chang regimo~ for ernbrel, which George mentioned Thisoff~s enhmced re.teens for i~ieflts with rheurn~olo~c d~ th~ ~ ~t Pom the~ ~ ofthe th~. The~ing thisw~d ~11 ~ovi~ a~rum for r~ of im~t n~ ~ it ~th theu~of ~ ~th ~hotr~e ~th~ ~th ~ly rh~oid ~hritis In thisgu~, ~4 of ~i~ts tr~ the ~th the mm~n~ion th~, ~im~ no r~o~ic ~o~on in oney~ ~m~ with ~/oof ~i~tstr~ ~th ~g gonemd 6#/o of~imts tr~ ~th ~hotr~e ~one. This isthe ho~ th~ the joint ~rudion ~th ~9ow~ ~ #ovi~ th~ ~o~i~e ~ ~ th~ is~ini~ Am~ is~ ~ov~ for tr~tofm@o~n~o@s And ~sarnemsofimproving ~y~c~ functionin l~ientswith RA in 41, 80~b~rmts inducing 21 pre~nt~tions in for thewill pe pre~nted ~ the ~hil~tors inducing their le~d compound which isnow in pha~ two tri~s for the treatment of type I I d~lee md red,ted metabolic d~or~s Weg~ined a:r_.~mto a pha~ 2, I'll 15 inhi~tor progra'n throu~ alicen~ng ~l~e~nent with Jeff med. Themnew p-ogra'ns a:Jd a~ftion~ sirengthto ourwhole lettingvai~le rebus/pipeline. Ind~d, in thethird qualo, we introduced three molecules into humm tri~ls md ~o b~jm dinicg siudes of AMG 162, which isa pot~qti~l treatment for both met~:~lic bone d~ md lOS/reenop~Js~ osieclOrogsin J~l~n. AsKevin incic~ted, weha~e ~lmosi 40mtive development progra'ns today. Included inthe group a-e molecules that improved oncology supportive c~re, ta'geted tho.~l:~' ofn~ligemcy, petto, p~n control, improved rnm~gement of infla~tory dma~, immolation of~ le~t ~me degeno.~tive

TRANSCRIPT

clma~s, control ofpene turnovo, md improved management of met~olic dsiurbmoes Wewill review thepipe~ine in gre~t o. det~l g are~each md develol:ment confo.ence, which wepim to hold in the firs/quato" of next year. George Morrow -Amen lnc- EVP, GId~ Cmrnad~l Opea#ms Thinks, Roger. Now we'll t~<e your que~ions

Operator [opergor insiructions] Your firs/re~onmisfrom Robert Golc~m with Buckin~an Re~each. Robert Goldman - Buo~ngham Re~ar~ - Anely.~ Thank you. I'm cynic~ ~, acouple ofthings Firg, I'm jusi curiousifyou ha~e ~<ed theFDA ~pecific~ly for aprevious d~y~sincic~ion. ~cond,you rrmntioned~bout re~mburmm~flt. Asm org, doyou holdmy hopeth~t in f'~'t, Mec~c~e will reimburm theciug?And fln~lly, could you #ve usmme help on howwemi~ht qumti~ thedolla- ma-ket ~ze. Think you.

Kevin S~narer - Arncjm /nc- Ch~rm~ a-idCEO Firs/of~l, with re~p~t to our filing for the~gency, thefiling isfor mconda-y hypo.l:e-ghyroidi~n, which isof course in a~od~ionwith ren~l d~md ~dcltion~ly upc~le and prirnay md hyperpe-~hyroidi~n. Th~t'swh~ the filing iscirected towa'de It indudesclata primaily from theclaiy~is community. But it's~econda3, thyroidsm a~:)ci~ted with ren~ dma~e. Roger Pedmutter - Arrgm l r'~.- EVP, Re~'] a~d De/dqarn~ Reg~cing Medca-e relm~rse relmburmrneflt, tho.ewill be no relm~r~rnent ~t launch. But pat D Mecica-e, which is ~ ofthe mecicae reform, ob~ou~y, will provide al:ene~t ho.eth~t I thinkwill re~ly help usct-ive thisproduct. Weden't qumtify ma-ket ~zeefor people.

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Case 1:05-cv-12237-WGY

Document 54-15

Filed 04/25/2006

Page 8 of 15

IAM(~ - ~2003,~gen Earrir~s O:~ferenceO~ll
Robert Goldman -B~ing'k~rn ~e~tct/- Ar~yst OK. Thmk you. Operator Your next question isfrom Eric Schmitt with SG. Cowm. Edc Schmitt -S~ G. Ccv,~ -Analyst Good a~ernoon. Congratson a nice ea-nings period. Let me a~ thetwo o~iousque~ionsboth concerningroach and whst your thought~e first on theS~-a product md theitspotenti~ te compete with you in the U.S And mcond, on the study coming out ofde Imce I~ we~ on -whst you a-e gtea:ing md conjunctionwith h~ aqd neck ra~o therapy. Kevin Si'~arer -Arrgm /nc- Ch~'rrn~ endCEO Weha~e ~o~ ~ut thero~ ~o~d ~g of you h~e ~r along ti~. Wet~e ro~ ~iougy. There a~ ~m~y, tou~ ~m~itors O~iou~y, we're not ~ing to ~m~t on our ~r~, ~t we're ~nfi~t in ou~ ~mts We'll ~md th~ ~rougy. Weh~e hi~ori~ly, ~will ~n, mdt think th~ the-ar~ro-#~ the ~i~ zound theworld is~ I~, ~-~o~ng md v~u~e, th~ we.ll ~ ~ti~ly ~r ~ one--It on th~ ~m~i~ or moth~om ~ ~d thisisthele~. Aswe ~ upTKT, we'll ~ r~ for th~ ifth~'s~ it t~ All ofth~ Ro~-I'll I~ Rotor Bgh ~m~t on th~te ~icle on ro~h's ~o~. Belh Seidenberg - Arrg~ Inc- SVP, Cliniml De,,,dq~nmt Yes Let me just saj afew words gout the study that wa~ published in lancett& I don't intend to go throu~ adetgled critique ofthe study. There will bemmy, many, mmy publicalions, I ~u~ect goingforwa-d. Fir~ of~t, it's important tonote that there isa very strong preLynn ~ rationge for I:~ieving thatgJrviv~ might a~tu~ly beimproved or that cmc~ therapy would be rnore eff~tive if m~mia were trested This r~ates to the funda-nentg prol~ern ofmoxic orhydoxic timuel~ng le~s ~en~tive toa~ative therapy. A vaiety ofclinic~ studiesha~e dsmonslrstedthisover theyeas In a:t:ltion there'salot ofclinic~ d~ta that ~dpgorts theview that trestment with m imPoe tin to improve anemia will antu~ly regJIt in a behest. First of gl, there'soverwhe~ming data a~c)ciated with thequ~ity of life.

FINAL

TRANSCRIPT

I think everyone a~ees th~ qugity oflife isimproved when thean~-niathat istypic2,1y encounterecin thecontextof therapy for cmcer istr~:ed. But mconcly, there is~o ciinic~ d~a which wa~ cited by the H an ky a-tide published in Lancette la~ week, sJpportingtheview thereis~t lea~ atrend and in ~me ca~sag~nificant improvement in sJrviv~ in studes ofimPoe tinsthst ha/e been provided in thecont~xt of chernotherai:~y or chemother~/, ra:io therapy. In this study, it'simportmt to eml~a~ze whst a:~u~ly wa~ found. That is, ifyou look in paticula at the study ~t tho~e incividu~s who a-e tre~ed per protocol, with correct ra:io therapy, thereisno cifference in termsof~rviv~l, with re~gect to tho~e who reogved the poetin beta in this ca~e and tho~ who cid not. Therea'eotherc~Iferences in termsof~i~bility criteria There were p~tient mix im~ances and therewere ava-iety ofother trig reiated dfficulti~s md interpreting thes~udy. It'scifficolt tolook stthe study pa-ticulaly inthe face of~l theprior evidsnce md condudeanything sul~ta~tiw Indeed, theaathors ofthe study were very caefiJI to note thai the patenti~l limitstionsoftheir m~y'&s ~, I think fa- f~om b~ng afire ba~d on pu~ication here, weshould put it in itsappropriate context and sa!, you know, we really don't know whether tre~ment of patients with rr~iignancy with an (in~db~e) in improve survive. Thewe~ght ofevict~3ce, I think isthg: there'sapotenti~ for behest, and it is~o po~eth~: unO~rstand~omedrcumstances tha~ onewon't methst I:en~it, butwe cert~nly cmnotcondude anythingon thel:~s ofthe ~ing~etrig. Eric Schmitt. S G. Co4an - Analyst And a~a follow-up, could you comment on what percent of Aranesp bus might bein ara:lation therapy only tre~rnent rotting?

George Morrow -Arran Inc- EVP, GId:~l Ccrm-edal Ope-ab'ms Asfa- a~we know, noneincic~ion that weha~e. It'snota rna-ket that wehwe re~ly looked at. Edc Schmitt - S~ G. C~n - Analyst Thinks

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Case 1:05-cv-12237-WGY

Document 54-15

Filed 04/25/2006

Page 9 of 15

FINAL
I ,~-C~2003.~gen ~rningsO~renceC~ll
Oper~or Your n~ ~ion isffom M~k ~om~m with

TRANSCRIPT

George Morrow - Am2~ Inc- EVP, Gldo~ Cmrn~al Yes, Wea'e just notgoing to provide m upcl~te on that. Ma~k Schoenebaum - Pipe- Jat~y- Ar~yst M ak .Schoenebaum - Pipe Jaffray - Ar~yst Hello, guys Con~tul~tions Bdorel a~ my que~tionto follow up, I'd like to congratulate my forrne~- bo~, M~tt Gell~ on his recent mait~ enge~ement. I'dthinkev~ryonewould beh~w to he~ the. I found thepreviousque~tion~bout cynic~ 9~ in thepred~ly~s alittle vague. Will you or will you not ~y for ala~ that includes the pred~y~s for example the wa/ the indication s~ction real on the Arme~p I~. The follow-up que~ion, could you comment on the timing of the Arme~p versus prokit heal to heal ~udy th~ isb~ng done out of U CLA. OK. Thmksvery much. Ope~tor Your next que~ion isfrom Ma/Kin Ho with Goldmm Sm..hs May Kin Ho - Gdctren Sa~- Ardyst H~lo, Ca~ you comrnenton alittle~t ~:~out wh~'sh~ening in Washington?l know therehasbeen alot of negotiation on theAWE forum md othe~thingsth~e. Andthen ~o, Roger, ma!be you cm co~t ~out the video vitrum molecule, because I und~tmd th~t'savery ~tra:tive p~thwaj. Cm you tell uswhy you ~re exalted about it? George Morrow - Amgm Inc- EVP, Gldo~ CoTrn~ O/~a~'ms The~tu~tion in Wa~ingtonrnay ~ isfluid. Therea-e ~,'t ivities in a va-iety of forums, ~xecutive md lec~tive. You prob~y know byrea:tng thepre~s~:out a~much a~we do. Inthe legid~tive a'ea it'sapretty open proc~smd th~e's~va-iety of thingsin plaj. We~us~ect that thel311 will ~ Wehope it will. It'sfa from ~ure. Ifit cbes, I think thg'sgoing to begood for thecountry, md AWP reform ofone kind or mother will prol:~c~y h~pden asl:~t ofit. Wef~or wh~t's in the ~n~te verdon md hop~ that will h~i:gen. With re~ec~ to the ex~utive b-inch, CMS iscondd~ing the rule, thisy~r'srule rega-dng thehos~td outl:~tient ~ctorwith respect to (inaJdble). And Proa-it. We ha/e hal very complete, lengthy, inten~, dense d~cu~onswith them over the year. The pe~ yea on this subject. We're confident it was ag~od ddogue, b Jr wejud don't a~a rn~t~ ofcour~ predct wh~ thegevernment isg~ing to do on my ~eelflc issue, but weald ha/e agood d~ogu~ I'll let Rog~ comment on thebea beta molecule md our int~e~.

George Morrow - Arn2m Inc- EVP, GId:~ C~al Ofx~t~ms S~, ju~ to be d~r on the i~ue ofcynic~ ~et the I~el is, of course, for thetre~tment of~_,onda-y hyperpa'~hyroidi~rn in ~d~ion with r~n~ clsea~. The-e ae d~ta in the I~el for I:~ieotswith end s~ger~on;:l cl~md i~ientswith chronic rea~n~l in~uffidency. At the end ofthe ~', wh~t the~gency decides interms ofthe inclc~tion isgeing tobe pat of a negotiation proce~ I c,:-nnot tell wh~t you thel~ will look like e.x,~--tly. I'm ~rry, theque~ionwith re~ped to Dr. Garb/ (l~)a~d the ongeing ~udy. Mark Schoenebaum - ,q~oe" JalTTay- Analyst Ye~h, could you comment on the timing of how that tri~ is progr~ng md when you rnaj ~tugly George Morrow You know, wea-e not providng upd~eson aquatedy b~is on th~etrigs Asc~a becomesa/~il~e, we try to make everybody a,vae ofth~;n a~d rmke ~re that everyone und~-~tmdswherewea'e. Wea'e not pre~a'ed to provide ~n up~e on that.

Mark Schoeoebaum - F~pe Jaffray- Ar~y~ ~ould webe expectingd~a ~tA~e. lsth~t ~methingth~t couldyou m~er for us?

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Case 1:05-cv-12237-WGY

Document 54-15

Filed 04/25/2006

Page 10 of 15

FINAL
Rog~edmutter -Ar~;~ EVF~ev~cprr~t MaJ kin, it isindesd m extremely intere~ingl:~thwaj. During the la~ sever~i yeas, infor~ion h~ ~mul~ ~om a num~ of~ic r~sind~ing thg the~nv~gon of in~ive ~oid hor~n~ ~ue ~rd koi~ (~) to ~ive hor~n~r~n the~i~ ti~eto ~ ~ve~t. Th~'s~g~ ~ m~ 11 ~a H~ 1. I nno~ion of a 11 ~a H~ 1 It is~ to~ ~d~ ~th a~ in the~i~ ~mreto ~ive#ue ~u~oid md mh~ inulin ~gtMty ~d ~ a~iey of ~d~ ~son oth~ ~lic ~s Tho~ ~nd ofo~ions h~e ~ ~n~rg~ ~ini~ly in ro~t ~s We~m#y ~n't ~ow ~eh~ ornot the ~ thing will ~o~ in hu~s B~ on our~y~s of thein#r~ion thg ~a V~ trum h~ ~umul~ to thg ~int, ~d k~ in mind th~h~ theo~unityto ~u~ifl~t num~ of~#e ~ to thgrl~ ~l~le, we~i~e th~e'~r~ o~dunityh~e to hwe a~d~ ~ ~th in ty~ to d~ md ~ in the ~lic ~o~ th~ ~e ~dg~ ~th inulin r~dm~.

TRANSCRIPT

theyha~e shown awillin~ess in the pe~ to be a~gre~ve. ~ who knows May Kin Ho- Gdckn~ Sa:~-Andyst Th~nk you.

Operalor Your next question isfrom Craig F~ker with Lehmm Brothers Craig Parker - Ld'rn,~ Brcthes - Analyst C~od afternoon. I wonder if George, you couldfirst comment on thecontributionto U.S AeronaJt s~es from theoncology ma'ket versusCKD? George Morrow - Arrgm Inc- EVP, Gldod CoTrre~ We don't ~ive ~pedlic numbers in f-~ct, t don't ha~e one in my mind. Theva~ rn~iority of~es ae from theoncology rna-ket. Craig Parker - Ld~man B~hes - Analyst

May Kin Ho- Gd~ Sa:~- Analyst Hello?

Roger Pedmutter - Amg~ I nc- EVP, Reverb a~ De/dqom~ Weca~ hea you.

May Kin Ho- Gdctn~ Sad~- Analyst Certainly a~JII hasinclcd:ed theydon't thinkthat CMS ha~ t hea~thorityto do thechmges Anddo you think that theCMS will ~-'tuaily is~etherulesat thel:eg~nning of Novemi:e¢? Roger P~lmutter - A n!~ I nc- EV P, R em~,'d] ard D ~d q~n~ Therulesfor what, Maj Kin?

May Kin Ho- Gdcl-nan Sad'~*Andyst Hi~or,jofTo go I:~ic~ly chmge theAWP sjatem? Roger Pedmutter - Arrgm Inc- EVP, Re~a~and De/dq~ma~t I don't -- I don't ha/e apoint ofview. I will s~j CMS ism agency with broal aJthority, md they'rewriting thecheck, md

Okaj. And mcondque~ion ison the bio-- the court sole inhibitor. That'sre~ly aatratedc que~ion for Kevin, which is isthat m aea where you would contern~ate bullring avery lage s~es force, if you hal a-- m ~ctive molecule in type two ci~etcs Ld: rnetryto a~ertheque,~tionwithin thequ~tion. Our ~ratecjy isto m~k molecule molecules that will tredc grievousillnessthat will rn~e adraT~ic ciffer~ce to pe~ieqts thatwill becommerd~ly su~lmd wew~ll do what it t~es to b-ing tho~kind ofmoleculesto maket. If in fact wehwe moleculesthat ha~e thomcha-m'teri~icsthat require alage s~es forceto b'ingthemto makel, we'll do it. That obviouslywould need to be contained within m economic malygs tha~ ~d it w~s worth it, but if you wmted to h~ludmte alittle lit, aqd irn~ne that thismoleculewas agreat I::ig sdcce~which at this ealy ~t~e would be a h~lludnation pha~e, ¢a'ly pha~ molecule, theinve~ment would ~ure beworth it. We'regoing to inve~ a~ns~ the molecule'schaa:teriatics, md go where thosat~ke us Now, you know, I'm not s~jing that wewoulcWt con~der mother molecules, patnering with sornet:ody in c~stribution, but we're going to do what it t~kes for the molecule to be succesdul.

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Case 1:05-cv-12237-WGY

Document 54-15

Filed 04/25/2006

Page 11 of 15

I

FINAL

TRANSCRIPT
J

,~IGN- ~2003,~gen Brrings g)nference C~ll
,t~nifer Cheo-RBC C,Idtd Mazk~ts- Analyst

Craig Parker - Ld'~'n~ B'dhes - Analyd OK. C~eg. Appred~e your candor on the. Oper~or Your next que~ion isfrom Jennifer Chso with RBC C~t~ M a-ket s Jl~nifer Chao - RBC C~dtd Makds - Analyst Thanks for t~ng the question, just acouple here. First on Neupogen Nedla~ta You can rr~ ~ive asyou senseofwh~t portion of Neola~a during thequater wa~ due to Neupogen conversion, and whether we're 8~eing inventories rr~nt~ned ~t norrn~ levetsor if we're seeingmy c~sequilil:rium there. Thesecondisif you could just ~ve usm upd~e on the Puerto Rico manufacturing expangon md ifwe're i:rogress ahead of schedule and when we ahould expect to ~e n~eri~l ta~ benelitsthere.

Thd:'shetpful. One follow-up on the PuertoRico ~ite, ~hould we expect to ~eemy further a::celer~tion herein the next two yea-s asyou wrap upon exl:~n~Jon?

George Morrow - Arr~m Inc- EVP, Gldod CoTrredal Of:e-a~ms
No, I think wehave (l~o~::J tha~ a~we open upbulk manufa::turing for someof our productsduwn in Puedo Rico, I~ter in the deo,~e, our ta~ r~tewill dedine further. We ha,,en't ~d to exaz:tly whst, but we ha/e incica~ed that that investment will m~e pretty goodfinand~ sen~. Jennifer Cheo - RBC C~oit~ Matkds - Analyst OK. Thanks Operator

George Morrow -Atrgm Inc- EVP, GId:~ Co'rn'~dd Opeatims
Richa-d, why don't you t~tk #cout the ta< consequencesof Puerto Rico and George, you can hande the Neupogen, Neula~a Richard Nanula -Arn2m Inc- EVP, Fina"~Strategi and CoTnt#mb'ms andCFO Weae ~tready sedng sob~tanti~t ta< consequence from the increasing activities in Puerto Rico. We ha~e formul~ion flni~ and fill in Puerto Rico now, the t~< rste I think h~s declined sever~t pointsin the la~ sever~ yea-sand apoint-and-a-ha If in fat in 2003. Inventoryisl:~ck to I thinkquestion numbertwo or~t norm2, leve~sfor gl ofthe products

Thenext que~ion isfrom Bise Wang with Smith Ba-ney.

Eliso Wang - ,_£-n'th Bane! - Andy.~ Think you, I just wanted tofollow upon the ABX/EC~ progran for Roger, a~to wh~t ae thenext stepsth~t will be t~en g~ven the re~nement in the agreement. Clea-ly, you're now in full control of deve~ol:rnant. Wh~t a-e the next stepein termsof ~udes th~t we ma! expect in terms of timing a~wefl ~sdedgn? George Morrow - Amg~ Inc- EVP, Gldoal Co'nredd Opea~ims Heflo, Bi~ I jus~ want toeml~ze thai there~son for this dail]c~tion ofthe~reement isthst R~, Lithyand I of 9enex h~d a~eed, regly right from the beginning that the product must absolutely comefirst and wedaified thisagresment becm~ewewsoted to rr~e~ureth~t we could acceter~e move of this molecule to the ma-ke~pl~ce. We ha~e been a~tive~y in d~m~u~onswith theagency g~out information thst would be required, ultin~ety, for afiling in a cold rect~ cancer ~ting and we a-e pursuing thg ~swefl a~pursuing other incicahons for thismolesule. Asl inclc~ted, wea-e quite plea~d thusfa" with theresultswith respect to ~etyand certainly getting ephie Ca~e d~ta some ofwhich were presented ~t va~_,o. Wea-e ~ccumulahng mored~[a in ~1 ofthe~ttings

George Morrow - Amgm Inc- EVP, Gldoal CoTn'sdd OpeCms OK. And theNeupogen, Neula~aconver.~ion,the dala on that isfrom an aJcit, and th~ lags by~ leasi: aqua-te{, ifnot alittle bit more, so I wouldn't ha/e any d~ta on that for the third quater, and there ~ re~ly no a;~red~t~e change in inventory in thethird quater.

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Case 1:05-cv-12237-WGY

Document 54-15

Filed 04/25/2006

Page 12 of 15

I,~Ct~- Q32003/~gen 5arrirgs&~nferenmCall
Eli83 Wang - Smth Bane! - Analyst OK. Then, afollow-up for George~ Could you ~ to the competitive environrne~qt right now in terms ofwhat you're 83eing J& Jdoing in the EPO maket and ~so on the rheum~oid athritis aea what you a-e s~eing on the Abi33tt front md what kind ofstegsa-e you t~king to countermt that? George Morrow - Arr~Tn Inc- EVP, Gldaal Corrred~ OpeCms On theArmee# front, J& Jha~been more a:jgre~ve with their contracting. I gue~ our portion isa~ follows --we ha/e positioned thisproduct a~abetter product by virtue oftheevery other week dosing and very slightly lesse<pensive. That's a position in the marketl~ace thst ha~driven our succe~and will continueto drive our Sdcce~ I t'sworking. We're not going to change that positioning. We need to get -- g~n criti~ ma~ md ma-ket sha-e E]i83. Onceweg~n critic~ ma-ket ~hae, then wecm invest moremoney in ~rowing the ma'ket#me md we don't fee~ we're thereyet, but I do b~ieve there'~lenty of room for both productsto grow ~iven the growth potenti~ ofthis maket. Recj~dng Abbott'sHUMYRA product, it ha~ area~on#ole footholdin the ma-ketplme, it'spretty muchwhat wel~edcted acouple ofyeas ago when wehaJ theroad how and t~ked with the Immunex m_xTJigtion. I think theflrst step towac~ gottingonceweekJy dosing will do alot to neutr~lizetheonly advanta:je they ha~e in themaket right now ismoreconvenient cbsing, Westill thinkweha~e thehigh 9"oundin termsofthe ef~cmy and theternpo there, oncea~n isre~ly un ~Jrpa~eed. We're certainly driving that had in the ma-ketpla~e, becaJ~eit isfirst md foremost, an e~ driven ma-ket. Operalor Your next pueslcion isfrom Mike king with Bmc of America ~_.urities

FINAL

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George Morrow . Arrg~n Inc- EVP, Gldo~ Ccrrrna~ia~ O/:eat~'ms
I'm ~orry, you're interested in ~urviv~ atuciesin Mike king - Banc dArn~i(a Se~'#'e~ -Analyst Treat study. George Morrow - Antgm Inc- EVP, Glda~ Co-fm~at Opea~ms Thetre~t study, which isa sludyofvenj Iongduration, asyou know. And 83, Mike, I don't think there'snot my paticulainformation I cm ~ve you gout that. And with re~13ect to a~, you know, wehave ala-ge number ofpresentations~ a~h. I don't wmt to compromise the g3~ract puLtic~ions that will t~e pl~e. I cm't put mys~f in that position, but .~urpris~d it to saJ, we're goingto be extremeiy active at a~h in December. M i ke king - B~nc dArn~a Se~'ties - Analyst Think you, Operator Your next question isfrom Matt Ge~ler with CIBC world ma-kets Matt Geiler - CIBC Wold Markets- Analyst Thank you. Coupe of duestions Can you t~k alittle bit #out the-- why istheN eupogen N eul~a conversion~owed down, istheremythingthat youcm do #out it. On thepipe~ine front, can t~lk #out OPG, KGF, DGXlF mdwhat progremyou a-e mg4ng there

George Morrow - Arrgm Inc- EVP, GId~ CoTrn~al Opea~ims 8a-ting with theNeupogen, Neula~aconversion. if you look at the clinics our conversion rate isvery, very high md ~o it's just amatter of there's just not that much opportunitythere. The peol~e who haven't converted prol:~oly ha~e adfferent point of view andwecontinueto work on them.In theho~t~ 9~=ctor, there'salot of less--les6 lower u830f Neupogen in terms ofda/s and that becomesalittle bit hade to convert,but over time, I thinkit'sjust arr~tter ofchipping aNaj. Wethink#out

Mike king - Ba~c dArn~ka Se~itJes - An~yst Think you for taking my question. Most ofmy questionsha/e ~ ms, vered I wondered ifwe could get astatus on the sdrviv~ studesin CKD, md would weha~e in presmtations ofnotethat you would want to draN our attention to at a~?

@2003 OCSNcom. IncFl~ublishedwith perrnission.N3pa't ofthispublica[ionmaybereproduced ortFan,stnitted inmy formorbya3ymeeqswithoul lheprior wdttm consentofC£~Ncom, Inc,

Case 1:05-cv-12237-WGY

Document 54-15

Filed 04/25/2006

Page 13 of 15

Il~,1(~- Q32003 i~gen EarringsGmferen~eeall
theh~f oftheNeubegen bu~ine~toda! issJ~.ecti~e to being oonverted over time. The~ a'e peopie that prob~dy ha~e a ~lfferent point ofview aqd prol:~ly useNeupogen alittle le~ a~re~ive~y in termsofnuml:e- ofd~s

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orgmiz~ionsae gettingconceneddcout litergiy dour:ling the cost. They're ~tting anme re~rictionson the product, but otherwi~ Ithink dock doctorsae s~ill very much inthe experimentg rnodewith HHUMIRA.

Roger Pedmutter - Am~m I nc- EVP, Re~a~ ard De./dq~n'~t And Mat it'sRog~, with re~pe~ tothe pipeline iseJ~ a~l inclceted in theOPG ~..ce~ a'~ AMG 162, we'recontinuing to study it everywhere, r~ly, md we recently begse studesin J~pm for KGI:, aswe incic~ed before. It'sour intentionto file for the tred~rnent ofchernothe'~:~y, ra:io a'ld chemotherapy induced leukocytes in the immunenlogic tra~spimt sd:ting, which wea-e ontr~ck for next year. For GDNF, weae conductingara'~domized, ablinded ~udyth~t eng~lesustotetl precisely wha~ the effect of C_.4~NF will be. I ha~e ~ encoura:jedby the enrollmentin thestudy, bec3Jseof themt ure of the intervention, we a'e exl::ecting thestudy to t~:e anrne time to enroll, but dea-ly thedema~d in the Pa-kinann'sd~ popul~ion ishig~ and enrollment hasgoneextrernely wetl.

Richard Nmula -Amgm Inc- EVP, Finar~Strdez_y and Corm~imbms aod CFO Dennis, certainly on cynic~ set, weflled for priority review. We believe there'se~ignificmt rned~ need here, and iscynic~ set representsarevolutionay new theapy md we're hopeful that the ~gency will review theappiic~tion on a priority ices md I cannot provide a~y information I:ejond that. Operator Your next que~ion isfrom C,~oline Co,horn with Morgm ~mley.

Caroline Copithome - Mog~n Staole~ - Analyst Matt Ge~ler - CIBC Wold Ma~kds -Analyst Thinks alot. Oper~or Thenext question isfrom DennisHa-p with Deut~:~Ba~c. Dennis Ha~ - Ded~h Benk -Analyst Congr~ul~ions on a ~rong qua-te the questions on cynic.el ~, hasFDA grmted th~t priority review, and if so, wh~t isthe FIDU FAdoazline. Andthenafollow-up que~tionon HUMIRA in the make~piase, ae you seeing sNitcherS from H U MIRA to Enid'el doe to thef"~ct thd: anmepercenta~e ofthosel~ients c~nnot g~ agood responseon theonceweetdy doing? George Morrow -Arogm Inc- EVP, Gldoat Co~d I'll t~ke the ~condone firsL This isGeorge. Whet we're seeing is-- I wouldn't s~' thiswholes~e snitching beck. Wha~ you ae seeing isrnmy rheurna~ologistsu~ng both products, md whet the!reexperiencing with H U MIRA isanmebre~kthrough end dose em_~tion a~d when they dose e~=~lete, they go from 40 millig~a-ns eve~-y otherweek to40 milligrams everywe6<. I believe whet's h~l:~oening isa number ofmmaged cae Think you. I had anme ques~ions~out the guidmce. Iwas curious2oout thelowering ofthetop end oftheproduct ~es guidmce in tot~t revenue guidmce~ Given theincrease in the Ara~esp EPO fra'~chise increa~ md -- the gJida~ce and ~iI of theother product c~egories unchaqged md wh~ csdsed you to leasoptimistic with the up,de there md ~concly on the operating exbense guidmce incre~e, it s~ns like it was just ~bout equiv~ent tothe a-nount ofthe bio Vee trum expense md I was curiousnhe~herwewould aneth~,reve~an ~ down tothe Iowe~ run ret~swhen wegot inthe first qua-ter in a:Jdtion to thes~anng chmge.

George Morrow -Arrg~ Inc-EVP, Gldoal Ope'a~ms I don't wmt to comment ~zout theflrst quater of 2004. We'll do that in degrees guidmce chmge cm beexpigned bythe I:io Veetrum license ~ that we(~d, lnterms ofproduct ~esit'sarnetter of ~pl:rom_.hing near theendoftheyea', aqd ha.,ing a$500 million tort ofl:~nd aound total revenueswhich isl think about the right leveI for acomFeny our ~ize to etal the yea- with, but with onequater, I thinkwe're ~e to c~l it tightermd thought wewould ~a'e th~ with you.

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Case 1:05-cv-12237-WGY

Document 54-15

Filed 04/25/2006

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~(~N- ~2003 l~gen E~rriros0:~ferer~0~[I
T h~ would ~ productsin the phyddm office, md ~o George, you might wmt to comment, but ~sfa- a~l under,trod, the EPO frmchi~ md cidy~s isMa~k Aufter - Wad~via - Analyst ~ure. I'm tarry. I memt the whole retro product frmchi~e incorpor~ling Proerit.

Operalor Your next question isfi'om Ma-k Auffer (1~) with W~chovia Mark Auftef - Wa~o4"a - An~yst Thmksfor t~.Jng my que~ion. Could you comment alittle I~t on theeffective of the propomclA.W, reformson how it would a~ct your budnessin terms of-- isit going to iml:~t majl:e thegrowth of theEFO maket or isit going to a~ect pridng in the future~md then ~sa mcondques~ion,ceuld youtdk alittle lit ~out how ifdrug rdmport~tion I:~comesastmda'd md dlow~l:ie pra::tice in the few toot, how could th~ iml:~ct the EFO frmchi~ ~swdl? Rich~d Nenula -Arrgm Inc- EVP, Fin~ Strate~ and Co-rrru~m~'ms a'd CFO It's tou~ to~i:ecul~t~ There's ~o rnmy AWP po~ililities flo~ting aound, who knows, md m I'd r~the~ not ~esul~te. I would ~aj that the peol3e who ultirn~dy m~e decidonsmore timestha~ not rr~ke gooddeddon, e~en thougt~theproce~to ge~ thereis pretty doned rne~j md t here'salot of concern. My hunch isth~ theAWP reform will rr~e it touter for us, but not in ~medgnific,mt waJ. Rdmport~ion isba~c~ly achdlenge for the tra:ttiond phammedti~ cem!~nies our products ha/e ~hipping, temperature ig~ues I don't me the E~,J~fl fra3chim I~ng meming~ully ~fected, in fret not~t dl. I dm noteth~t anuml:~" ofthelager compmiesha/e t~ken thes~epsto only~ve Cma3a wh~t product Cma~a ca3 consume. I think th~t'sare~on~l~e md ~poropri~te ~, mdthe FDACommi~oner ha~l:~ vo~' outspoken ~out thisi~Je. And m, I'm not worried ~bout it flom m a-n J~n spedfic point ofview. Mark Aufter - Wa~oaa - An~yst Th~t'svery hdp(ul. Could you ~ ~ive memoreind~t on the AW peer reform imue, ~sfa a~which pats ofthe EPO fr~nchim, which ge-tsofthe ~rowth ofthe fi'mchim a-e mos~ mndtiveto mdng md maj~ to ~y~cim ~pre~:J on -

Rccrrru~tiNanula CFO Inc- EVP, Fir~Strate~ a~d C i r hard cns and -Amain I thinkju~t ~ecul~ting on wh~ might h~ppen isnot cens~ructive Operator Your next gees~ion isfrom J~d SE~dek with ~ Sendek - Lazatd -An~yst Did I he~ you corr~ctlyth~t Roech's8erra compound rnaj infringe on your i~ued p~ents?

Richard Nanula -Am2m Inc- EVP, Fin~n~Sb'ate~ and Cow.nice'ms and CFO We'requitecer~dn it does

~ Sendek - Laza[d -An~ty~t OK. And on cyni~ mr, will that contribate pogtivgy or no:j~tivdy to your current grossma~ns Could you comment on that? Richard Nenula - Arn~m Inc- EVP, Finan~ Strate~/ and C~rr~Jmb'ms a~d CFO Cyni~ mt isnotgoingto bearn~or ~inger for thecompmy. At th~ Unidentified

Richa~'d Nanula -Amain Inc- EVP, Finan~ Strate~/ end Co-frnu~'m~ims ardCFO

Cm wet~ke thela~ quedionnow, I:te~e.

1 think th~ -- let's expldn here. The E]~O frmchim isci~l~s ........ Th~t'scever~cl bytheend s~ge rend cl~ re't, md th~t'snot ~ol:~ly wh~t peol:Je think ab3ut in the b'oa:l AWP

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Case 1:05-cv-12237-WGY

Document 54-15

Filed 04/25/2006

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IA'V1G',I. Q32003/~mgen EarringsO;nferen~e~ll
Oper~or Yes, gr. Our I~ ques~ionisflom J~lfTey Porjis(ph)with 8mford Berns~ein.

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Jerffrey Porjis- Sanfod Benstdn - Analyst Thanksfor t~ng my ques[ion. I ha~e aque~ion on cynical ~ecific~ly couldyou commenton the ci~tribution of p~tieets with hi~ md low burn turnover dma~e in the phm~ three ~udesand wh~, if my, inforrn~ion theFDA h~srectae~cd on bJrn biop~es for p~imts with hi~ md low bone turnover d~ in Pha~ III stu(Jesand wh~t ifmy inforr'n~tion ~GA is requested on run biop~es for p~i~nts with low turn of ~undmtly in renal os~eedystrophy. Richard Nanula -Amgm Inc- EVP, Finanm~ratecj/ and Com~J~imUms and CFO I t~l you, I re~ly don't wmt to get intothedet~ls of~l of the ~tuclestha~ weha~e donefor cynicg ~t. I ha~e indicated the full m~y~s ofthe Pha~ III ~tu~esin the America~ Sdenti~s ofne~hrology. I haven't h~ m ol:~ortunity to dg into the det~ls l it's a~unning data~t, l eneeurage you oryour oolle~gu~sto ha!e alook a[ it. J~frey Porjis Thinks very much. Richard Na~ula -Amgm Inc- EVP, Financ~Sbate~ af~d CoTm~mfims andCFO OK, Think you very much for joining usfor thisconference c~l. We'll t~k you toag~n next qJa-ter. Ifmybody ha~my questions, ple~e c~l my office. Think you. Operator Thank you, La~es aqd Gcntlernee, for p~rtidp~ing Thisdoee conclude toda/seenference~ You maj now cl~connect.

©~ O3~'~om, Inc F~ubllshed with permi s~on.Na pat of this publica[ion ma~ ber~oduccd ortrms~nitted in my form orby my m~s without the prior written con,s~ntofOZ~Y~tcom, Inc.