2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 280 Compensation Discussion and Analysis INNOVATIVEMEDICINESTRANSFORMINGAMGENFORTHEFUTUREGLOBALGEOGRAPHICREACHNEXT-GENERATIONBIOMANUFACTURINGIMPROVEDDRUGDELIVERYSYSTEMSCAPITALALLOCATIONANDINVESTINGFORLONG-TERMGROWTHBRANDEDBIOSIMlLARSInnovativeMedicinesTransformingAmgenfortheFutureGlobalGeographicReachNext-GenerationBiomanufacturingImprovedDrugDeliverySystemsCapitalAllocationandInvestingforlong-TermGrowthBrandedBiosimilars Our Strategy Six therapeutic areas form the core of our business—cardiovascular, oncology/hematology, neuroscience, inflammation, nephrology, and bone health. Our strategy in these therapeutic areas includes a series of integrated activities to strengthen our long-term competitive position in the industry. These activities include the following strategic priorities: Our Strategic Priorities INNOVATIVE MEDICINES TRANSFORMING AMGEN FOR THE FUTURE GLOBAL GEOGRAPHIC REACH NEXT-GENERATION BIOMANUFACTURING IMPROVED DRUG DELIVERY SYSTEMS CAPITAL ALLOCATION AND INVESTING FOR LONG-TERM GROWTH BRANDED BIOSIMILARS Key 2017 activities that align our NEO pay with performance and support the execution of these strategic priorities are summarized in the following pages. Strategic Priorities Description Innovative Medicines Our focus on developing innovative, “breakaway” medicines to address important unmet needs guides how we allocate resources across internal and external program possibilities. This results in a productive balance of internal development and external programs and collaborations reflected in our current product portfolio and pipeline. Transforming Amgen for the Future We continue to improve our business and operating model through significant transformation and process improvement efforts. Among these programs, we have reduced the time it takes to bring new medicines to market, reengineered internal processes to make them more efficient, and explored new technologies with potential to further enhance the value we deliver to patients. Further, these transformation and process improvement efforts have resulted in significant costs savings and improved return on capital. Global Geographic Reach We have been actively expanding our presence by opening new affiliates and locations around the world, pursuing appropriate acquisitions and acquiring global rights to market our products. Amgen medicines are now available to patients in approximately 100 countries worldwide. We are leveraging our global presence to deliver the potential of our products to patients globally. Next-Generation Biomanufacturing Our first next-generation biomanufacturing facility in Singapore has been constructed in less than half the time, at a quarter of the cost of a traditional facility while using 75% less space and having a much smaller impact on the environment. This facility was approved for certain commercial scale production by multiple regulatory agencies, including the FDA (1) and the EMA (2) in 2017. We are expanding our application of next-generation manufacturing in our organization. We announced in 2018 that we will invest in greater manufacturing capacity to support the volume growth that we foresee and plan to build a new drug substance manufacturing plant using our next-generation biomanufacturing capability in the U.S. Improved Drug Delivery Systems Biologic medicines are, for the most part, injected subcutaneously or administered intravenously. Innovations that make the delivery of our medicines easier and less costly offer important opportunities for differentiation, are good for patients and also have positive economic benefits to the healthcare system overall. CapitalAllocation andInvestingfor Long-TermGrowth We recognize that stockholders who support investment in developing innovative medicines require an appropriate return on the capital they commit to Amgen. In 2017, we returned $6.5 billion in capital to our stockholders ($3.4 billion in dividends and $3.1 billion in stock repurchases). Branded Biosimilars We believe our deep experience in biologics development and unparalleled capabilities in biotechnology manufacturing make entry into the emerging biosimilars market attractive and position us for leadership. (1) U.S. Food and Drug Administration. (2) European Medicines Agency. ⎪ 2018 Proxy Statement 33 Total of 06 pages in section AMGEN