SELECTED FINANCIAL HIGHLIGHTS

Years ended December 31

2005 2004 2003
(in millions, expect per share data)

Revenues $ 12,430 $ 9,997 $ 7,868

Net Income (loss) 3,674 2,363 2,259
Diluted earnings (loss) per share 2.93 1.81 1.69

Source: AMGEN INC, 10-K, March 10, 2006

HISTORICAL STOCK PRICE PERFORMANC

insert graph here

KEY COMPETITORS COMPANY DEBT RATIN

Company Name S&P Debt Rating 2005 Revenues

Janssen-Cilag

F. Hoffmann-La Roche Ltd. ?

Ortho Biotech Products, L.P. ?

Berlex, Inc. ?

MedImmune Oncology, Inc. ?

Chugai Pharmaceuticals Co., Ltd ?

Sanofi-Aventis

Novartis AG ("Novartis")

Kyowa Hakko Kogyo CO., Ltd

Centocor, Inc.
Schering Plough Corporation ??
Abbott Laboratories AA
Genentech, Inc. A+
Biogen IDEC Inc. N/A
Bristol-Myers Squibb Corporation A+
Pfizer, Inc. AAA

Amgen A+

Source: AMGEN 2005 10-K, March 10, 2006 & S&P Bond Guide 2006
NANCIAL HIGHLIGHTS

ed December 31 CAGR
2002 2001
expect per share data)

$ 4,991 $ 3,511 28.77%

(1,329) 1,120 26.82%
(1.21) 1.03 23.26%

CK PRICE PERFORMANCE

Leaders in
Market
COMPANY DEBT RATINGS S&P Ratings Hierarchy Capitalization
GENENTECH
005 Revenues Rating INC [DNA]

AAA AMGEN [AMGN]

GILEAD
SCIENCES
AAA [GILD]
CELGENE CP
A [CELG]

GENZYME
CORPORATION
BBB [GENZ]

BIOGEN IDEC
BBB INC [BIIB]

AMYLIN
PHARMA INC
BBB [AMLN]

CHARLES
RIVER LAB
CCC [CRL]

INVITROGEN
CC CORP [IVGN]
QIAGEN NV
C [QGEN]
D
Market Cap S&P rating

$72.5 B A+

$52.0 B A+

$40.0 B

$20.8 B

$20.0 B

$17.1 B

$4.4 B

$4.3 B

$4.0 B

$3.9 B
 This spreadsheet supports student analysis of the case,
"MoGen, Inc." (UVA -F-1559)

Copyright 2008 by the Trustees of the University of Virginia Darden School Foundation.
ol Foundation.
 Exhibit 1
MOGEN INC.
Income Statement ($ millions, except per share)

2005
Total revenues $12,430
Operating expenses:
Cost of sales 2,082
Research and development 2,314
Write-off of acquired research and development 0
Selling, general and administrative 2,790
Amortization of acquired intangible assets 347
Other items, net 49
Total operating expenses 7,582

Operating income 4,848

Interest expense, net 20
Income before income taxes 4,868
Provision for income taxes 1,194
Net income $3,674

Earnings per share:

Basic $2.97
Diluted $2.92

Shares used in calculation of earnings per share (millions):

Basic 1,236
Diluted 1,258
millions, except per share)

2004 2003
$10,550 $8,356

1,731 1,341
2,028 1,655
554 0
2,556 1,957
333 336
0 (24)
7,202 5,265

3,348 3,091
47 82
3,395 3,173
1,032 914
$2,363 $2,259

$1.86 $1.75
$1.79 $1.68

1,271 1,288
1,320 1,346
 Exhibit 2
MOGEN INC.
Consolidated Balance Sheets ($ millions)

2005 2004 2003

Current Assets
Cash & Short-Term Investments 5,255 5,808 5,123
Receivables 1,769 1,461 1,008
Inventories 1,258 888 713
Other Current Assets 953 1,013 558
Total Current Assets 9,235 9,170 7,402

Long-Term Assets
Net Property Plant & Equipment 5,038 4,712 3,799
Intangible Assets & Goodwill 14,237 14,558 14,108
Other Assets 787 781 804
Total Assets 20,062 20,051 18,711

Current Liabilities
Current Portion of Long-Term Debt - 1,173 -
Accounts Payable 596 507 327
Other Accrued Liabilities 2,999 2,477 2,129
Total Current Liabilities 3,595 4,157 2,456

Long-Term Liabilities
Long-Term Debt 3,957 3,937 3,080
Deferred Taxes and Other 1,294 1,422 1,188
Total Liabilities 8,846 9,516 6,724
Shareholders' Equity
Common Capital ($0.0001 par value) 0.122 0.126 0.128
Capital Surplus 23,561 22,078 19,995
Retained Earnings (3,110) (2,373) (606)
Total Shareholders' Equity 20,451 19,705 19,389
Total Liab. & Shareholders' Equity 29,297 29,221 26,113

Common Shares Outstanding (millions) 1,224 1,260 1,284

 2005 2004 2003
Inventory 10.1% 8.4% 8.5%
Receivables 14.2% 13.8% 12.1%
Payables 4.8% 4.8% 3.9%

Improvements
Amount Target Ratio Year
Inventory 212 8.4% 2004
Receivables 270 12.1% 2003
TOTAL 481
Inputs
Stock Price 77.98
Start Date 2/1/2006
End Date 2/1/2011
Days per Year 365
Risk-free rate 4.46%
Time to Maturity (years) 5
Exhibit 3
MOGEN INC.

MoGen Option Data: January 10, 2006

(MoGen closing stock price = $77.98)

Days to Exercise Closing

Exercise Date Maturity Price Price
Call 4/22/2006 102 $75 $6.60
Call 4/22/2006 102 $80 $3.85
Call 1/20/2007 375 $75 $10.70
Call 1/20/2007 375 $80 $7.75

Put 4/22/2006 102 $75 $2.70

Put 4/22/2006 102 $80 $5.00
Put 1/20/2007 375 $75 $4.65
Put 1/20/2007 375 $80 $6.90

Date of data: 1/10/2006

ry 10, 2006

Open
Interest Volume St Dev d1 d2 N(d1) N(d2)
3,677 52 28.0% 0.197 0.049 0.578 0.520
6,444 98 26.6% 0.133 -0.007 #NAME? 0.497
6,974 143 23.7% 0.350 0.110 #NAME? 0.544
9,790 3 22.4% 0.290 0.063 #NAME? 0.525
296 25.4%

9,529 10
8,512 5
5,175 10
4,380 0
 Call Open
Interest as %
Call value Total open
per share interest
6.60 0.18
#NAME? 0.33
#NAME? 0.48
#NAME? 0.01
 S&P-Indexed to
Date S&P 500 MoGen Mogen MoGen Returns
1/2/2001 1366.01 70.31 70.31
2/1/2001 1239.94 72.06 63.8210418665 2.49%
3/1/2001 1160.33 60.19 65.7957661661 -16.47%
4/2/2001 1249.46 61.14 75.7108172675 1.58%
5/1/2001 1255.82 66.38 70.6678918893 8.57%
6/1/2001 1224.38 60.68 68.5497585641 -8.59%
7/2/2001 1211.23 62.71 69.5548614809 3.35%
8/1/2001 1133.58 64.3 65.8025394021 2.54%
9/4/2001 1040.94 58.77 64.5640284762 -8.60%
10/1/2001 1059.78 56.82 71.5825425097 -3.32%
11/1/2001 1139.45 66.43 75.5956231482 16.91%
12/3/2001 1148.08 56.44 70.8425159507 -15.04%
1/2/2002 1130.2 55.5 69.2150041809 -1.67%
2/1/2002 1106.73 57.98 68.8499259423 4.47%
3/1/2002 1147.39 59.68 72.8931093401 2.93%
4/1/2002 1076.92 52.88 65.9917248712 -11.39%
5/1/2002 1067.14 47.63 69.6714829328 -9.93%
6/3/2002 989.82 41.88 65.2156644864 -12.07%
7/1/2002 911.62 45.64 64.7552102402 8.98%
8/1/2002 916.07 45.03 70.6532126325 -1.34%
9/3/2002 815.28 41.7 62.5741884354 -7.40%
10/1/2002 885.76 46.56 76.3882170543 11.65%
11/1/2002 936.31 47.2 74.322566045 1.37%
12/2/2002 879.82 48.34 66.0680161485 2.42%
1/2/2003 855.7 50.96 68.3824725512 5.42%
2/3/2003 841.15 54.64 69.1144752834 7.22%
3/3/2003 848.18 57.55 70.8976232539 5.33%
4/1/2003 916.92 61.3 76.0082119361 6.52%
5/1/2003 963.59 64.74 73.8886848362 5.61%
6/2/2003 974.5 65.94 71.1060668957 1.85%
7/1/2003 990.31 69.43 71.4506886609 5.29%
8/1/2003 1008.01 65.94 71.5666640749 -5.03%
9/2/2003 995.97 64.52 69.4701944425 -2.15%
10/1/2003 1050.71 61.76 74.1743427011 -4.28%
11/3/2003 1058.2 57.62 70.8112057561 -6.70%
12/1/2003 1111.92 61.79 73.8793188433 7.24%
1/2/2004 1131.13 64.66 71.5247052846 4.64%
2/2/2004 1144.94 63.53 71.1684168928 -1.75%
3/1/2004 1126.21 58.15 69.1598032211 -8.47%
4/1/2004 1107.3 56.41 69.1294367835 -2.99%
5/3/2004 1120.68 54.7 71.1595871038 -3.03%
6/1/2004 1140.84 54.57 71.5748120784 -0.24%
7/1/2004 1101.72 56.88 67.8990333439 4.23%
8/2/2004 1104.24 59.29 70.4708223505 4.24%
9/1/2004 1114.58 56.81 70.9683762588 -4.18%
10/1/2004 1130.2 56.8 71.2953417431 -0.02%
11/1/2004 1173.82 60.04 73.0236101575 5.70%
12/1/2004 1211.92 64.15 72.5921309911 6.85%
1/3/2005 1181.27 62.24 68.531828586 -2.98%
2/1/2005 1203.6 61.61 71.6390969042 -1.01%
3/1/2005 1180.59 58.21 68.9658382353 -5.52%
4/1/2005 1156.85 58.21 68.8961650531 0.00%
5/2/2005 1191.5 62.58 72.4159268704 7.51%
6/1/2005 1191.33 60.46 70.2999683592 -3.39%
7/1/2005 1234.18 79.77 72.8389243954 31.94%
8/1/2005 1220.33 79.9 69.5209793547 0.16%
9/1/2005 1228.81 79.67 70.7985799743 -0.29%
10/3/2005 1207.01 75.62 69.0626484973 -5.08%
11/1/2005 1249.48 80.93 72.7839361729 7.02%
12/1/2005 1248.29 78.86 70.2430370234 -2.56%

-8.6% 12.2% 7.8%

-1.7% 2.4% 27.0%
S&P Returns Exhibit 4
MOGEN INC.
-9.2% MoGen Stock Price for 2001 to 2005
-6.4%
7.7%
0.5%
-2.5%
-1.1%
-6.4%
-8.2%
1.8%
7.5%
0.8%
-1.6%
-2.1%
3.7%
-6.1%
-0.9%
-7.2%
-7.9%
0.5%
-11.0% MoGen S&P
8.6%
5.7%
-6.0%
-2.7% MoGen
-1.7% 5 year appreciation 12.2%
0.8% Annual appreciation (average) 2.4%
8.1% Annualized volatility 27.0%
5.1%
1.1%
1.6%
1.8%
-1.2%
5.5%
0.7%
5.1%
1.7%
1.2%
-1.6%
-1.7%
1.2%
1.8%
-3.4%
0.2%
0.9%
1.4%
 3.9%
3.2%
-2.5%
1.9%
-1.9%
-2.0%
3.0%
0.0%
3.6%
-1.1%
0.7%
-1.8%
3.5%
-0.1%

4.3%
14.9%
S&P

S&P 500
-8.6%
-1.7%
14.9%
 Exhibit 5
MOGEN INC.
Long-Term Debt as of December 31, 2005 ($ millions)

1.125% convertible notes due in 2032 $1,759

4.85% notes due 2014 1,000
4.00% notes due 2009 998
6.5% debt securities due 2007 100
8.1% notes due 2097 100
Total borrowings $3,957
 Exhibit 6
MOGEN INC.
Capital Market Data for January 2006

U.S. Government Yields

Treasury bill (1-year) 4.45%

Treasury note (5-year) 4.46%
Treasury bond (20-year) 4.65%

Corporate Long-Term Bond Yields

Aaa 5.29%
Aa 5.45%
A 5.79%
Baa 6.24%
Notional Value $ 5,000,000,000
Face Value $ 1,000
Start Date 2/1/2006
End Date 2/1/2011
Days per Year 365

15% Conversion Premium

Inputs
Stock Price 77.98
Conversion Premium 15%
Strike/Conversion price 89.68
Risk-free rate 4.46%
Time to Maturity (years) 5
Conversion rate (# Stocks per bond) 11.15
St.Dev 25.4%

Intermediate Computations
d1 0.430
d2 -0.137
N(d1) 0.667
N(d2) 0.445
Call value per share 20.021

Option Value per Bond $ 223

Option Value per Issue $ 1,116,285,028
20% Conversion Premium

Inputs
Stock Price 77.98
Conversion Premium 20%
Strike/Conversion price 93.58
Risk-free rate 4.46%
Time to Maturity (years) 5
Conversion rate (# Stocks per bond) 10.69
St.Dev 25.4%

Intermediate Computations
d1 0.356
d2 -0.212
N(d1) 0.639
N(d2) 0.416
Call value per share 18.678

Option Value per Bond $ 200

Option Value per Issue $ 998,004,733
25% Conversion Premium

Inputs
Stock Price 77.98
Conversion Premium 25%
Strike/Conversion price 97.48
Risk-free rate 4.46%
Time to Maturity (years) 5
Conversion rate (# Stocks per bond) 10.26
St.Dev 25.4%

Intermediate Computations
d1 0.284
d2 -0.284
N(d1) 0.612
N(d2) 0.388
Call value per share 17.424

Option Value per Bond $ 179

Option Value per Issue $ 893,767,701
30% Conversion Premium

Inputs
Stock Price 77.98
Conversion Premium 30%
Strike/Conversion price 101.37
Risk-free rate 4.46%
Time to Maturity (years) 5
Conversion rate (# Stocks per bond) 9.86
St.Dev 25.4%

Intermediate Computations
d1 0.215
d2 -0.353
N(d1) 0.585
N(d2) 0.362
Call value per share 16.254

Option Value per Bond $ 160

Option Value per Issue $ 801,702,851
Notional Value $ 5,000,000,000
Face Value $ 1,000

15% Conversion Premium

Inputs
Option Value per Bond $ 223
Straight Bond Component $ 777
Time to Maturity (years) 5.00
#Periods 10.00
Cost of Debt 5.75%

Intermediate Calculation
Annuity 8.58
Coupon $ 3

Coupon rate 0.5%

20% Conversion Premium
Inputs
Option Value per Bond $ 200
Straight Bond Component $ 800
Time to Maturity (years) 5.00
#Periods 10.00
Cost of Debt 5.75%

Intermediate Calculation
Annuity 8.58
Coupon $ 5

Coupon rate 1.1%

25% Conversion Premium
Inputs
Option Value per Bond $ 179
Straight Bond Component $ 821
Time to Maturity (years) 5.00
#Periods 10.00
Cost of Debt 5.75%

Intermediate Calculation
Annuity 8.58
Coupon $ 8

Coupon rate 1.6%

30% Conversion Premium
Inputs
Option Value per Bond $ 160
Straight Bond Component $ 840
Time to Maturity (years) 5.00
#Periods 10.00
Cost of Debt 5.75%

Intermediate Calculation
Annuity 8.58
Coupon $ 10

Coupon rate 2.0%