RUMOR ARI FUTURE

Tax inversions are when a company moves its corporate HQ to a location with low corporate tax rate. Production of drugs and where they are produced is not controlled by the FDA / Congress, unlike in other countries (Brazil, China) where you need MFG on location in order to sell within their borders. There are no legal ramifications to relocating production of Enbrel to AML, only bad press.

 

Bottom Line 2018 You morons are out of here about time!

 

If they follow through with a plan like this then Enbrel production could stay at ARI.

They also need to lay off the slugs that have been there 12 years plus.

 

BB whines and claims doom and gloom if Amgen doesn't become competitive and lower it's costs mainly in regards to taxes and a decreased foot print in the US. Do not believe the hype and BS, below is the actual tax rate Amgen pays. Is anyone surprised by Amgens creative accounting, BB you are a POS, and are ruining a once great company with your AFP. Amgen employees deserve better and are tired of "leadership".

5.5 % taxes http://inthecapital.streetwise.co/2014/09/17/these-five-corporations-pay-a-ridiculous-low-tax-rate-inforgraphic/


Pharmaceutical company Amgen, insurance agency AIG, healthcare company Abbot Laboratories and General Electric all pay less than 5.5 percent in overall taxes, the lowest rates out of the 100 firms analyzed by WalletHub. AIG and General Electric both also received federal bailouts in 2010, which explains their unusually low tax rates.

 

Brilliant post dude. You'll go far!

 

12% Cost of goods reduction won't save ARI. In addition, AFP has evaluated ARI and determined that ARI is much farther ahead in Lean and operational efficiency than any other Amgen site. AR5 is fully depreciated this year, and with SFP2 being implemented, the COGM for Enbrel would be ~80 $/gram. There is no way that AML comes close to ARI COGM within the next 5+ years. AML will likely recoup the difference in COGM and any dropped batches (what will AML's success rate be for Enbrel? ARI's is 99.5%) simply due to the difference in tax structure between PR and RI.

 

The ACO sites were even farther ahead and those are now closed. ARI is doomed. It is not good news but at least you know what is coming. Whether or not the severance packages will still be there in 3 years is another question.

 

The severance packages will be cut by half in the future. So they'll be there but not as good.

 

I can tell by your comment that your not going to care about what I have to say as a staff member who has worked at ARI for 15 + years. However, I have to vent because your post offended me. I have worked VERY hard, my kids were small when I started there and now they are full grown. I missed out on various phases of their lives to "support" whatever was happening at Amgen. Many long hours, many weekends and many other missed opportunities to do my "best" for Amgen. I did this all thinking I would get "somewhere" in my life and where it has gotten me is a VTP because in my opinion (the only reason) is I make too much money because I have been there so long and I am getting older which makes me a liability. I felt I more than earned my pay check during all the start ups, inspections, downsizings and culture changes. Amgen doesn't keep "slackers" they have a proven track record of walking people out quickly when a "slacker" is identified. Anyone who is working there that has been there for MANY years has earned their place there and work very hard. Most that worked there over 10 years consider Amgen "theirs" and work hard to show that they still have what it takes to remain in the culture. Unfortunately the people who have worked there and shown good work ethic for 10 plus years are in the same boat as I am and will be let go for all of their hard work and dedication to the company. Maybe you don't plan on staying for 10 years or more...but if you do...I would like you to think back on this rotten comment you made and ask yourself if you are a "slug". You may be witnessing some depression in some long time employee that is wearing the person down...or you don't know what is going on in their personal lifes...but to call anyone a slug or to categorize a bunch of people like this is just disrespectful. Remember Karama....I'm not trying to wish bad Karma on you. I just want to tell you Karma is real...and unless you apologize for that comment you may experience the Karma in some way in your future.

 

If ARI closes in two years then they will have to carry me out. My husband and I just bought a house in RI 8 years ago and we are upside down on it. I think I will claw someone's eyes out!

 

who cares about ARI. all are losers

 

That's a tough spot. I would start looking now and see if you can land a job that has a home buyout clause and see if they can help with the underwater piece. You are looking at layoffs for the next two years across the company. The chances of that affecting your job(s) is high.

 

Treasury passed something on Monday to prevent companies from moving to avoid paying taxes. Does anyone know the details?

 

Heard today from an VP that ARI was not at risk of closing. May not be true, but the first I heard from someone who should know

 

ARI won't close until SFP2 and AMG145 have been shown to have a high success rate at AML6. Earliest that can be is Q1Y2017, until then ARI will be Amgen's breadwinner.

 

Not at risk is wrong. It will be 2-3 years but there is huge risk. You are waiting for the inevitable. Only the executive staff knows the whole plan. The VP you spoke with probably wants to keep you working hard and to quit asking questions.

 

AML will cut the cost of Enbrel by 12-16%, it is a done deal. Amgen has it all figured out.

 

I think we are beyond if ARI will close, it is when. enbrel and 145 will be transferred, while there are snags in the AML transfer, it will be worked out, it may just take a little bit longer than they anticipated, I am still holding on to May 2017 ARI closing....bets anyone

 

As with ACO, ARI could put in place waterfall lay offs. ACO has some staff knowing they will be laid off at the end of 2015 and others beyond that. Talk about demotivating. Gives lots of time for those employees to steal and sell everything they can while still at Amgen. I would watch them like a hawk. ARI could start closing down in the beginning of 2016 under the thought that people will not leave and if they do, great, now we don't have to pay them severance. Either way, a miserable place to work. Just depends on what you are willing to put up with for a job. May 2017 for the death blow is a good guess.

 

AML will only cut the cost of Enbrel by 12-16% IF and only IF their production success rate can come exceed 85%. ARI runs at 99.5+% success rate and has an extremely low COGM as a result (including in that AR5 has fully deprecated). If AML6 can't produce Enbrel at a high success rate, it won't matter what potential cost savings they could have. I would expect tech transfer to take 1.5-2x longer than anticipated based simply on AML6 renovations and a large variety of tech that AML has to learn and incorporate. ARI isn't so successful right now by pure luck.