| Document and Entity Information | ||
| 3 Months Ended
Mar. 31, 2010 | May. 03, 2010
| |
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | 2010-03-31 | |
| Document Fiscal Year Focus | 2,010 | |
| Document Fiscal Period Focus | Q1 | |
| Trading Symbol | AMGN | |
| Entity Registrant Name | AMGEN INC | |
| Entity Central Index Key | 0000318154 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 957,938,383 |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | ||
| In Millions, except Per Share data | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
| Revenues: | ||
| Product sales | $3,528 | $3,238 |
| Other revenues | 64 | 70 |
| Total revenues | 3,592 | 3,308 |
| Operating expenses: | ||
| Cost of sales (excludes amortization of certain acquired intangible assets presented below) | 508 | 477 |
| Research and development | 646 | 633 |
| Selling, general and administrative | 884 | 798 |
| Amortization of certain acquired intangible assets | 74 | 74 |
| Other | (1) | 5 |
| Total operating expenses | 2,111 | 1,987 |
| Operating income | 1,481 | 1,321 |
| Interest expense, net | 145 | 147 |
| Interest and other income, net | 84 | 58 |
| Income before income taxes | 1,420 | 1,232 |
| Provision for income taxes | 253 | 213 |
| Net income | $1,167 | $1,019 |
| Earnings per share: | ||
| Basic | 1.19 | 0.99 |
| Diluted | 1.18 | 0.98 |
| Shares used in calculation of earnings per share: | ||
| Basic | 982 | 1,032 |
| Diluted | 988 | 1,037 |
| CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | ||
| In Millions | 3 Months Ended
Mar. 31, 2010 | 12 Months Ended
Dec. 31, 2009 |
| Current assets: | ||
| Cash and cash equivalents | $2,266 | $2,884 |
| Marketable securities | 11,851 | 10,558 |
| Trade receivables, net | 2,271 | 2,109 |
| Inventories | 2,202 | 2,220 |
| Other current assets | 1,219 | 1,161 |
| Total current assets | 19,809 | 18,932 |
| Property, plant and equipment, net | 5,619 | 5,738 |
| Intangible assets, net | 2,462 | 2,567 |
| Goodwill | 11,335 | 11,335 |
| Other assets | 1,141 | 1,057 |
| Total assets | 40,366 | 39,629 |
| Current liabilities: | ||
| Accounts payable | 882 | 574 |
| Accrued liabilities | 3,302 | 3,299 |
| Current portion of convertible notes | 2,378 | |
| Total current liabilities | 6,562 | 3,873 |
| Convertible notes | 2,201 | 4,512 |
| Other long-term debt | 7,085 | 6,089 |
| Other non-current liabilities | 2,179 | 2,488 |
| Contingencies and commitments | ||
| Stockholders' equity: | ||
| Common stock and additional paid-in capital; $0.0001 par value; 2,750 shares authorized; outstanding-966 shares in 2010 and 995 shares in 2009 | 27,031 | 26,944 |
| Accumulated deficit | (4,852) | (4,322) |
| Accumulated other comprehensive income | 160 | 45 |
| Total stockholders' equity | 22,339 | 22,667 |
| Total liabilities and stockholders' equity | $40,366 | $39,629 |
| CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | ||
| Share data in Millions | Mar. 31, 2010
| Dec. 31, 2009
|
| Common stock and additional paid-in capital, par value | 0.0001 | 0.0001 |
| Common stock and additional paid-in capital, shares authorized | 2,750 | 2,750 |
| Common stock and additional paid-in capital, outstanding | 966 | 995 |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | ||
| In Millions | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
| Cash flows from operating activities: | ||
| Net income | $1,167 | $1,019 |
| Depreciation and amortization | 252 | 267 |
| Stock-based compensation expense | 68 | 59 |
| Other items, net | 10 | |
| Changes in operating assets and liabilities: | ||
| Trade receivables, net | (162) | 64 |
| Inventories | 21 | 22 |
| Other current assets | (43) | (123) |
| Accounts payable | 308 | 44 |
| Accrued income taxes | (189) | 176 |
| Other accrued liabilities | (519) | (669) |
| Net cash provided by operating activities | 913 | 859 |
| Cash flows from investing activities: | ||
| Purchases of property, plant and equipment | (94) | (117) |
| Purchases of marketable securities | (3,160) | (3,580) |
| Proceeds from sales of marketable securities | 2,170 | 3,426 |
| Proceeds from maturities of marketable securities | 141 | 425 |
| Other | (12) | (15) |
| Net cash (used in) provided by investing activities | (955) | 139 |
| Cash flows from financing activities: | ||
| Repurchases of common stock | (1,587) | (1,997) |
| Net proceeds from issuance of debt | 989 | 1,980 |
| Net proceeds from issuance of common stock in connection with the Company's equity award programs | 26 | 21 |
| Other | (4) | 1 |
| Net cash (used in) provided by financing activities | (576) | 5 |
| (Decrease) increase in cash and cash equivalents | (618) | 1,003 |
| Cash and cash equivalents at beginning of period | 2,884 | 1,774 |
| Cash and cash equivalents at end of period | $2,266 | $2,777 |
| Summary of significant accounting policies | |
| 3 Months Ended
Mar. 31, 2010 | |
| Summary of significant accounting policies | 1. Summary of significant accounting policies Business Amgen Inc. (including its subsidiaries, referred to as Amgen, the Company, we, our and us) is a global biotechnology medicines company that discovers, develops, manufactures and markets medicines for grievous illnesses. We concentrate on innovating novel medicines based on advances in cellular and molecular biology and we operate in one business segment, human therapeutics. Basis of presentation The financial information for the three months ended March31, 2010 and 2009 is unaudited but includes all adjustments (consisting of only normal recurring adjustments, unless otherwise indicated), which Amgen Inc., including its subsidiaries, considers necessary for a fair presentation of the results of operations for those periods. Interim results are not necessarily indicative of results for the full fiscal year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December31, 2009. Principles of consolidation The condensed consolidated financial statements include the accounts of Amgen as well as its wholly owned subsidiaries. We do not have any significant interests in any variable interest entities. All material intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates. Property, plant and equipment, net Property, plant and equipment are recorded at historical cost, net of accumulated depreciation of $4.8 billion and $4.6 billion as of March31, 2010 and December31, 2009, respectively. Fair value measurement In January 2010, we adopted a newly issued accounting standard which requires additional disclosure about the amounts of and reasons for significant transfers between levels of the fair value hierarchy discussed in Note 8, Fair value measurements. This standard also clarifies existing disclosure requirements related to the level of disaggregation of fair value measurements for each class of assets and liabilities and disclosures about inputs and valuation techniques used to measure fair value for both recurring and nonrecurring Level2 and Level3 measurements. As this newly issued accounting standard only requires enhanced disclosure, the adoption of this standard did not impact our financial position, results of operations or cash flows. In addition, effective for interim and annual periods beginning after December15, 2010, this standard will require additional disclosure and require an entity to present disaggregated information about activity in Level3 fair value measurements on a gross basis, rather than a single amount. |
| Income taxes | |
| 3 Months Ended
Mar. 31, 2010 | |
| Income taxes | 2. Income taxes The effective tax rates for the three months ended March31, 2010 and March31, 2009 are different from the statutory rates primarily as a result of indefinitely invested earnings of our foreign operations. We do not provide for U.S. income taxes on undistributed earnings of our foreign operations that are intended to be invested indefinitely outside the United States. One or more of our legal entities file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and certain foreign jurisdictions. Our income tax returns are routinely audited by the tax authorities in those jurisdictions. Significant disputes can arise with these tax authorities involving issues of the timing and amount of deductions, the use of tax credits and allocations of income among various tax jurisdictions because of differing interpretations of tax laws and regulations. We are no longer subject to U.S. federal income tax examinations for years ending on or before December31, 2004 or to California state income tax examinations for years ending on or before December31, 2003. During the three months ended March31, 2010, the gross amount of our unrecognized tax benefits (UTBs) increased approximately $75 million as a result of tax positions taken during the current year. Substantially all of the UTBs as of March31, 2010, if recognized, would affect our effective tax rate. As of March31, 2010, the Company believes that it is reasonably possible that our gross liabilities for UTBs may decrease by up to $375 million within the succeeding twelve months due to potential tax settlements. |
| Earnings per share | |
| 3 Months Ended
Mar. 31, 2010 | |
| Earnings per share | 3. Earnings per share Basic earnings per share (EPS) is based upon the weighted-average number of our common shares outstanding. Diluted EPS is based upon the weighted-average number of our common shares and potential dilutive common shares outstanding. Potential common shares outstanding determined using the treasury stock method principally include: stock options, restricted stock units and other equity awards under our employee compensation plans; our 2011 Convertible Notes, 2013 Convertible Notes and 2032 Modified Convertible Notes, as discussed below; and our outstanding warrants (collectively dilutive securities). The convertible note hedges purchased in connection with the issuance of our 2011 Convertible Notes and 2013 Convertible Notes are excluded from the calculation of diluted EPS as their impact is always anti-dilutive. Upon conversion of our 2011 Convertible Notes, 2013 Convertible Notes and 2032 Modified Convertible Notes, the principal amount or accreted value would be settled in cash and the excess of the conversion value, as defined, over the principal amount or accreted value may be settled in cash and/or shares of our common stock. Therefore, only the shares of our common stock potentially issuable with respect to the excess of the notes conversion value over their principal amount or accreted value, if any, are considered as dilutive potential common shares for purposes of calculating diluted EPS. The following table sets forth the computation for basic and diluted EPS (in millions, except per share information): Threemonthsended March 31, 2010 2009 Income (Numerator): Net income for basic and diluted EPS $ 1,167 $ 1,019 Shares (Denominator): Weighted-average shares for basic EPS 982 1,032 Effect of dilutive securities 6 5 Weighted-average shares for diluted EPS 988 1,037 Basic EPS $ 1.19 $ 0.99 Diluted EPS $ 1.18 $ 0.98 For the three months ended March31, 2010 and 2009, there were employee stock options, calculated on a weighted average basis, to purchase 40million and 46million shares of our common stock, respectively, with exercise prices greater than the average market prices of our common stock for these periods that are not included in the computation of diluted EPS as their impact would have been anti-dilutive. In addition, shares of our common stock, which may be issued upon conversion of our convertible debt or upon exercise of our warrants, are not included in either period presented above as their impact on diluted EPS would have been anti-dilutive. Shares which may be issued under our 2010 performance award program were also excluded because conditions under the program were not met. |
| Available-for-sale securities | |
| 3 Months Ended
Mar. 31, 2010 | |
| Available-for-sale securities | 4. Available-for-sale securities The fair values of available-for-sale investments by type of security, contractual maturity and classification in the Consolidated Balance Sheets are as follows (in millions): March 31, 2010 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Type of security: U.S. Treasury securities $ 2,994 $ 16 $ (6 ) $ 3,004 Other government related debt securities: Obligations of U.S. government agencies and FDIC guaranteed bank debt 3,094 65 3,159 Foreign and other 1,128 16 1,144 Corporate debt securities: Financial 1,637 36 (2 ) 1,671 Industrial 1,830 55 (1 ) 1,884 Other 300 8 308 Mortgage and asset backed securities 552 5 (1 ) 556 Money market mutual funds 2,174 2,174 Other short-term interest bearing securities 128 128 Total debt securities 13,837 201 (10 ) 14,028 Equity securities 55 (7 ) 48 $ 13,892 $ 201 $ (17 ) $ 14,076 December 31, 2009 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Type of security: U.S. Treasury securities $ 1,929 $ 12 $ (6 ) $ 1,935 Obligations of U.S. government agencies and FDIC guaranteed bank debt 3,731 62 (1 ) 3,792 Corporate debt securities 4,193 96 (4 ) 4,285 Mortgage and asset backed securities 489 4 (2 ) 491 Money market mutual funds 2,784 2,784 Other short-term interest bearing securities 55 55 Total debt securities 13,181 174 (13 ) 13,342 Equity securities 63 (8 ) 55 $ 13,244 $ 174 $ (21 ) $ 13,397 Contractual maturity March31, 2010 December31, 2009 Maturing in one year or less $ 2,958 $ 3,444 Maturing after one year through three years 6,251 6,369 Maturing after three years through five years 4,452 3,207 Maturing after five years 367 322 Total debt securities 14,028 13,342 Equity securities 48 55 $ 14,076 $ 13,397 Classification in the Condensed Consolidated Balance Sheets March 31, 2010 December 31, 2009 Cash and cash equivalents $ 2,266 $ 2,884 Marketable securities 11,851 10,558 Other assetsnoncurrent 48 55 14,165 13,497 Less cash (89) (100) $ 14,076 $ 13,397 For the three months ended March31, 2010 and 2009, realized gains totaled $21 million and $34 million, respectively, and realized losses to |
| Inventories | |
| 3 Months Ended
Mar. 31, 2010 | |
| Inventories | 5. Inventories Inventories consisted of the following (in millions): March31, 2010 December31, 2009 Raw materials $ 118 $ 97 Work in process 1,573 1,683 Finished goods 511 440 $ 2,202 $ 2,220 As of March31, 2010 and December31, 2009 we had approximately $258 million of Prolia inventory capitalized in preparation for its anticipated product launch. We are currently in discussions with regulatory authorities in the United States, European Union (EU) and various other countries regarding the approval of Prolia. The amount capitalized for Prolia inventory is included in work in process. |
| Financing arrangements | |
| 3 Months Ended
Mar. 31, 2010 | |
| Financing arrangements | 6. Financing arrangements The following table reflects the carrying value of our borrowings under our various financing arrangements (dollar amounts in millions): March31, 2010 December31, 2009 0.125% convertible notes due February 2011 (2011 Convertible Notes) $ 2,378 $ 2,342 0.375% convertible notes due 2013 (2013 Convertible Notes) 2,119 2,088 5.85% notes due 2017 (2017 Notes) 1,099 1,099 4.85% notes due 2014 (2014 Notes) 1,000 1,000 5.70% notes due 2019 (2019 Notes) 998 998 6.40% notes due 2039 (2039 Notes) 995 995 6.375% notes due 2037 (2037 Notes) 899 899 5.75% notes due 2040 (2040 Notes) 696 6.15% notes due 2018 (2018 Notes) 499 499 6.90% notes due 2038 (2038 Notes) 499 499 4.50% notes due 2020 (2020 Notes) 300 Zero-coupon modified convertible notes due in 2032 (2032 Modified Convertible Notes) 82 82 8.125% notes due 2097 (Other) 100 100 Total borrowings 11,664 10,601 Less current portion (2011 Convertible Notes) 2,378 Total non-current debt $ 9,286 $ 10,601 2020 Notes and 2040 Notes In March 2010, we issued $700 million aggregate principal amount of notes due in 2040 (the 2040 Notes) and $300 million aggregate principal amount of notes due in 2020 (the 2020 Notes) in a registered offering. The 2040 Notes and 2020 Notes pay interest at fixed annual rates of 5.75% and 4.50%, respectively. The 2040 Notes and 2020 Notes may be redeemed at any time at our option, in whole or in part, at 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest, if any, and a make-whole amount, as defined. Upon the occurrence of a change in control triggering event, as defined, we may be required to purchase for cash all or a portion of the 2040 Notes and the 2020 Notes at a price equal to 101% of the principal amount of the notes plus accrued interest. Debt issuance costs totaled approximately $7 million and are being amortized over the lives of the notes. 2017 Notes During the three months ended March 31, 2010 we entered into interest rate swap agreements that effectively convert a fixed rate interest coupon to a LIBOR-based floating rate coupon over the remaining life of the 2017 notes. |
| Stockholders' equity | |
| 3 Months Ended
Mar. 31, 2010 | |
| Stockholders' equity | 7. Stockholders equity Stock repurchase program A summary of activity under our stock repurchase program is as follows (in millions): 2010 2009 Shares Dollars Shares Dollars First quarter 29.1 $ 1,684 37.5 $ 1,997 In December 2009, the Board of Directors authorized us to repurchase up to an additional $5.0 billion of common stock of which a total of $4.3 billion remains available for stock repurchases as of March 31, 2010. The manner of purchases, the amount we spend and the number of shares repurchased will vary based on a variety of factors, including the stock price, blackout periods in which we are restricted from repurchasing shares, and our credit rating and may include private block purchases as well as market transactions. |
| Fair value measurement | |
| 3 Months Ended
Mar. 31, 2010 | |
| Fair value measurement | 8. Fair value measurement We use various valuation approaches in determining the fair value of our financial assets and liabilities within a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Companys assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: Level1 Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access Level 2 Valuations for which all significant inputs are observable, either directly or indirectly, other than level 1 inputs Level 3 Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level of input used that is significant to the overall fair value measurement. The following fair value hierarchy tables present information about each major class/category of the Companys financial assets and liabilities measured at fair value on a recurring basis (in millions): Fair value measurement at March 31, 2010 using: Quotedpricesin activemarketsfor identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Assets: Available-for-sale securities: U.S. Treasury securities $ 3,004 $ $ $ 3,004 Other government related debt securities: Obligations of U.S. government agencies and FDIC guaranteed bank debt 3,159 3,159 Foreign and other 1,144 1,144 Total other government related debt securities 4,303 4,303 Corporate debt securities: Financial 1,671 1,671 Industrial 1,884 1,884 Other 308 308 Total corporate debt securities 3,863 3,863 Mortgage and asset backed securities 556 556 Money market mutual funds 2,174 2,174 |
| Derivative instruments | |
| 3 Months Ended
Mar. 31, 2010 | |
| Derivative instruments | 9. Derivative instruments The Company is exposed to certain risks related to its business operations. The primary risks that we manage by using derivative instruments are foreign exchange rate risk and interest rate risk. We use financial instruments, including foreign currency forward, foreign currency option and interest rate swap contracts, to reduce our risk to these exposures. We do not use derivatives for speculative trading purposes. We recognize all of our derivative instruments as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets (see Note 8, Fair value measurement). The accounting for changes in the fair value of a derivative instrument depends on whether it has been formally designated and qualifies as part of a hedging relationship under the applicable accounting standards and, further, on the type of hedging relationship. For derivatives formally designated as hedges, we assess both at inception and quarterly thereafter, whether the hedging derivatives are highly effective in offsetting changes in either the fair value or cash flows of the hedged item. Our derivatives that are not designated and do not qualify as hedges are adjusted to fair value through current earnings. We are exposed to possible changes in values of certain anticipated foreign currency cash flows resulting from changes in foreign currency exchange rates, primarily associated with our international product sales denominated in Euros. Increases or decreases in the cash flows associated with our international product sales due to movements in foreign currency exchange rates are partially offset by the corresponding increases and decreases in our international operating expenses resulting from these foreign currency exchange rate movements. To further reduce our exposure to foreign currency exchange rate fluctuations on our international product sales, we enter into foreign currency forward and option contracts to hedge a portion of our projected international product sales primarily over a three-year time horizon with, at any given point in time, a higher percentage of nearer term projected product sales being hedged than successive periods. As of March31, 2010 and December31, 2009, we had open foreign currency forward contracts, primarily Euro-based, with notional amounts of $3.3 billion and $3.4 billion, respectively, and open option contracts with notional amounts of $475 million and $376 million, respectively. In connection with the anticipated issuance of long-term fixed-rate debt, we have occasionally entered into forward interest rate contracts in order to hedge the variability in cash flows due to changes in the applicable Treasury rate between the time we entered into these contracts and the time the related debt is issued. These foreign currency forward and option contracts and forward interest rate contracts have been designated as cash flow hedges, and accordingly, the effective portion of the unrealized gains and losses on these contracts are reported in Accumulated other comprehensive income in the Condensed Consolidated Balance Sheets and reclassified to earnings in the same periods during which t |
| Contingencies and commitments | |
| 3 Months Ended
Mar. 31, 2010 | |
| Contingencies and commitments | 10. Contingencies and commitments In the ordinary course of business, we are involved in various legal proceedings and other matters that are complex in nature and have outcomes that are difficult to predict. We record accruals for such contingencies to the extent that we conclude that it is probable that a liability will be incurred and the amount of the related loss can be reasonably estimated. Certain of our legal proceedings and other matters are discussed below: Teva v. Amgen, the G-CSF Patent Litigation On May 4, 2010, Teva USA filed with the U.S. District Court for the Eastern District of Pennsylvania an amended complaint leaving in tack its request that Amgens U.S. Patent Nos. 5,580,755 and 5,582,823 be declared invalid but withdrawing its request that the court declare the patents will not be infringed by Tevas Filgrastim molecule. Both Teva Ltd. and Teva USA also filed amended answers withdrawing their defense of non-infringement to Amgens counterclaim for declaratory judgment of infringement. The U.S. District Court for the Eastern District of Pennsylvania has scheduled a hearing for claim construction on August 13, 2010. Kennedy Institute v. Amgen Inc. and Wyeth The case was dismissed with prejudice by the U.S. District Court for the District of Delaware on March30, 2010, on a stipulation between the parties following settlement of the dispute. Simonian v. Amgen Inc. On March9, 2010, Thomas A. Simonian filed a lawsuit in the U.S. District Court for the Northern District of Illinois alleging that Amgen violated a false marking statute by marking product packaging or product inserts of its NEUPOGEN product with U.S. Patent Nos. 4,810,643 and 4,999,291, now both expired. Average Wholesale Price (AWP) Litigation On March26, 2010, Amgen and Immunex reached a settlement with the New York counties in their multi-district litigation (MDL) proceeding, and on April14, 2010, both companies were dismissed with prejudice from the matter. Birch v. Sharer, et al. The case filed on February8, 2010 by plaintiff Birch was recently assigned to Judge Highberger in the Complex Division of Los Angeles Superior Court. The parties are currently scheduled to appear before the court on May11, 2010 in order to address a proposed briefing schedule. ERISA Litigation On March2, 2010 the U.S. District Court for the Central District of California dismissed the entire lawsuit without prejudice. Plaintiffs filed an amended complaint on March23, 2010. Amgen then filed another motion to dismiss on April20, 2010. Oral argument on the motion to dismiss is scheduled for June14, 2010. Qui Tam Actions A hearing on the motions to dismiss was held by the Massachusetts District Court on March11, 2010. The Massachusetts District Court granted the motion to sever and stay the retaliation claims, and Amgen and relator entered into a stipulation regarding the same. In a written ruling on April23, 2010, the Massachusetts District Court dismissed all of the claims of the relator, on behalf of the federal government and the two states, and all of the claims of the remaining states, for failure to state valid legal grounds upon which relief could |
