Peter Griffith
Executive Vice President And Chief Financial Officer at Amgen
Thank you, Bob. The CFO organization welcomes ChemoCentryx to Amgen and we're excited to help enable the teams to serve patients. We are pleased with our performance this quarter and we're on track to deliver against our long-term objectives. We continue to see the company successfully navigate through foreign exchange headwinds, increasing interest rates, inflation, supply chain pressures and the war in Europe all while working through COVID variants surges. We're grateful for the hard work of our 24,000 mission-driven colleagues at Amgen and serving our millions of patients around the globe. I will present our second quarter financial results before discussing our 2022 guidance. The financial results are shown on slide six of the slide deck.
We effectively executed in the second quarter with year-over-year volume driven revenue growth of one percent and product sales growth of three percent excluding the impact of foreign exchange, revenue growth and product sales growth for three percent and five percent respectively. Our EPS growth of a 163% versus our recast Q2, 2021. It's favorably impacted by the $1.5 billion Five Prime In-process R&D expense in 2021, excluding the $1.5 billion charge for Five Prime, Non-GAAP EPS grew six percent. Turning to product sales. Strong volume growth of 10% was driven by Repatha, Prolia, LUMAKRAS and EVENITY, as well as a number of other products in the portfolio. Year-over-year volume growth was partially offset by declines in net selling price of six percent and foreign exchange headwinds of two percent.
Our established product portfolio generated almost one billion dollars of product sales and continues to deliver strong cash flows to fund internal and external innovation, just like the ChemoCentryx deal today. Transitioning to our biosimilars, AMGEVITA remains the most prescribed adalimumab biosimilar in Europe and we are preparing and excited for the U.S. launch of this product in January 2023. Other revenues of about $300 million decreased 24% year-over-year, primarily driven by lower COVID-19 antibody collaboration revenues versus Q2, 2021. Non-GAAP operating expenses decreased year-over-year, driven primarily by the $1.5 billion Five Prime related expense in 2021 that I previously mentioned. Recall from our Q1 discussion that we've updated our non-GAAP policy to no longer exclude such expenses from our non-GAAP results in accordance with guidance issued by the SEC this year.
For comparison purposes, our 2021 non-GAAP operating expenses will now include two items that were previously excluded. First, the $1.5 billion recorded in Acquired In-Process R&D associated with Five Prime in Q2, 2021, and next secondly, And next, secondly $400 million recorded in R&D related to an upfront payment to license rights to AMG 451 from Kyowa Kirin Corporation in Q3, 2021. Excluding the impact of the Five Prime in-process R&D, $1.5 billion charge in Q2, '21, second quarter total non-GAAP operating expenses declined five percent year-over-year, reflecting continuous improvement driven by digitalization, process simplification and automation, which more than offset investments to advance our pipeline and support product launches on a non-GAAP basis cost of sales as a percent of product sales decreased 2.2 percentage points on a year-over-year basis to 14.7%, primarily due to lower COVID-19 antibody shipments and direct manufacturing costs, partially offset by evolving product mix.
Non-GAAP R&D spend in the second quarter decreased two percent year-over-year, primarily due to lower marketed product support, partially offset by higher spend in research and early pipeline. Non-GAAP SG&A expenses in the second quarter declined two percent year-over-year. We continue to focus on prioritizing key investments and activities while driving productivity. Non-GAAP other income and expenses were a net $410 million expense in Q2. This was driven by net interest expense and our share of BeiGene results as a result of our use of the equity method of accounting. We have a strong balance sheet, generates significant cash flow and retain significant financial flexibility to execute strategic business development opportunities. We continue to execute on our capital allocation priorities. First, today's announcement of the acquisition of ChemoCentryx is a great example of investing in the best innovation, whether internal or external.
Second, investing in our business through capital expenditures including for our new environmentally friendly facilities under construction in Ohio and North Carolina. Third, returning capital to shareholders through growing dividends, including a $1.94 per share in the quarter, representing a 10% increase from last year's quarter. And fourth, opportunistic share repurchases and while we had no share buybacks in the second quarter, Q1, 2022 at $6.3 billion. Let's turn to the outlook for the business for 2022. We are pleased with our progress through the first half of 2022 and we continue to be confident in the trajectories of our growth brands. For the full year, we now expect to absorb $500 million in foreign exchange headwinds against product sales based on recent foreign exchange rates, of which we absorb $200 million in the first half of the year, reflecting our effective execution today while considering the challenging foreign exchange dynamics, we are narrowing our 2022 revenue guidance range to $25.5 billion to $26.4 billion.
Our non-GAAP EPS range of $17 to $18 remains unchanged. This range encompasses foreign exchange headwinds of approximately three percent or $0.45 for the full year based on recent foreign exchange rates. Of that $0.45 we experienced approximately $0.20 in the first half of the year. So we anticipate an additional $0.25 in foreign exchange headwinds against EPS in the second half of the year. Our non-GAAP EPS range also encompasses cost associated with our acquisition of ChemoCentryx, both foreign exchange and ChemoCentryx will influence our performance within the range. I'll share a few additional points to consider for the remainder of 2022 with a particular focus on how these trends are likely to impact Q3 and Q4. First, we expect foreign exchange headwinds against product sales in Q3 and Q4 of approximately a $50 million in each quarter for a total of $300 million for the second half of the year.
These headwinds are most pronounced in brands with significant ex-U.S. scale such as Prolia, Aranesp, AMGEVITA, Vectibix and XGEVA. Second, anticipated negative pricing trends for MVASI and KANJINTI are expected to continue in the second half of the year and we expect quarter over quarter product sales declines in those products for the remainder of the year. We expect KANJINTI sales for the year of roughly $300 million and MVASI sales for the year of roughly $850 million. As we've noted, growth in Biosimilars will be driven by the addition of new products and geographies and we look forward to being the first Biosimilar, the HUMIRA to launch in the United States with Amgevita in January, 2023. Third, we expect Q3 Enbrel product sales to approximate Q2 Enbrel product sales.
Fourth, for the full year, we now expect Neulasta product sales to be between $1.0 billion to $1.1 billion. This is a change from our previous range of $0.9 billion to $1.0 billion. We expect a negative pricing trends for Neulasta will continue in the second half of the year. Fifth, although we expect that net impact of these factors will result in Q3 revenues and EPS lower than Q2. I would reiterate that our full year EPS guidance remains unchanged at $17 to $18. We now expect other revenue for 2022 to be in the range of $1.4 to $1.6 billion versus our prior range of $1.4 to $1.7 billion. Our expectations for total non-GAAP operating expenses for 2022 are unchanged from the last time we spoke. We continue to expect that operating expenses will increase in the second half of the year versus the first half of this year, including important investments in our pipeline as well as both current and upcoming launches.
Again including Amgevita in January, '23 and increasing R&D spend in the third and the fourth quarter. We continue to expect 2022 non-GAAP operating margin as a percent of product sales to be roughly 50%. We continue to expect non-GAAP cost of sales as a percent of product sales to be 15.5% to 16.5%. Our expectations for non-GAAP R&D in 2022 remain unchanged. Based on our recast 2021 results which now include $400 million of expense in Q3, related to the license with KKC for AMG 451. Our expected 2022 non-GAAP R&D expense now equates to a decrease of 46% year-over-year. We expect non-GAAP SG&A spend to be flat to slightly down year-over-year as a percent of product sales. We continue to expect other income and expenses to be in the range of $1.6 to $1.8 billion with an increase in Q3 over the run rate of the first two quarters due to both increasing interest rates, and our share of BeiGene's results.
And finally, for the full year, we anticipate a non-GAAP tax rate range of 14.0% to 15.0%, up from our prior guidance of 13.5% to 14.5%. We will effectively execute throughout the remainder of 2022, despite the continuing headwinds we will continue investing in the best innovation. We look forward to the launch of Amgevita in January, '23 driving the launch of the Tezspire and Lumakras progressing our pipeline, successfully integrating ChemoCentryx and delivering on our 2030 objectives.
This concludes the financial update. I'll turn it over to Murdo. Murdo?
