Amgen Inc.

🇺🇸NASDAQ Global Select
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Amgen Inc. stock analysis AMGN overview
Bullish +75

Amgen Q1 Earnings Call Highlights

📈 Amgen reported a strong Q1 with its six key growth drivers growing collectively by 24% and accounting for nearly 70% of total sales.

💊 Repatha sales reached $876 million, up 34%, driven by updated guidelines and positive subgroup data showing reduced cardiovascular events in high-risk patients.

🦴 Evenity sales increased 27% to $562 million globally, holding a 65% share of the U.S. bone builder market with strong uptake in Japan.

💨 TEPEZZA sales climbed 29% to $490 million as endocrinology prescribing grew, supported by new Phase III data for a subcutaneous on-body injector.

🧬 Tepezza's rare-disease portfolio, led by Uplizna which surged 188%, saw total category growth of 25% to $1.2 billion across all approved indications.

📉 Prolia and Xgeva combined sales fell 32% year-over-year to $1.1 billion due to expected erosion from biosimilar competition through 2026.

💉 Innovative oncology portfolio grew 25% to $1.8 billion, highlighted by IMDELLTRA administration at over 1,800 U.S. sites and Bincyto growth.

🧬 Biosimilar sales rose 14% to $835 million, led by Pavblu which contributed $280 million with a prefilled syringe format valued by specialists.

💵 Repatha now has a cash-pay option available for approximately 8,000-9,000 patients at $239/month, though management notes this represents a small portion of volume.

🔬 Chief Scientific Officer Jay Bradner detailed the Phase III MariTide obesity program expansion into long-term maintenance dosing schedules (monthly/quarterly) to reduce treatment burden.

⚠️ Management raised full-year 2026 revenue guidance to $37.1–$38.5 billion and non-GAAP EPS to $21.70–$23.10 despite ongoing IRS audit uncertainties.

🛡️ Executives maintain a disciplined R&D strategy led by MariTide, aiming for products in 2026 to offset patent expirations and competitive pressures.

🗓️ A new Phase III switching study was launched to evaluate patients switching from weekly GLP-1s to MariTide under various dosing intervals.

🇯🇵 TEPEZZA plans additional global launches following its 2025 introduction in Japan, supported by growing prescriber interest and increased endocrinology adoption.

🚀 CEO Robert Bradway reiterated that 2026 is a "springboard year" designed to sustain growth through expanding franchises despite market headwinds.

Bullish Signals
  • Amgen delivered a strong Q1 with six key growth drivers accounting for nearly 70% of sales and collectively growing 24% year-over-year.
  • The rare-disease portfolio surged 25% to $1.2 billion, led by Uplizna which skyrocketed 188% to $262 million driven by strong uptake across all three approved indications.
  • Repatha sales reached $876 million, up 34%, bolstered by positive subgroup analysis showing a 31% reduction in cardiovascular events for high-risk patients with diabetes at the American College of Cardiology meeting.
  • Evenity sales rose 27% to $562 million with U.S. sales increasing 35% and maintaining a dominant 65% share of the U.S. bone builder market.
  • TEPEZZA sales climbed 29% to $490 million, supported by growth in the chronic rhinosinusitis indication and a new Phase III data point for an on-body injector supporting subcutaneous administration.
  • Innovative oncology portfolio sales grew 25% to $1.8 billion, with IMDELLTRA administered at over 1,800 U.S. sites and BLINCYTO sales up 12% to $415 million.
  • Biosimilars revenue increased 14% to $835 million, highlighted by Pavblu delivering $280 million in the quarter due to its prefilled syringe format and supply reliability.
  • Amgen raised full-year 2026 guidance to $37.1–$38.5B in revenues with a non-GAAP EPS target of $21.70–$23.10, signaling management confidence despite potential tax headwinds.
  • The MariTide Phase III program was expanded to include long-term maintenance dosing and a 300-patient switching study, reporting improved tolerability with flexible monthly/8-week/quarterly schedules.
  • Amgen anticipates accelerated pressure from biosimilars remains in line with expectations for Prolia and Xgeva, allowing management to focus resources on high-growth franchises.
Risk Factors
  • Ongoing IRS audits and tax litigation could materially affect future results if adjustments are sustained.
  • Prolia and Xgeva sales declined 32% year-over-year, with Amgen warning of accelerated pressure through the rest of 2026 due to increasing biosimilar competition.
  • TEPEZZA growth was partially offset by a 'burn in channel inventory'.
Full Analysis
Amgen reported a strong first quarter with revenue driven significantly by its six key growth drivers, which collectively generated nearly 70% of sales and grew 24% year-over-year. Standout performance was seen in its core franchise products, with Repatha sales reaching $876 million, up 34% to an annual run rate that management expects will sustain momentum through patent expiry; Evenity reached $562 million (up 27%), maintaining a 65% share of the U.S. bone builder market; and TEPEZZA sales climbed 29% to $490 million as demand grew in pulmonology and allergy, supported by new Phase III data for an on-body injector. The rare-disease portfolio also saw robust growth, rising 25% to $1.2 billion, largely propelled by Uplizna which surged 188% to $262 million as it solidified its position in neuromyelitis optica spectrum disorder. Despite the positive product momentum, Amgen noted that certain franchises face headwinds from biosimilar competition and patent expirations. Prolia and Xgeva combined sales fell 32% year-over-year to $1.1 billion, with erosion expected to accelerate through 2026. Chief Commercial Officer Murdo Gordon clarified that while the "AmgenNow" cash-pay program is seeing interest in Repatha at $239 per month involving approximately 8,000 to 9,000 patients, this component represents a relatively small fraction of total volumes. The company continues to emphasize disciplined execution in late-stage R&D and product launches to offset these pressures, with 16 products posting double-digit sales growth and 17 annualizing at over $1 billion in sales. Looking forward to fiscal 2026, Amgen raised its full-year guidance to revenue between $37.1 billion and $38.5 billion and non-GAAP EPS of $21.70 to $23.10, maintaining an expected non-GAAP operating margin of around 45%. CEO Robert Bradway described 2026 as a "springboard year" where rapidly growing products will help offset the impact of patent expirations and competitive pressures. However, management added a significant caveat that ongoing IRS audits and tax litigation could materially affect future results if adverse adjustments are sustained. In research highlights, Amgen expanded its Phase III MariTide program for obesity to include long-term maintenance dosing schedules and a 300-patient switching study from weekly GLP-1s, with early data suggesting improved tolerability through a three-step dose escalation.