Amgen Inc.

What they do

Amgen discovers, develops, manufactures, and commercializes human therapeutics. Its portfolio spans oncology, cardiovascular, bone health, inflammation, and rare disease. Products include Repatha, Prolia, EVENITY, Otezla, ENBREL, and TEPEZZA. The company operates primarily in the U.S. and rest-of-world (ROW) markets.

Revenue drivers

• Repatha (evolocumab) — A PCSK9 inhibitor for cholesterol; 2025 global sales were $3,016M (U.S. $1,663M, ROW $1,353M), up 36% year-over-year. In Q2 2026 sales were $953M, up 37%.
• EVENITY (romosozumab-aqqg) — A bone-building therapy for osteoporosis; 2025 sales were $2,100M (U.S. $1,600M, ROW $500M), up 34%. Q2 2026 sales were $714M, up 38%, driven by volume growth.
• Prolia (denosumab) — A RANKL inhibitor for bone disorders; 2025 sales were $3,016M (U.S. $1,663M, ROW $1,353M), up 36% year-over-year. Q2 2026 sales were $759M, down 32% as biosimilar competition erodes volume and price.
• TEPEZZA (teprotumumab-trbw) — A treatment for thyroid eye disease; Q2 2026 sales were $576M, up 14% year-over-year, with U.S. sales of $520M and ROW of $56M.

Recent performance

In Q2 2026, total revenues increased 10% to $10.1B, with product sales up 9% on volume growth. GAAP EPS rose to $4.37 from $2.65, while non-GAAP EPS rose 4% to $6.29. The company generated $3.5B of free cash flow in Q2 2026 versus $1.9B a year earlier, reflecting the final repatriation tax payment in 2025 and business performance. Six key growth drivers grew 26% year-over-year, generating nearly 70% of Q2 product sales.

Strategy

Amgen is driving growth through its six key products, including Repatha, EVENITY, TEPEZZA, and KRYSTEXXA, and expanding indications. Management emphasizes advancing the pipeline through Phase 3 and beyond. The company is also investing in manufacturing resilience and supply chain risk mitigation, including managing sole-supplier dependencies and tariff impacts. Regulatory and reimbursement pressures, such as Medicare price setting for Otezla, are being managed as part of ongoing strategy.

Risks

• Prolia biosimilar competition — Multiple biosimilars launched in the U.S. and ROW after patent expirations, causing accelerated sales erosion—Q2 2026 Prolia sales down 32% year-over-year.
• Medicare price setting and reimbursement pressure — Otezla was selected by CMS for Medicare price setting starting 2027, and ENBREL net selling price fell 36% in 2025 due to Part D redesign and increased 340B mix.
• Regulatory and compliance exposure — Stringent FDA and global regulations govern all aspects of product development and marketing; failures can lead to significant penalties or delays.
• Supply chain and tariff risks — Amgen relies on sole-source third-party suppliers for some raw materials and devices, and is actively managing tariff impacts on its supply chain.

Outlook

Management expects Repatha sales to follow historical seasonality with lower Q1 sales. For 2026, they project mid-single-digit net selling price declines for Repatha. Prolia sales are expected to continue eroding as more biosimilars enter the market. They also anticipate Otezla net price declines from Medicare setting beginning in 2027.