AMGN Q2 Deep Dive: Volume Growth, Pipeline Progress, and Guidance Raise Meet Investor Skepticism

Biotech company Amgen (NASDAQ:AMGN) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 9.4% year on year to $9.18 billion. The company’s full-year revenue guidance of $35.5 billion at the midpoint came in 0.5% above analysts’ estimates. Its non-GAAP profit of $6.02 per share was 14.1% above analysts’ consensus estimates.

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StockStory’s Take

Amgen’s second quarter results outpaced Wall Street’s expectations, with management emphasizing strong demand for its portfolio and notable volume growth, particularly in general medicine, rare diseases, and oncology. CEO Robert Bradway highlighted that 15 products achieved double-digit sales growth, attributing momentum to broad-based execution and continued expansion in both established and emerging therapeutic areas. However, despite these operational highlights, management acknowledged the ongoing industry-wide pricing pressures and biosimilar competition, especially impacting legacy products like Prolia. The market’s negative reaction may reflect investor caution over the sustainability of volume-driven growth amid evolving pricing and reimbursement dynamics.

Looking forward, Amgen’s updated guidance is driven by expected continued demand for its key brands and the advancement of late-stage pipeline assets, notably MariTide for obesity and new indications for UPLIZNA. Management cited “broad investigator enthusiasm” for ongoing Phase III studies and investment in artificial intelligence to accelerate research and commercialization. Still, executives cautioned that regulatory policy changes, pricing reforms, and incremental R&D expenses—particularly from business development—could influence margins and capital allocation. CFO Peter Griffith reiterated the company’s commitment to “rigorous financial discipline” while supporting pipeline innovation and global expansion.

Key Insights from Management’s Remarks

Management attributed the quarter’s results to volume-driven growth across diverse product lines, pipeline progress, and targeted investments in new therapies, while noting ongoing pricing pressures and biosimilar competition.

• General medicine expansion: Repatha and EVENITY continued to gain traction, with management crediting improved patient access, expanded prescriber bases, and direct-to-consumer campaigns for driving higher prescription volumes. EVENITY’s unique profile, addressing both bone building and loss, was highlighted as a differentiator in postmenopausal fracture prevention.
• Rare disease portfolio momentum: Sales in rare diseases grew rapidly, with UPLIZNA’s expanded indications—such as IgG4-related disease—and the ongoing TEPEZZA launch in Japan cited as growth contributors. The company stressed the early lifecycle stage of these assets, suggesting further runway ahead.
• Biosimilar and oncology strength: Amgen reported 40% growth in its biosimilars, underscoring portfolio breadth and successful launches like PAVBLU. The BiTE platform, including IMDELLTRA and BLINCYTO, was credited for redefining treatment standards in oncology, with IMDELLTRA gaining share in small cell lung cancer.
• AI and R&D investments: Management described ongoing investment in artificial intelligence to enhance productivity across research, development, and commercial operations. Phase III programs—including MariTide for obesity and olpasiran for cardiovascular risk—are top priorities, with capital expenditures supporting manufacturing scale-up.
• Industry policy and pricing headwinds: Executives acknowledged that U.S. healthcare pricing reform, biosimilar launches, and global regulatory shifts remain active headwinds. The company is engaging with policymakers to balance access, affordability, and innovation incentives.

Drivers of Future Performance

Management anticipates continued momentum from new product launches, pipeline advancement, and portfolio diversification, but flagged regulatory and pricing risks that could influence growth.

• Pipeline readouts and launches: The advancement of MariTide in obesity (with several Phase III studies underway), new cardiovascular indications for Repatha, and pending approvals for UPLIZNA and TEZSPIRE are expected to fuel growth. Management believes these assets could drive significant market expansion if upcoming trial results are positive.
• Biosimilar adoption and competition: Amgen expects biosimilars to remain a strong revenue contributor, especially as regulatory pathways potentially ease. However, executives noted that increased biosimilar competition—particularly for established brands—could pressure net selling prices and market share, impacting long-term profitability.
• Policy and reimbursement landscape: Ongoing U.S. and global pricing reforms, as well as evolving reimbursement models, represent key uncertainties. Management stated that the company’s advocacy efforts and focus on access will be central to mitigating potential headwinds from these external changes.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will focus on (1) clinical readouts from key late-stage pipeline assets, including MariTide and Repatha’s VESALIUS trial; (2) the pace of biosimilar adoption and its effect on pricing and market share; and (3) progress on new market entries for rare disease therapies and ongoing regulatory milestones. Execution on R&D investments and the impact of policy changes will also be closely monitored.

Amgen currently trades at $285, down from $300.30 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

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