AMGN Q1 Earnings Call: Product Pipeline and Margin Expansion Drive Outperformance

Biotech company Amgen (NASDAQ: AMGN) reported Q1 CY2025 results topping the market’s revenue expectations, with sales up 9.4% year on year to $8.15 billion. The company expects the full year’s revenue to be around $35 billion, close to analysts’ estimates. Its non-GAAP profit of $4.90 per share was 15% above analysts’ consensus estimates.

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StockStory’s Take

Amgen’s first quarter results were shaped by broad-based volume growth and new product launches across general medicine, rare diseases, inflammation, and oncology. Management highlighted the performance of 14 products with double-digit growth, as well as strong uptake of new biosimilars. CEO Robert Bradway emphasized, “We delivered multiple positive Phase III readouts, initiated four new Phase III studies, and launched three new products or indications.”

Looking ahead, Amgen’s full-year guidance centers on further execution in its late-stage clinical pipeline and continued momentum in recently launched therapies. CFO Peter Griffith noted increased R&D investment to support assets such as MariTide, a potential obesity therapy, and ongoing expansion in the biosimilars portfolio. Management also acknowledged uncertainties from tariffs and tax policy, stating the company’s manufacturing investments position it to adapt as needed.

Key Insights from Management’s Remarks

Amgen’s management attributed the quarter’s performance to the breadth of its product portfolio and significant progress in clinical development. Key growth areas included cardiovascular, bone health, rare disease, and oncology, with biosimilars delivering meaningful contributions.

• Broad product portfolio growth: Fourteen medicines delivered double-digit sales growth, spanning cardiovascular, bone health, rare disease, and oncology. Amgen’s biosimilars segment generated over $700 million in revenue, up 35% year over year.
• General medicine expansion: Products like Repatha and EVENITY benefited from improved patient access, expanded prescriber base, and direct-to-consumer initiatives. Management cited ongoing clinical trials targeting large, underserved populations in cardiovascular and obesity-related diseases.
• Rare disease launches: UPLIZNA launched as the first FDA-approved treatment for IgG4-related disease, with early physician adoption. TEPEZZA expanded internationally, including approvals and launches in Japan and a positive regulatory opinion in Europe.
• Oncology pipeline momentum: Bispecific T cell engagers such as BLINCYTO and IMDELLTRA showed continued adoption and positive clinical data. IMDELLTRA demonstrated survival benefits in small cell lung cancer, with new Phase III studies underway.
• Biosimilars market penetration: Recent biosimilar launches, including PAVBLU and WEZLANA, were met with positive reception from prescribers. The company’s approach focused on early U.S. launches and reliable supply to capture market share.

Drivers of Future Performance

Management’s outlook for the remainder of the year is anchored by ongoing clinical advancement and new launches, while cautioning about external factors such as tariffs and increased R&D investment.

• Pipeline advancement: Significant late-stage studies for therapies like MariTide in obesity and Olpasiran in cardiovascular disease are expected to drive future growth, with management increasing R&D spending to support these programs.
• Expanding biosimilars: New biosimilar launches and further commercialization efforts are anticipated to diversify revenue streams and address pricing pressures in core therapy areas.
• External policy risks: Management flagged potential headwinds from evolving tax and tariff policies, emphasizing Amgen’s historical ability to adapt through manufacturing investments and operational agility.

Top Analyst Questions

• Terence Flynn (Morgan Stanley): Asked about key data expectations for MariTide at the ADA meeting. Management said data would focus on 52-week efficacy and tolerability but not new long-term results.
• Salveen Richter (Goldman Sachs): Inquired about UPLIZNA’s commercial strategy for IgG4-related disease. Amgen outlined targeted outreach to rheumatologists and plans for broader physician engagement.
• Michael Yee (Jefferies): Pressed on MariTide’s tolerability and competition from oral obesity drugs. Management expressed confidence in design for efficacy and tolerability, with ongoing development of oral options.
• Trung Huynh (UBS): Questioned Repatha’s position amid new competition. Amgen stressed product profile advantages and improved patient access, with room for multiple therapies in the market.
• David Amsellem (Piper Sandler): Asked what will drive growth for TEPEZZA. Management pointed to expanded prescriber education and international launches, with potential future benefit from a subcutaneous form.

Catalysts in Upcoming Quarters

In coming quarters, the StockStory team will monitor (1) progress and data releases from late-stage clinical trials, especially for MariTide and bemarituzumab; (2) commercial adoption and prescriber uptake of newly launched therapies like UPLIZNA in IgG4-related disease and PAVBLU in biosimilars; and (3) updates on international expansion of key rare disease drugs. Execution in R&D and navigating policy changes will also be important indicators of Amgen’s trajectory.

Amgen currently trades at a forward P/E ratio of 13×. At this valuation, is it a buy or sell post earnings? Find out in our free research report.

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