Amgen Inc (AMGN) Q3 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

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Revenue: Increased 12% year over year to $9.6 billion. Volume Growth: Up 14% year over year. Non-GAAP Operating Margin: 47%. Non-GAAP R&D Growth: 31% year over year. Free Cash Flow: $4.2 billion in the third quarter. Debt Retired: $6.0 billion in 2025. Non-GAAP Tax Rate: 18.2%. Repatha Sales: $794 million, up 40% year over year. Avanity Sales: $541 million, up 36% year over year. Prolia Sales: $1.1 billion, up 9% year over year. Rare Disease Portfolio Sales: $1.4 billion, up 13% year over year. Biosimilar Portfolio Sales: $775 million, up 52% year over year. 2025 Revenue Guidance: $35.8 billion to $36.6 billion. 2025 Non-GAAP EPS Guidance: $20.60 to $21.40.

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Release Date: November 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Amgen Inc (NASDAQ:AMGN) reported a 12% year-over-year increase in revenues, reaching $9.6 billion, driven by strong performance across its key growth drivers. The company achieved a 14% volume growth, with 16 products delivering double-digit growth, showcasing the strength of its portfolio. Amgen Inc (NASDAQ:AMGN) launched 'Amgen Now,' a direct-to-patient platform, enhancing access to its medicines at competitive prices. The company is making significant investments in manufacturing and R&D, with over $3 billion planned for the US this year, supporting long-term growth. Amgen Inc (NASDAQ:AMGN) is advancing its pipeline with promising late-stage programs in obesity, cardiovascular disease, and rare diseases, indicating potential future growth.

Negative Points

Despite strong revenue growth, Amgen Inc (NASDAQ:AMGN) faces declining selling prices across the industry, which could impact future profitability. The company reported a non-GAAP operating margin of 47%, reflecting significant investments that may pressure margins in the short term. Amgen Inc (NASDAQ:AMGN) anticipates increased competition for its product Prolia, which could negatively impact future sales. The company is experiencing a higher non-GAAP tax rate, which increased by 4.8 percentage points year over year to 18.2%. Amgen Inc (NASDAQ:AMGN) faces challenges in the biosimilar market, with ongoing discussions about the effectiveness of the US biosimilar market and potential policy changes.

Q & A Highlights

Q: With Passa, you mentioned best in class in the context of a competitive landscape, and you also noted that the event rate for the Ocean A outcome study is lower than expected. Could you speak to your confidence in this program and what the event rate means for a base case readout? A: James Bradner, Executive Vice President, Research and Development, and Chief Scientific Officer, responded that their conviction remains strong due to the clear genetic association of LP little A with cardiovascular disease. He emphasized the best-in-class properties of Opaeran, including its administration frequency and safety profile. The Ocean A study is event-driven, and while they won't guide on the specific date, they are pleased with the study's conduct.

Story Continues

Q: Could you walk us through some of the puts and takes we should think about heading into 2026? A: Peter Griffith, Chief Financial Officer, Executive Vice President, highlighted the company's key growth drivers and the focus on research and development. He noted that they experienced a step change in R&D expenses over the last year but do not anticipate another incremental step change going forward. The company remains focused on achieving industry-leading margins while investing in innovation.

Q: How do you expect the Vesalius CV results to impact the market opportunity for Repatha? A: James Bradner explained that the Vesalius CV study addresses the prevention of first cardiovascular events, which is significant as 75% of myocardial infarctions are first events. The study demonstrated that Repatha provides additional benefit beyond statins, and they are excited to share the full results at the upcoming American Heart Association meeting.

Q: The FDA recently released new biosimilar guidance. Does this change your view on the business? A: Murdo Gordon, Executive Vice President - Global Commercial Operations, stated that the new guidance does not change their strategic focus on biosimilars. Amgen is well-positioned to compete effectively regardless of the guidance, and they continue to see biosimilars as a growth business.

Q: What are the top 2 or 3 pipeline cards that could be most impactful for Amgen in the next 6 to 12 months? A: James Bradner highlighted the Vesalius CV study, the development of Meltra and tarlatimab, and the promising results from the Delphi 303 study. He emphasized the potential impact of these developments on Amgen's pipeline and their excitement about the upcoming data.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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