Amgen: The Quarter Where New Growth Engines Begin to Drown Out the Noise of Patent Expirations

Published: 2026-05-01 06:45:05 ET AMGN

The California-based biotech giant reported a solid first quarter of 2026, marked by a revenue increase to 8.62 billion USD, up from 8.15 billion USD a year earlier, and net income of 1.82 billion USD. Adjusted EPS came in at 5.15 USD, beating market expectations which sat around 4.76 to 4.77 USD according to cited sources. However, the lukewarm stock market reaction serves as a reminder that the Amgen story is no longer just about beating consensus: it is now about proving that growth drivers can absorb the erosion of its legacy franchises.

Tommy Douziech

Published on 05/01/2026 at 06:45 am EDT

The most convincing signal comes from the composition of growth. Product sales rose by 4%, driven by a 9% increase in volumes, offset by a 2% decline in net prices and a 2% inventory drawdown. Commercial momentum is present, but it has not fully translated into top-line revenue, which adds nuance to a superficial reading of the quarter. Management highlighted six growth engines that generated 5.6 billion USD in sales, accounting for nearly 70% of product sales, with an aggregate increase of 24%. This is likely the key takeaway from the release: Amgen is beginning to demonstrate that it can navigate a phase of patent expirations without a sharp break in its trajectory.

Repatha is the prime example of this shift. The cholesterol treatment saw sales jump 34% to 876 million USD, exceeding expectations. Momentum is driven by cardiovascular prevention, particularly in high-risk patients, and a ramp-up in general medicine. Management noted a 44% increase in new prescriptions in the United States, with clinical support bolstered by VESALIUS-CV data, notably a 31% reduction in cardiovascular events in a subgroup of high-risk diabetic patients. Direct commercialization via AmgenNow remains marginal, with 8,000 to 9,000 patients involved, but it demonstrates the group's commitment to streamlining access to certain products.

Conversely, Prolia and XGEVA serve as reminders of the cost of maturity. Combined sales fell by 32%, while Prolia alone dropped 34% to 727 million USD, significantly below expectations. Management warned that erosion is expected to accelerate over the remainder of the year due to biosimilar competition. This is the main operational weakness of the quarter: while growth drivers exist, competitive pressure on legacy franchises remains heavy.

The pipeline, however, provides substance to the long-term narrative. MariTide, a candidate for obesity, type 2 diabetes, and associated pathologies, is becoming the most discussed strategic asset. Amgen is launching Phase III studies on weight loss maintenance and the transition from weekly GLP-1s to administration every eight or twelve weeks. The message is clear: the group seeks to differentiate itself through injection frequency. Management remains cautious regarding commercial ambitions while mentioning a treatment potentially administered only four to six times a year. The key point to watch will be tolerability, particularly gastrointestinal, although Amgen claims that a three-step escalation reduces the nausea and vomiting previously observed.

The release also contains some friction points: Tavneos, with sales growing 32% to approximately 114-119 million USD, faces a proposed withdrawal of authorization by the FDA. Amgen defends its benefit-risk profile, but the issue introduces a visible regulatory risk. On the financial side, the non-GAAP operating margin of 45% remains robust, despite a 16% increase in R&D spending and high industrial investments, notably to prepare for MariTide. The upward revision of annual targets to 37.1-38.5 billion USD in revenue and 21.70-23.10 USD in adjusted EPS is positive but limited.

Repatha, UPLIZNA, TEPEZZA, IMDELLTRA, EVENITY, and biosimilars are gradually taking over, while MariTide crystallizes the major growth option. The market may judge the guidance raise as too modest; it would be wrong to ignore the industrial message: Amgen has not yet won its transition bet, but the first quarter shows it has more ammunition than it appears.