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

Published: 2026-05-01 14:43:56 ET AMGN

The California-based biotech giant reported solid Q1 2026 results, with revenue up to $8.62bn, from $8.15bn a year ago, with net income reaching $1.82bn. Adjusted EPS came in at $5.15, beating market expectations of around $4.76 to $4.77 according to cited sources. However, the lukewarm stockmarket reaction serves as a reminder that the Amgen story is no longer just about beating the 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 02:43 pm EDT

The most compelling 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 evident, but it has not fully translated into top-line revenue, adding nuance to a superficial reading of the quarter. Management highlighted six growth engines that generated $5.6bn  in sales, accounting for nearly 70% of product sales, with an aggregate increase of 24%. This is perhaps 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 $876m, 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 US, supported by clinical data from VESALIUS-CV, 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 $727m, significantly below expectations. Management warned that erosion is expected to accelerate over the remainder of the year due to biosimilar competition. This is the primary operational weakness of the quarter: while growth drivers exist, the 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 related 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 8 or 12 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 metric to watch will be tolerability, particularly gastrointestinal, although Amgen claims that a three-step titration reduces the nausea and vomiting previously observed.

The release also contains some friction points: Tavneos, with sales up 32% to about $114m-$119m, faces a proposed withdrawal of authorization by the FDA. Amgen defends its benefit-risk profile, but the issue introduces 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 $37.1bn-$38.5bn in revenue and $21.70-$23.10 in adjusted EPS is positive but modest.

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 conservative; it would be a mistake 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.