Core Points - Amgen's Board of Directors declared a dividend of $2.52 per share for Q1 2026, payable on March 6, 2026, to stockholders of record as of February 13, 2026 [1] - Amgen is a leader in biotechnology, focusing on innovative medicines for serious diseases, with a strong pipeline targeting cancer, heart disease, osteoporosis, inflammatory diseases, and rare diseases [2] - The company has received multiple accolades, including being named one of the "World's Most Innovative Companies" by Fast Company and one of "America's Best Large Employers" by Forbes [3] Company Overview - Amgen has over 40 years of experience in the biotechnology industry and continues to leverage technology and human genetic data for innovation [2] - The company is part of the Dow Jones Industrial Average and the Nasdaq-100 Index, highlighting its significance in the market [3] Contact Information - For further inquiries, Amgen's media contact is Elissa Snook at 609-251-1407, and investor contact is Casey Capparelli at 805-447-1746 [8]

Core Insights - Amgen Inc. is a leading biotechnology company focused on innovative therapies for serious illnesses, competing with other biotech firms like Biogen and Gilead Sciences [1] - The company has seen increased institutional investment, indicating strong confidence from investors [2][3][6] Institutional Investment - Cerity Partners LLC increased its holdings in Amgen by 4.2%, now owning 423,019 shares valued at approximately $118 million, representing about 0.08% of Amgen's total market value [2] - Brighton Jones LLC raised its stake in Amgen by 23.5%, owning 27,468 shares valued at $7.2 million [3] - Chicago Partners Investment Group LLC increased its holdings by 21.1% during the first quarter, reflecting a broader trend of institutional interest in Amgen [3] Stock Performance - Amgen's current stock price is $324.72, reflecting a decrease of approximately 1.57%, with a trading range between $322.02 and $329.67 for the day [4] - Over the past year, Amgen's stock has experienced significant volatility, reaching a high of $346.38 and a low of $253.30 [4] - The company's market capitalization is approximately $174.85 billion, underscoring its substantial presence in the biotechnology sector [5][6] Trading Activity - The trading volume for Amgen on the day is 961,888 shares, indicating active investor interest [5]

Core Insights - The 2025 Medicare negotiation results indicate a significant and ongoing impact on the innovative drug industry, with expectations of continued price reductions rather than a one-time event [3][8] - The second round of negotiations confirmed that high discount rates will persist, reshaping the industry's operational landscape and investor expectations [8][20] Group 1: Medicare Negotiation Outcomes - The second round of negotiations involved 15 high-cost drugs, with price reductions reaching up to 85%, and 11 drugs seeing discounts over 50% [5][8] - Notable drugs affected include Ozempic, which saw a price drop from $959 to $274 per month, representing a 71% reduction, saving patients approximately $8,220 annually [19][20] - The consistency in high discount rates between the first and second rounds signals a shift towards a systematic approach to drug pricing reform [8][18] Group 2: Industry Implications - The innovative drug industry's business model is being fundamentally rewritten, with lifecycle values of mature drugs entering a "compression era" due to systematic price reductions [22][24] - The commercialization timeline for innovative drugs is being forced to accelerate, requiring companies to maximize revenue in the early years post-launch [24][26] - The valuation of innovative drugs is shifting from "story pricing" to "cash flow pricing," emphasizing immediate revenue generation over long-term high pricing [26][30] Group 3: Future Landscape - The second round of negotiations has clarified the future regulatory environment, reducing uncertainty and allowing companies to plan around stable policy parameters [29][30] - The focus of competition is shifting back to the core aspects of innovation, such as product quality, clinical differentiation, and commercialization capabilities [30][31] - The industry is entering a new phase characterized by efficiency, speed, and differentiation, which may lead to a healthier and more transparent market for truly valuable innovations [30][31]

Market Overview - The global Peptide Therapeutics Market was valued at USD 46.04 billion in 2024 and is projected to reach USD 82.19 billion by 2032, with a CAGR of 7.51% from 2025 to 2032 driven by demand for targeted medications in oncology, metabolic diseases, and infectious diseases [1][17]. U.S. Market Insights - The U.S. peptide therapeutics market was valued at USD 20.36 billion in 2024 and is expected to grow to USD 35.71 billion by 2032, with a CAGR of 7.27% during the same period, supported by significant R&D expenditure and regulatory frameworks [2]. Technological Advancements - Innovations in peptide synthesis and drug delivery technologies, such as solid-phase peptide synthesis (SPPS) and liquid-phase peptide synthesis (LPPS), are enhancing manufacturing efficiency, purity, and scalability [4]. - Advances in delivery platforms, including sustained-release formulations and nanoparticles, are improving the stability and usability of peptide medications [4]. Market Challenges - High production costs and complex manufacturing processes pose challenges for the development of peptide therapeutics, as synthesis and purification require expensive equipment and high-purity reagents [5]. Market Segmentation By Application - The metabolic disorders segment held a 26.2% market share in 2024, driven by the prevalence of diseases like type 2 diabetes and obesity, while the pain segment is expected to grow at the highest CAGR due to rising chronic pain disorders [7]. By Therapeutics Type - The innovative segment dominated the market in 2024, reflecting the demand for high-activity and targeted treatment options [8]. By Type of Manufacturers - The in-house segment accounted for 65.25% of the market share in 2024, as major companies prefer control over the drug development process, while the outsourced segment is anticipated to grow at the highest CAGR [9]. By Route of Administration - The parenteral route led the market in 2024 due to poor oral bioavailability of most peptides, with alternative delivery methods expected to grow at the highest CAGR [10]. By Synthesis Technology - The recombinant DNA technology segment held a 64.3% market share in 2024, favored for its ability to produce long and sustained peptides of higher purity [11]. Regional Insights - North America dominated the peptide therapeutics market with a 58.1% share in 2024, attributed to advanced clinical trials and a developed pharmaceutical sector, while the Asia Pacific region is expected to grow significantly due to increased healthcare expenditure and chronic disease prevalence [12]. Key Companies - Major companies in the peptide therapeutics market include Eli Lilly and Company, Amgen Inc., Pfizer Inc., Takeda Pharmaceutical Company Limited, AstraZeneca plc, and Sanofi S.A. [13][18].

Core Insights - Amgen reported strong Q3 2025 earnings, with adjusted earnings of $5.64 per share, surpassing the Zacks Consensus Estimate of $5.00, and total revenues of $9.6 billion, exceeding the estimate of $8.9 billion, reflecting a 12% year-over-year increase [2][3] Financial Performance - Total product revenues increased by 12% year-over-year to $9.17 billion, driven by a 14% rise in volume, although partially offset by a 4% decline in pricing [3] - Other revenues rose by 19.3% year-over-year to $420 million, primarily due to higher royalty income [3] - Adjusted operating margin decreased by 2.5 percentage points to 47.1%, with operating expenses increasing by 18% to $5.25 billion [22] Key Product Performance - Prolia revenues reached $1.14 billion, up 9% year-over-year, significantly exceeding the Zacks Consensus Estimate of $911 million [6] - Evenity sales grew by 36% year-over-year to $541 million, surpassing the Zacks Consensus Estimate of $519 million [7] - Repatha generated revenues of $794 million, a 40% increase year-over-year, beating the Zacks Consensus Estimate of $720 million [7] - Biosimilar portfolio sales surged by 52% year-over-year to $775 million [5] Guidance and Outlook - Amgen raised its 2025 revenue and earnings outlook, expecting total revenues between $35.8 billion and $36.6 billion, and adjusted earnings per share in the range of $20.60 to $21.40 [24] - Adjusted operating margin is anticipated to be around 45%, with R&D expenses expected to grow at a mid-20s percentage rate year-over-year [25] Pipeline Developments - Enrollment has been completed in two phase III studies for MariTide, with approximately 5,000 adults enrolled [27] - Ongoing enrollment in two other phase III studies for atherosclerotic cardiovascular disease and heart failure [28]

Core Insights - The biotech sector experienced a decline at the beginning of December, with the iShares Biotechnology ETF (IBB) falling by 2.14% and the State Street SPDR S&P Biotech ETF (XBI) dropping by 2.69% on a recent trading day [2]. Group 1 - The Biotech Forum, led by an experienced market analyst with over 13 years in the field, focuses on identifying high-potential biotech stocks and offers a model portfolio of 12-20 selected stocks [2]. - The forum provides live discussions on trade ideas, weekly research updates, and market commentary, aiming to assist investors in navigating the biotech sector [2].

Group 1 - The company is represented by a full team, including the Executive VP & CFO and the Treasurer, indicating a strong leadership presence at the event [1] - The CFO begins to address a question, suggesting engagement with stakeholders and transparency in communication [1] - There is an indication of collaboration among team members, as the CFO plans to pass the discussion to another colleague for further insights [1]

Core Insights - Amgen's mission focuses on discovering, developing, manufacturing, and delivering innovative medicines for serious illnesses globally [2] - The company is experiencing strong momentum with a positive long-term growth outlook driven by its diverse therapeutic areas [3] Financial Performance - Amgen reported a 10% revenue growth for the first nine months ending in September, with product sales growing by 11% [4] - The growth was primarily driven by a 14% increase in volume, with 12 products achieving double-digit growth and 14 products annualizing over $1 billion [4] - In the third quarter, 16 products exhibited double-digit growth compared to the previous year, indicating robust business momentum [4] Strategic Outlook - The company is preparing for full-year competition related to its products Prolia and XGEVA, indicating a proactive approach to market challenges [5]

Market Performance - Stocks showed a positive trend with the Dow increasing by 408.44 points or 0.9% to 47,882.90, the Nasdaq rising by 40.42 points or 0.2% to 23,454.09, and the S&P 500 climbing by 20.35 points or 0.3% to 6,849.72 [1] - The Dow's gains were significantly influenced by UnitedHealth (UNH), which spiked by 4.7%, along with strong performances from Goldman Sachs (GS), McDonald's (MCD), and Amgen (AMGN) [2] Employment Data - A report from ADP indicated a surprising decrease in private sector employment by 32,000 jobs in November, contrasting with an expected increase of 10,000 jobs [3] - This decline followed an upwardly revised increase of 47,000 jobs in October, highlighting a shift in labor market dynamics [3] Federal Reserve Outlook - The employment data has contributed to optimism regarding a potential interest rate cut by the Federal Reserve, with an 89.0% chance indicated for a quarter-point reduction at the upcoming monetary policy meeting [4] - Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management, emphasized the importance of focusing on the weakening labor market over inflation concerns [5] Service Sector Activity - The Institute for Supply Management reported an unexpected increase in the services PMI to 52.6 in November, surpassing economists' expectations of a decline to 52.1 [6] - This PMI reading is the highest since February, indicating growth in the service sector [7] Sector Performance - Oil service stocks surged by 3.7% due to a rebound in crude oil prices, reaching a ten-month closing high [7] - Airline stocks also showed strength, with the NYSE Arca Airline Index increasing by 2.7% to its best closing level in nearly three months [7] - Other sectors such as steel, financial, and housing stocks experienced considerable gains, while computer hardware stocks faced notable declines [8] International Markets - In the Asia-Pacific region, stock markets displayed mixed results, with Japan's Nikkei 225 Index rising by 1.1% while China's Shanghai Composite Index fell by 0.5% and Hong Kong's Hang Seng Index dropped by 1.3% [9] - Major European markets also ended mixed, with the French CAC 40 Index up by 0.2%, while the German DAX Index and the U.K.'s FTSE 100 Index both decreased by 0.1% [9] Bond Market Reaction - Treasuries moved higher in response to the private sector jobs data, leading to a decrease in the yield on the benchmark ten-year note by 2.9 basis points to 4.057% [10]

Financial Data and Key Metrics Changes - The company reported a 10% revenue growth through the first nine months of the year, with product sales growth at 11% driven by a 14% volume growth [9][10] - In Q3, revenue growth was 12%, also driven by 14% volume growth, indicating strong momentum in the business [10] - Non-GAAP research and development expenses increased by 31% year over year in Q3, with a total of approximately $200 million spent on business development [12] Business Line Data and Key Metrics Changes - Repatha experienced a 30% year-over-year growth over the first nine months, with significant potential for future growth due to low penetration rates in the PCSK9 therapy market [13] - Evenity also grew by 30% year over year, holding a 60% market share in the U.S. bone builder market, with a large untapped patient population [14] - Tezspire achieved a remarkable 50% growth year over year, reaching $1 billion in sales in the U.S. for severe asthma [14] - The rare disease portfolio is annualizing at nearly $5 billion, growing 12% year over year, with Uplizna growing 50% year over year [15] - The innovative oncology segment grew by 11% year over year, driven by products like Blincyto and Imdeltra [15] Market Data and Key Metrics Changes - The company noted that the penetration rates for PCSK9 therapy remain low, indicating significant growth opportunities in the market [13] - The rare disease market is expanding, particularly for Uplizna, which has seen increased usage in IgG4-related diseases [15] Company Strategy and Development Direction - The company is focused on a volume-driven growth strategy, investing in innovation and science to enable longer, healthier lives [11] - Capital allocation priorities emphasize innovation, with a mid-20% allocation to R&D and a capital expenditure guide of $2.2 billion to $2.3 billion for the year [27][30] - The company is actively engaging with the government on pricing and access issues, aiming to enhance affordability for patients [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong momentum of the business and pipeline, highlighting the importance of innovation in the current environment [11][27] - The company anticipates increased competitive intensity in the biosimilar market, particularly for Prolia and Xgeva, but expects growth from its six major growth drivers [46][47] Other Important Information - The company is exploring opportunities in rare diseases and remains open to business development activities, including licensing and acquisitions [55] - The company has launched Amgen Now, a direct-to-consumer program aimed at increasing access to Repatha [32][40] Q&A Session Summary Question: What are the expectations for the impact of biosimilars on Prolia and Xgeva? - Management expects competitive intensity to increase, leading to revenue declines for Prolia and Xgeva, but anticipates growth from other product lines to offset this erosion [46][47] Question: How is the company navigating the pricing and access landscape? - The company has a history of successfully navigating pricing and access issues and remains confident in its ability to manage these challenges moving forward [36] Question: What is the company's strategy regarding rare diseases? - The company is pleased with its entry into the rare disease market and is open to further opportunities in this area, leveraging its existing capabilities [49][55]