Amgen's Q1 Earnings Beat Estimates, Key Drugs Drive Sales Growth

Core Viewpoint - Amgen reported strong first-quarter 2025 results, exceeding earnings and revenue estimates, driven by robust product sales despite rising operating costs [1][20][21]. Financial Performance - Adjusted earnings per share were $4.90, surpassing the Zacks Consensus Estimate of $4.16, marking a 24% year-over-year increase [1]. - Total revenues reached $8.1 billion, exceeding the Zacks Consensus Estimate of $7.95 billion, reflecting a 9% year-over-year growth [1]. Product Revenue Breakdown - Total product revenues increased by 11% year-over-year to $7.87 billion, with volume growth of 14% partially offset by price declines [2]. - Prolia generated $1.1 billion in revenue, up 10% year-over-year, beating estimates [3]. - Evenity sales rose 29% year-over-year to $442 million, exceeding expectations [4]. - Repatha revenues increased by 27% year-over-year to $656 million, driven by a 41% rise in volumes [5]. - Xgeva delivered revenues of $566 million, up 1% year-over-year, beating estimates despite currency headwinds [6]. - Kyprolis sales declined 14% year-over-year to $324 million due to competitive pressures [7]. - Otezla sales were $437 million, up 11% year-over-year, beating estimates [9]. - Enbrel revenues fell 10% year-over-year to $510 million due to lower prices [10]. - Tezspire recorded sales of $285 million, up 65% year-over-year, exceeding expectations [11]. - New biosimilars, Wezlana and Pavblu, generated $150 million and $99 million in sales, respectively [12]. Cost and Margin Analysis - Adjusted operating margin increased by 2.5 percentage points to 45.7% [15]. - Adjusted operating expenses rose by 4% to $4.55 billion, with R&D expenses increasing by 11% [15]. Guidance and Future Outlook - Amgen reaffirmed its 2025 guidance, expecting total revenues between $34.3 billion and $35.7 billion and adjusted earnings per share between $20.00 and $21.20 [16]. - The company is developing MariTide, a new obesity treatment, with ongoing phase III studies [17][18][19]. Market Performance - Amgen's stock has risen 9.4% year-to-date, outperforming the industry, which has seen a 1.2% decline [21].