Amgen Inc. (NASDAQ:AMGN) is included among the 15 Best Wide Moat Dividend Stocks to Invest in. RBC Lifts Amgen (AMGN) Target After Strong Q4, Cites Key Drug Momentum On February 4, RBC Capital raised its price recommendation on Amgen Inc. (NASDAQ:AMGN) to $360 from $335. The firm also kept an Outperform rating and pointed to a strong fourth quarter on both revenue and earnings. According to the research note, the upside was largely driven by Prolia, Repatha, Evenity, and Uplizna. On MariTide, Amgen did n ...

Core Insights - Amgen (AMGN) reported Q4 2025 adjusted earnings of $5.29 per share, exceeding the Zacks Consensus Estimate of $4.76 per share, with total revenues of $9.9 billion, a 9% year-over-year increase, surpassing the estimate of $9.5 billion [2][7] Revenue Performance - Total product revenues increased by 7% year-over-year to $9.37 billion, with a 10% rise in volume offset by a 4% negative impact from pricing [3] - Other revenues reached $499 million, up approximately 35% year-over-year [3] Key Drug Performance - Evenity sales were $599 million, a 39% increase year-over-year, surpassing the estimate of $565 million [4] - Repatha generated $870 million, up 44% year-over-year, exceeding the estimate of $812 million [4] - Prolia revenues were $1.05 billion, down 10% year-over-year but still beating the estimate of $975 million [5] - Xgeva revenues fell 20% year-over-year to $447 million, missing the estimate of $454 million [8] - Blincyto sales were $413 million, an 8% increase year-over-year, but missed the estimate of $435 million [9] - Otezla sales were $625 million, flat year-over-year, beating the estimate of $621 million [9] - Enbrel revenues declined 48% year-over-year to $532 million, missing the estimate of $636 million [10] - Tezspire recorded sales of $474 million, a 60% increase year-over-year, exceeding the estimate of $421 million [10] Cost and Margin Analysis - Adjusted operating margin decreased by 3.5 percentage points to 42.8% in Q4 [14] - Adjusted operating expenses rose 16% to $5.86 billion, with R&D expenses increasing by 26% to $2.13 billion [14] Full-Year Results - For the full year 2025, sales rose 10% to $36.8 billion, beating the estimate of $36.4 billion [15] - Adjusted earnings for 2025 were $21.84 per share, a 10% increase year-over-year, surpassing the estimate of $21.29 per share [15] 2026 Guidance - Amgen expects total revenues in the range of $37.0 billion to $38.4 billion for 2026, with adjusted earnings projected between $21.60 and $23.00 per share [17] - Adjusted operating margin is anticipated to be approximately 45% to 46% for 2026 [17] Pipeline Developments - Amgen is advancing MariTide, a GIPR/GLP-1 receptor, with six phase III obesity studies underway [19][20] - Enrollment has been completed in two pivotal studies for MariTide, with ongoing studies for cardiovascular disease and heart failure [21] - Plans to initiate phase III studies for MariTide in type II diabetes are set for later in 2026 [22]

Financial Data and Key Metrics Changes - Amgen delivered strong operational performance in 2025, achieving double-digit growth in revenues and earnings per share [4] - Non-GAAP operating margin was 46% for the full year, with non-GAAP R&D spending increasing 22% year-over-year to a record $7.2 billion [33][34] - Generated $8.1 billion in free cash flow for the full year, reflecting operational momentum and rigorous management of working capital [34] Business Line Data and Key Metrics Changes - Repatha sales grew 36% year-over-year, surpassing $3 billion, driven by increased urgency in treating patients [22] - Evenity sales increased 34% to $2.1 billion, with a 41% growth in the U.S. market [22] - Uplizna sales rose 73% year-over-year to $655 million, reflecting strong demand across all approved indications [25] - The rare disease portfolio grew 14% year-over-year to nearly $5.2 billion [25] - Innovative oncology portfolio grew 11% year-over-year, generating $8.7 billion in sales [30] Market Data and Key Metrics Changes - The U.S. market for Repatha is expected to see increased proactive management of LDL cholesterol due to new clinical guidelines [23] - Evenity leads the bone builder segment with over 60% market share [22] - Tezspire sales grew 52% year-over-year to nearly $1.5 billion, positioning it as a leading therapy for severe uncontrolled asthma [28] Company Strategy and Development Direction - Amgen is focusing on six key growth drivers for 2026: Repatha, Evenity, Tezspire, rare disease, innovative oncology, and biosimilars [35] - The company is committed to advancing innovation in areas of high unmet medical need while maintaining rigorous financial discipline [39] - Amgen plans to leverage AI across the value chain to enhance therapeutic discovery and development [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of MariTide and its differentiated treatment for obesity and related conditions [8] - The company anticipates 2026 to be a springboard year for future growth, despite expected declines from increased competition in certain products [35][36] - Management highlighted the importance of the VESALIUS-CV trial data in promoting Repatha for primary prevention [66] Other Important Information - Amgen retired $6 billion of debt in 2025, strengthening its balance sheet [34] - The company expects capital expenditures of about $2.6 billion in 2026 to support growth and pipeline launches [38] Q&A Session Summary Question: Insights on MariTide and obesity portfolio - Management highlighted the extensive development of MariTide across various indications and the potential for competing broadly in the obesity field [44][45] Question: Dazodalibep for primary Sjögren's syndrome - Management expressed confidence in the ongoing phase III studies and the compelling hypothesis behind the drug's mechanism [48][50] Question: Uplizna's market opportunity and usage - Management discussed the potential for increased awareness and diagnosis of IgG4-related disease, with Uplizna showing strong initial uptake [56][58] Question: Repatha's market strategy amid competition - Management emphasized the unique data package of Repatha and its established role in both primary and secondary prevention [66][69]

Financial Data and Key Metrics Changes - Amgen delivered a 10% sales growth in 2025, with 14 products achieving over $1 billion in annual sales and 18 products reaching record sales [21][32] - Non-GAAP operating margin for the full year was 46%, with R&D spending increasing by 22% year-over-year to a record $7.2 billion [32][33] - Free cash flow generated for the full year was $8.1 billion, reflecting operational momentum and effective working capital management [33] Business Line Data and Key Metrics Changes - Repatha sales grew 36% year-over-year, surpassing $3 billion, driven by increased urgency in treating patients [21][22] - Evenity sales increased by 34% to $2.1 billion, with a 41% growth in the U.S. market [21][23] - Uplizna sales rose 73% year-over-year to $655 million, reflecting strong demand across all approved indications [24][25] - The rare disease portfolio grew 14% year-over-year to nearly $5.2 billion [24] - Tezspire sales grew 52% year-over-year to nearly $1.5 billion, positioning it as a leading therapy for severe uncontrolled asthma [28] Market Data and Key Metrics Changes - The U.S. market for Repatha is seeing improved patient access through broad formulary coverage and the launch of Amgen Now, a direct-to-patient program [22] - Evenity leads the bone builder segment with over 60% market share, with a significant opportunity remaining as nearly 90% of high-risk women remain untreated [23] - Uplizna is the most prescribed FDA-approved therapy for NMOSD in the U.S., supported by consistent new patient growth [25] Company Strategy and Development Direction - Amgen is focusing on six key growth drivers for 2026: Repatha, Evenity, Tezspire, rare disease, innovative oncology, and biosimilars [34][35] - The company is committed to advancing innovation in areas of high unmet medical need while maintaining rigorous financial discipline [38] - Amgen is leveraging AI across the value chain to enhance therapeutic discovery and development [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of MariTide and its differentiated treatment for obesity and related conditions [6][10] - The company anticipates 2026 total revenues in the range of $37.0 billion to $38.4 billion, with non-GAAP earnings per share between $21.60 and $23 [34][36] - Management acknowledged potential challenges from increased competition and pricing pressures but remains optimistic about the overall growth trajectory [36][38] Other Important Information - Amgen's innovative oncology portfolio grew 11% year-over-year, generating $8.7 billion in full-year sales [30] - The company is advancing multiple late-stage programs and has completed five key regulatory approvals in 2025 [9][19] Q&A Session All Questions and Answers Question: Insights on MariTide and obesity portfolio - Management highlighted the development of MariTide across various indications and expressed confidence in competing broadly in the obesity field [42][44] Question: Dazodalibep for primary Sjögren's syndrome - Management confirmed that both phase 3 studies are fully enrolled and expect completion later this year, expressing confidence in the drug's potential [47][49] Question: Uplizna's market opportunity and usage - Management discussed the potential for increased awareness and diagnosis of IgG4-related disease, noting strong initial uptake of Uplizna [51][56] Question: Confidence in Uplizna's phase 3 study in CIDP - Management expressed optimism about Uplizna's unique mechanism of action and the potential to help patients with CIDP [60][63] Question: Repatha's prescription sources and market evolution - Management indicated that approximately 40% of Repatha prescriptions come from primary care, with expectations for growth following the VASILIS data promotion [72][74] Question: Tepezza and AMG 732 for TED - Management confirmed ongoing studies for Tepezza and expressed confidence in its strong evidence base and market position [77][80]

Core Insights - Amgen (AMGN) is set to report its fourth-quarter and full-year 2025 results on February 3, with earnings expected to be $4.74 per share and sales at $9.46 billion, reflecting a 12.8% earnings surprise in the last reported quarter [1][10]. Group 1: Sales Performance - Product sales are anticipated to be driven by strong volume growth from drugs like Evenity, Repatha, and Blincyto, although prices are expected to decline due to increased rebates [2]. - The Zacks Consensus Estimate for sales of Evenity, Repatha, and Blincyto is $559 million, $798 million, and $434 million, respectively [3]. - Newer drugs such as Imdelltra, Tavneos, and Tezspire are expected to contribute to top-line growth, alongside sales from rare disease drugs like Uplizna, estimated at $183 million [4]. Group 2: Patent Expirations and Competitive Pressures - Patents for key drugs Prolia and Xgeva expired in February 2025 in the U.S., leading to expected sales erosion due to the launch of biosimilars, with estimates of $980 million for Prolia and $444 million for Xgeva [5]. - Competitive pressures have negatively impacted volume growth for Kyprolis, with an estimated sales figure of $365 million, while Enbrel sales are likely to decline due to price reductions [6]. Group 3: Biosimilars and R&D Costs - Amgen's biosimilars, including Wezlana and Pavblu, are expected to contribute to sales growth, although Wezlana is not expected to generate U.S. sales in the fourth quarter [7]. - Lower revenues from oncology biosimilars and legacy products are anticipated, alongside higher R&D costs that may negatively impact operating margins [8][9]. Group 4: Earnings Expectations - Amgen's Earnings ESP is -0.40%, indicating a lower likelihood of an earnings beat, with the most accurate estimate at $4.72 per share compared to the consensus of $4.74 [13][14].

Summary of Amgen's Conference Call Company Overview - **Company**: Amgen - **Industry**: Biotechnology and Pharmaceuticals - **Key Focus Areas**: Therapeutics for unmet medical needs, including cardiovascular diseases, osteoporosis, severe asthma, and rare diseases [2][3] Financial Performance - **2025 Revenue Growth**: 10% increase in revenues, driven by 14 blockbuster products [4] - **Earnings Growth**: 14% increase in earnings per share [4] - **Debt Reduction**: Over $6 billion in debt paid down in 2025 [6] Key Products and Growth Drivers - **Repatha**: - Annualized sales of approximately $3 billion, growing at 33% [7] - Demonstrated a 36% reduction in heart attack risk in primary prevention [5] - Significant market opportunity with over 100 million people at risk of heart attacks [9] - **Evenity**: - Sales growth of over 30%, targeting women at high risk of osteoporotic fractures [10] - Urgent need for treatment due to high mortality rates post-fracture [47] - **Tezspire**: - Innovative treatment for severe asthma and chronic rhinosinusitis with nasal polyps [10] - Strong clinical performance and potential for expansion into COPD and eosinophilic esophagitis [10] - **Biosimilars**: - 42% year-over-year sales growth, contributing $13 billion since entry into the market [15] - **Rare Disease Portfolio**: - Approached $5 billion in sales, with ongoing expansion into new indications [11] Pipeline and Future Prospects - **MariTide**: - Focused on obesity and type 2 diabetes, with six phase 3 studies initiated [19] - Potential for monthly or less frequent dosing, addressing treatment persistence issues [20][21] - **Olpazeran**: - Targets Lp(a) reduction, a significant risk factor for cardiovascular disease, with potential for 95%-100% reduction [38] - Expected to provide a long-acting treatment option for patients [39] - **Imdeltra**: - Bispecific T-cell engager for small cell lung cancer, showing promise in early lines of therapy [13] Market Dynamics and Strategic Focus - **Obesity Market**: - Anticipated growth due to increasing recognition of obesity as a chronic disease [29] - Amgen aims to position itself as a key player in this evolving landscape [30] - **Capital Allocation**: - Focus on investing in innovation and manufacturing capabilities to maintain competitive advantage [25] - **Technological Integration**: - Emphasis on incorporating technology and AI to enhance operational efficiency [24] Conclusion - Amgen is positioned for significant growth in 2026 and beyond, driven by a robust pipeline of innovative therapies and a strong financial foundation. The company is focused on addressing high unmet medical needs across various therapeutic areas, with a commitment to maintaining operational discipline and investing in future growth opportunities [27]

Core Viewpoint - Amgen Inc. is set to announce its fiscal fourth-quarter earnings for 2025, with analysts projecting a decline in profit per share compared to the previous year, despite a generally positive outlook for the company's performance and stock growth [1][2]. Financial Performance - Analysts expect Amgen to report a profit of $4.74 per share on a diluted basis for the upcoming quarter, which represents a 10.7% decrease from $5.31 per share in the same quarter last year [2]. - For the full fiscal year, analysts project an EPS of $21.28, reflecting a 7.3% increase from $19.84 in fiscal 2024, with further growth anticipated to $21.69 in fiscal 2026 [3]. Stock Performance - Amgen's stock has outperformed the S&P 500 Index, gaining 22.8% over the past 52 weeks, compared to the S&P 500's 16.2% increase and the Health Care Select Sector SPDR Fund's 11.6% returns [4]. - Following the Q3 results announcement on November 4, 2025, Amgen's shares rose by 7.8% in the subsequent trading session [6]. Growth Drivers - The company's growth is attributed to increasing demand for newer medicines such as Repatha, Tezspire, and Evenity, alongside a diversified product portfolio and successful product launches [5]. - Management anticipates continued growth momentum supported by late-stage pipeline programs and investments in manufacturing and AI technologies, including the AmgenNow platform aimed at improving patient access [5]. Analyst Sentiment - The consensus opinion among analysts is moderately bullish, with a "Moderate Buy" rating overall. Out of 32 analysts, 14 recommend a "Strong Buy," 2 suggest a "Moderate Buy," 13 advise a "Hold," 1 recommends a "Moderate Sell," and 2 advocate a "Strong Sell" [7]. - The average analyst price target for Amgen is $330.74, indicating a potential upside of 3.1% from current levels [7].

Industry Overview - The drug and biotech sector has shown recovery after a weak first half, with large drugmakers signing pricing agreements with the Trump administration [1] - Dealmaking activity surged in the second half, boosting investor confidence, with the Large Cap Pharmaceuticals industry outperforming the S&P 500 in the past three months [1][4] - Innovation is at its peak, particularly in areas like obesity, cell and gene therapy, and next-gen oncology treatments, attracting investor attention [2] - Despite headwinds such as pipeline setbacks and regulatory risks, the outlook for growth in 2026 remains favorable due to rapid innovation and increased use of AI in drug development [2] Eli Lilly - Eli Lilly has achieved significant success with its tirzepatide medicines, including diabetes drug Mounjaro and weight loss medicine Zepbound, which are key revenue drivers [6][7] - Strong sales growth in 2025 is attributed to international market launches and improved production, with continued demand expected in 2026 [7] - Lilly is investing in obesity treatments with new molecules in clinical development, including orforglipron and retatrutide, with regulatory applications filed for orforglipron [8][9] - Despite challenges like declining product prices and competition in the GLP-1 market, Lilly's stock has risen 39.3% year to date, with 2026 earnings estimates improving from $30.78 to $33.61 per share [10] Johnson & Johnson - J&J has shown strong operational performance in 2025, with double-digit revenue growth from key brands despite the loss of exclusivity for Stelara [11] - The Innovative Medicine segment is expected to accelerate growth in 2026, driven by key products and new launches [12] - J&J's MedTech business has improved, with growth driven by acquired cardiovascular businesses and new product launches expected to contribute to 2026 growth [13][14] - The company has advanced its pipeline significantly and is on an acquisition spree, with a Zacks Rank of 2 (Buy) and a stock rise of 43.3% year to date [17] AbbVie - AbbVie faces declining sales from Humira due to loss of exclusivity but has successfully launched new immunology medicines Skyrizi and Rinvoq, generating combined sales of $18.5 billion in the first nine months of 2025 [18][19] - Strong market growth and new indications for these drugs are expected to drive future growth, alongside contributions from newer drugs [20] - AbbVie anticipates a high single-digit CAGR through 2029, supported by robust performance from Skyrizi and Rinvoq, with a Zacks Rank of 3 and a stock rise of 28.2% year to date [21][22] Amgen - Amgen's revenue growth is driven by key medicines like Repatha and new biosimilars, compensating for declines from mature drugs [23][24] - The company is focusing on obesity treatments with its candidate MariTide, which differentiates itself with a convenient dosing method [24] - Amgen's stock has risen 27.3% year to date, with 2026 earnings estimates increasing from $21.43 to $21.62 per share [25] AstraZeneca - AstraZeneca has several blockbuster drugs exceeding $1 billion in sales, with newer products contributing to growth despite losses from mature brands [26][27] - The company expects to achieve industry-leading top-line growth through 2030, with plans to launch 20 new medicines and generate $80 billion in total revenues [28] - AstraZeneca faces challenges such as competition and regulatory impacts but maintains a stable earnings estimate of $5.15 per share for 2026, with a stock rise of 10.7% year to date [29][30]

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]

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]