Amgen Defies Patent Pressure with Strong Growth and Pipeline Progress

At the Wells Fargo 21st Annual Healthcare Conference, Amgen (AMGN) reported strong growth despite patent pressure and increased competition. The company's second-quarter revenue exceeded $10 billion, a 10% increase from the previous year.

The six main growth drivers for Amgen - Repatha, EVENITY, TEZSPIRE, rare disease, innovative oncology, and biosimilars - grew by 26% year over year and accounted for nearly 70% of product sales. These drivers include Repatha, which grew 37% year over year in the second quarter.

Amgen's management also signaled that they are willing to accept slightly lower margins to fund innovation, even as they keep a firm grip on profitability. The company has guided to a non-GAAP operating margin of 45% to 46% for the year, down from its peak in the 50s.

The company's biggest clinical update was positive phase III data for IMDELLTRA in combination with durvalumab as first-line maintenance treatment in extensive-stage small cell lung cancer. This could lead to a major expansion for the drug and make it a standard of care in the second-line setting.