Amgen's Double-Digit Growth Driven by New Products Amid Franchise Decline

Amgen's latest earnings call highlighted broad-based commercial strength and double-digit revenue growth. Management acknowledged pressure from a decline in the Prolia/XGEVA franchise, rising costs, and pipeline uncertainty but emphasized new growth drivers, robust margins, and strong cash generation.

Total revenues surpassed $10 billion in the second quarter, up 10% year over year. Seventeen products are now annualizing at more than $1 billion based on Q2 sales, while 22 products delivered double-digit growth. Six core growth engines continue to outperform, growing 26% year over year and accounting for nearly 70% of product sales.

Repatha posted $953 million in Q2 sales, up 37% year over year, driven by strong outcomes data. Evenity sales jumped 38%, while Tezspire rose 42%. The rare disease portfolio grew 21% to $1.6 billion, and innovative oncology advanced 18%.

Amgen's profitability remained robust with a non-GAAP operating margin of 48%. Free cash flow reached $3.5 billion in Q2. Management raised full-year guidance, projecting total revenues between $38.2 billion and $39.4 billion and non-GAAP EPS of $22.30 to $23.50.