Quick Summary
1. 2025 Revenue: $36.8 Billion (10% year-over-year growth).
2. Key Growth Drivers: Repatha (+36%), Tezspire (+52%), and Evenity (+39%).
3. 2026 Priority Launches: Imdelltra (lung cancer) and Uplizna (gMG expansion).
3. Major Pipeline Catalyst: Phase 3 data for MariTide (obesity) and Olpasiran (cardiovascular) expected late 2026.
Amgen (NASDAQ: AMGN) reported robust financial results for the fourth quarter and full year of 2025, characterized by record-breaking revenues and significant volume-driven growth across its diverse portfolio of medicines. The biotechnology giant announced a 10% increase in total annual revenues, reaching $36.8 billion, even as it navigated pricing pressures and legislative headwinds from the Inflation Reduction Act (IRA).
Financial Performance Overview
Amgen’s fourth-quarter revenue rose 9% year-over-year to $9.9 billion, while full-year revenue hit a milestone of $36.8 billion. The growth was primarily powered by a 13% increase in product volume for the full year, offsetting a 3% decline in net selling prices.
Earnings Highlights:
- Full-Year GAAP EPS: Increased 88% to $14.23, bolstered by higher revenues and equity investment gains.
- Full-Year Non-GAAP EPS: Grew 10% to $21.84.
- Q4 GAAP EPS: Rose 111% to $2.45.
- Q4 Non-GAAP EPS: Remained stable at $5.29.
Product Portfolio Performance: Hits and Headwinds
The year 2025 was a landmark for Amgen’s commercial engine, with 14 products exceeding $1 billion in annual sales and 18 products achieving record sales.
Growth Drivers:
- Repatha® (cholesterol): Sales surged 44% in Q4 to $870 million, ending the year with 36% growth.
- Tezspire® (asthma): Delivered a standout performance with 60% Q4 growth and 52% full-year growth.
- Evenity® (bone health): Sales climbed 39% in Q4 to $599 million.
- Uplizna® (rare disease): Witnessed a dramatic 131% Q4 sales jump, reaching $233 million.
Challenges and Strategic Adjustments:
- Enbrel®: The veteran immunology drug faced a difficult quarter, with sales plunging 48% to $532 million in Q4. This was largely attributed to a 35% lower net selling price driven by the U.S. Medicare Part D redesign and increased discounts.
- Otezla®: While annual sales grew 7%, Amgen recorded a significant $1.2 billion intangible asset impairment charge for Otezla following its selection for Medicare price negotiations under the IRA.
- Prolia®: Faced a 10% decline in Q4 sales. Amgen warned investors to expect “accelerated sales erosion” in 2026 as multiple biosimilars prepare to enter the global market.
Biosimilars and Oncology
Amgen continues to expand its footprint in biosimilars. PAVBLU® (aflibercept-ayyh) generated $700 million for the full year, while WEZLANA® (ustekinumab-auub) contributed $273 million. In oncology, Blincyto® and Vectibix® remained strong contributors, with Vectibix seeing a 30% increase in Q4 sales.
2026 Outlook and Cash Flow
The company generated $8.1 billion in free cash flow for 2025, down from $10.4 billion in 2024 due to the timing of working capital and increased capital expenditures.
Looking ahead to 2026, Amgen anticipates continued volume growth but remains cautious regarding pricing. The company expects mid-single-digit price declines for Repatha and continued competitive pressure on legacy brands like Enbrel and Ravicti. However, management remains confident that its pipeline of innovative therapies and its expanding rare disease portfolio will sustain long-term value for shareholders.
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