- Total Revenues: Exceeded $10 billion, a 10% year-over-year increase.
- Product Sales Growth: 22 products delivered double-digit sales growth; 17 products annualized at more than $1 billion based on Q2 sales.
- Key Growth Drivers: Grew at an aggregate rate of 26% year-over-year, representing nearly 70% of Q2 product sales.
- Repatha Sales: $953 million, up 37% year-over-year.
- EVENITY Sales: $714 million, up 38% year-over-year.
- TEZSPIRE Sales: $486 million, up 42% year-over-year.
- Prolia and XGEVA Sales: Combined $1.1 billion, down 33% year-over-year.
- Rare Disease Portfolio Sales: $1.6 billion, up 21% year-over-year.
- UPLIZNA Sales: $335 million, up 90% year-over-year.
- TEPEZZA Sales: $576 million, up 14% year-over-year.
- Innovative Oncology Portfolio Sales: Approximately $2 billion, up 18% year-over-year.
- IMDELLTRA Sales: $288 million, up 115% year-over-year.
- BLINCYTO Sales: $472 million, up 23% year-over-year.
- Biosimilar Portfolio Sales: $855 million, up 29% year-over-year.
- PAVBLU Sales: $287 million, up 121% year-over-year.
- Non-GAAP Operating Margin: 48%.
- Non-GAAP Cost of Sales: 19.6% as a percentage of product sales.
- Free Cash Flow: $3.5 billion in Q2.
- Capital Expenditures: $500 million in Q2; full-year 2026 expectation of approximately $2.6 billion.
- Dividend: $2.52 per share, a 6% increase year-over-year.
- 2026 Guidance: Total revenues raised to $38.2 billion to $39.4 billion; non-GAAP EPS raised to $22.30 to $23.50.
Release Date: August 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Total revenues exceeded $10 billion, a 10% year-over-year increase, with 22 products delivering double-digit sales growth.
- Six key growth drivers (Repatha, EVENITY, TEZSPIRE, rare disease, innovative oncology, biosimilars) grew 26% year-over-year and represented nearly 70% of product sales.
- Repatha sales grew 37% year-over-year, driven by strong new-to-brand prescription growth and supported by VESALIUS-CV outcomes data.
- UPLIZNA sales increased 90% year-over-year, with strong momentum across all three approved indications and potential for additional indications.
- IMDELLTRA sales grew 115% year-over-year, establishing itself as a best-in-class treatment for small cell lung cancer with expanding adoption.
- The company raised its 2026 guidance for both revenue and non-GAAP EPS, reflecting strong first-half performance.
- Late-stage pipeline progress includes MariTide, Olpasiran, and Xaluritamig, with multiple Phase 3 studies underway.
- Biosimilars portfolio grew 29% year-over-year, with PAVBLU sales up 121%, and a strong pipeline of future biosimilar candidates.
- Strong free cash flow of $3.5 billion in Q2 enabled continued investment in manufacturing capacity and shareholder returns via a 6% dividend increase.
- Positive CHMP opinion for Repatha in the EU supports a broader label, expanding its market potential.
Negative Points
- Prolia and XGEVA combined sales decreased 33% year-over-year due to biosimilar competition, in line with expectations.
- Non-GAAP cost of sales as a percentage of product sales increased year-over-year, reflecting higher profit sharing and royalty expenses.
- The company decided to stop development of AMG 513, a Phase 1 obesity asset, indicating challenges in the pipeline.
- Sunakiment (AMG-104) failed to meet its primary endpoint in a Phase 2 study, though a Phase 3 program is still planned.
- Otezla faces pricing pressure due to 340B exposure, though volumes remain stable.
- Increased competition in the PCSK9 market with the approval of an oral PCSK9 inhibitor could impact Repatha's market share.
- The company expects a meaningful sequential increase in operating expenses in Q3, which could pressure margins.
- MariTide's Phase 3 program is extensive and costly, with R&D spending expected to grow high single digits, including nine ongoing Phase 3 trials.
- The company's reliance on business development for growth carries execution risks, as highlighted by a $100 million upfront payment for a new transaction.
- Elevated Lp(a) trials (OCEAN(a)) may face challenges in demonstrating cardiovascular benefit independent of LDL-C, as seen in competitor studies.
Q & A Highlights
Q: Regarding the Lp(a) candidate Olpasiran, how was the OCEAN(a) trial designed, and does the exclusion of stroke from the primary MACE-3 endpoint affect the study's event rate or timeline compared to competitors using a MACE-4 endpoint?
A: Murdo Gordon (EVP, Global Markets and Policy): The OCEAN(a) study is a double-blind, randomized controlled trial that has enrolled 7,297 patients in record time. A key design feature is the requirement for elevated Lp(a) levels above 200 nmol/L, which biases the study towards a higher-risk patient group. The study uses every-12-week dosing and is event-driven, with a primary endpoint of 3-point MACE. We chose this endpoint after extensive human genetics and population science analysis indicated that the association between ischemic stroke and Lp(a) elevation is not as compelling as other cardiac-specific endpoints. Our modeling shows that the lack of stroke in the endpoint does not influence the event rate.
Q: What is the current thinking on business development strategy, and how much does it depend on the outcomes of late-stage clinical readouts like MariTide and Lp(a)?
A: Robert Bradway (Chairman, President, and CEO): Our business development strategy is consistent and focused on therapeutic areas where we can add value in research and development. We are looking at opportunities, primarily in smaller, earlier-stage assets, as we are seeing exciting early-stage progress in the industry. The strategy is not directly linked to the outcomes of our late-stage Phase 3 trials, as our operational plate is already full in late-stage clinical development, particularly in cardiometabolic disease.
Q: With competitor Lp(a) data expected shortly, what will you be looking for, and what would a 13%-15% benefit mean for Olpasiran?
A: Murdo Gordon (EVP, Global Markets and Policy): We are following the competitor data with interest, but we expect it to provide directional insight rather than a decisive perspective. This is due to the superior properties of our molecule, Olpasiran, which delivers greater than 95% Lp(a) reduction compared to the competitor's approximate 70%, as well as differences in study design. We are confident in our profile given the huge unmet need and the American Heart Association's recommendation for testing.
Q: How confident are you that the vomiting rates in the MariTide Phase 3 trials will be mid-20s or better, and are you tracking malignancies on a blinded basis in the Dazodalibep trial?
A: Murdo Gordon (EVP, Global Markets and Policy): We are fully focused on delivering a compelling Phase 3 data package for MariTide in 2026. Trial enrollment is strong, which is a sign of the unmet need and interest in the profile, and we are very confident in the medicine's profile. Regarding Dazodalibep, as is appropriate for any Phase 3 immunomodulatory medicine, a data safety monitoring committee is in place and capturing all high and potentially associated incident effects. We will learn more about Dazodalibep in the second half of this year.
Q: Can you discuss the difference between the systemic and symptomatic Sjögren's disease studies for Dazodalibep, and how much of a differentiated label can you get relative to competitors?
A: Murdo Gordon (EVP, Global Markets and Policy): We are running two distinct Phase 3 studies because there is tremendous unmet need and the patient populations are rightly studied separately. The systemic study uses the physician-observed ESSDAI score, while the symptomatic study uses the patient-reported ESSPRI score. Our Phase 2 data showed significant improvement on both scores versus placebo. The systemic study has 621 patients, and the symptomatic study has 434 patients. We are hopeful but humble, as it is a challenging disease, and we will learn more in H2 of this year.
Q: What are you seeing regarding TYK2 inhibitor impact on Otezla in the dermatology market, and how should we think about the drug's future in light of IRA selection?
A: Murdo Gordon (EVP, Global Markets and Policy): Otezla is generally used as a first-stop systemic agent due to its extensive clinical experience, broad label, and clear payer coverage. The new entrants are competing with each other after Otezla is tried, so we are not seeing direct competition. We are seeing some price pressure due to 340B exposure, but overall volume is holding up quite well.
Q: How does Repatha's label compare to the newly approved oral PCSK9 inhibitor, and what are the contract dynamics now that there is an oral option?
A: Murdo Gordon (EVP, Global Markets and Policy): The labels do not compare. Repatha has over 50,000 patients in clinical trials, a broad label including primary and secondary prevention, and 10 years of real-world experience. The market is huge, and additional therapies are treating other patients rather than competing for share with Repatha. We believe the every-two-week injection is an easy regimen for patients, and we have seen limitations with orals, including compliance challenges and food restrictions. The comparison is too simplistic; the goal is to prevent heart attacks, which Repatha has demonstrated with clear evidence.
Q: What is the baseline LDL-C in the OCEAN(a) trial, and is it possible that Lp(a) effects only manifest in the presence of higher baseline LDL-C?
A: Murdo Gordon (EVP, Global Markets and Policy): By targeting Lp(a) levels of 200 nmol/L or higher, we have biased the OCEAN(a) study towards a slightly higher-risk group. We believe Lp(a) elevation to this extent is firmly independent of LDL-C as a risk factor. Even with improved standard of care, reducing LDL-C would not be sufficient to drop Lp(a) meaningfully, so Lp(a)-directed therapy is urgently needed.
Q: Is Repatha's growth coming from broader primary care adoption or existing prescribers, and what is the rationale for using two primary endpoints in the Dazodalibep symptomatic trial?
A: Murdo Gordon (EVP, Global Markets and Policy) & James Bradner (EVP, R&D): Repatha's growth is split evenly between cardiologists broadening their use and primary care physicians expanding their prescribing, particularly for high-risk primary prevention patients with diabetes. For Dazodalibep, the systemic study uses the single ESSDAI endpoint, while the symptomatic study
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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