Q2 2026 Amgen Inc Earnings Call Transcript
Key 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.
- 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.
My name is Julianne, and I will be your conference facilitator today for the Amgen Q2 2026 earnings conference call. (Operator Instructions)
I would now like to introduce Casey Capparelli, Vice President of Investor Relations. Mr. Capparelli, you may now begin.
Thank you, Julianne. Good afternoon, everyone, and welcome to our second quarter of 2026 earnings call. Bob Bradway will lead the call today, and be followed by a broader review of our performance by Murdo Gordon, Jay Bradner, and Peter Griffith.
Through the course of our discussion today, we will use non-GAAP financial measures to describe our performance and have provided appropriate reconciliations within the materials that accompany this call. We will also make some forward-looking statements, which are qualified by our safe harbor statement. And please note that actual results can vary materially.
Over to you, Bob.
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