BofA update shows where active managers are putting money
Investing.com -- Amgen Inc (NASDAQ:AMGN) shares were slightly lower in premarket trading despite posting better-than-expected quarterly profit and revenue, with strong product growth across both legacy franchises and newer assets.
Investors seemed to take a wait-and-see approach even as management offered a confident full-year guidance range and reaffirmed its long-term pipeline strategy.
The biotech heavyweight reported adjusted earnings per share of $6.02 for the second quarter, well above the $5.26 anticipated by Wall Street analysts. Revenue climbed 9% from the prior year to $9.18 billion, surpassing consensus forecasts of $8.92 billion, as product sales rose on double-digit volume gains.
Leading contributors included Repatha, up 31% to $696 million; EVENITY, up 32% to $518 million; and TEZSPIRE, which surged 46% to $342 million. Notably, 15 products delivered at least double-digit sales growth during the quarter, though softer pricing and biosimilar headwinds weighed on key brands like Prolia and Enbrel, down 4% and 34% respectively.
“We’re delivering strong performance and reaching more patients with innovative medicines and biosimilars that address serious diseases,” said Robert A. Bradway, Amgen’s chairman and chief executive. “We continue to invest in science that enables longer, healthier lives and supports sustainable, long-term growth.”
Amgen’s diversified portfolio strategy continues to hinge on a balance between high-margin legacy biologics, expanding biosimilar offerings, and innovative pipeline investments. Repatha and BLINCYTO remain volume-driven standouts, while Imdelltra, its recently approved lung cancer therapy, generated $134 million and marked a 65% sequential jump.
Investor attention is increasingly focused on the company’s next-generation pipeline, notably MariTide, an obesity candidate that showed ~20% average weight loss in patients without Type 2 diabetes in Phase 2 trials. Bemarituzumab, with statistically significant overall survival data in gastric cancer, and the BiTE platform drug Imdelltra are also viewed as long-term revenue pillars.
Overall, the company’s operating margin expanded to 48.9% on a non-GAAP basis, aided by disciplined SG&A and efficient manufacturing. For full-year 2025, Amgen projected EPS between $20.20 and $21.30 on revenue of $35–36 billion, largely in line with analyst expectations and reflective of pipeline contributions in the second half.
"Management indicated 2025 guidance includes the estimated impact of implemented tariffs, but does not account for any tariffs or potential pricing actions that have been announced but not implement[ed], nor for any future tariffs (general or sector specific) or pricing actions that may be introduced in the future," analysts at Morgan Stanley (NYSE:MS) said in a note.
(Scott Kanowsky contributed reporting.)