Amgen's Quarterly Earnings Surpass Estimates with Strong Sales and Lower Tax Rate

• Cholesterol drug Repatha led performance with sales jumping 44% to $870 million, beating the $793 million estimate, though the company expects mid-single digit price declines in 2026
• Arthritis drug Enbrel sales plummeted 48% to $532 million (vs. $679 million estimate) primarily due to lower Medicare pricing, while eye disease drug Tepezza missed expectations at $457 million versus $554 million estimated
• The company is conducting six Phase 3 trials for an experimental obesity drug across multiple conditions and enrolling patients in a Phase 1 trial for another weight-loss candidate, AMG513

Amgen Q4 Earnings Beat Estimates on Strong Drug Sales and Tax Benefits

Amgen reported fourth-quarter results exceeding Wall Street expectations, with total revenue rising 9% year-over-year to $9.9 billion, surpassing analyst estimates of $9.5 billion. The California-based biotech company posted adjusted earnings that beat consensus, driven by a 7% increase in drug sales and a significantly lower tax rate.

Key Performance Drivers:

Product sales grew 7% overall, with volume up 10% offset by a 4% decline in net prices. The company's tax rate decreased 7.8 percentage points compared to the prior-year quarter due to adjustments in U.S. tax on foreign subsidiaries.

Individual Drug Performance:

• Repatha (cholesterol): Sales surged 44% to $870 million, beating estimates of $793 million, though Amgen expects mid-single-digit price declines in 2026
• Tepezza (eye disease): Revenue fell 1% to $457 million, missing expectations of $554 million
• Enbrel (arthritis): Sales plummeted 48% to $532 million versus estimates of $679 million, primarily due to lower Medicare pricing

Future Outlook:

Amgen is advancing its obesity drug pipeline with six Phase 3 trials underway for an experimental treatment across obesity, heart disease, and sleep apnea. The company plans to initiate Phase 3 diabetes studies this year and is enrolling participants in a Phase 1 trial for another weight-loss candidate, AMG513.

Market Implications:

The strong quarterly performance demonstrates Amgen's ability to offset pricing pressures through volume growth, though continued Medicare pricing challenges on legacy products like Enbrel remain a concern. The company's aggressive push into the lucrative obesity treatment market positions it to compete in one of pharma's fastest-growing segments.