Amgen Inc 2026 Q2 Earnings Call

Thank you, Julianne. Good afternoon, everyone, welcome to our second quarter of 2026 earnings call. Bob Bradway will lead the call today, 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, please note that actual results can vary materially.

Over to you, Bob. Good afternoon, thank you for joining us.

Our strong results were driven by the breadth and depth of our portfolio, once again demonstrate our ability to grow through patent expirations and increased competition. We're pleased with the momentum across our business, expect to reach more patients with our innovative medicines and biosimilars in the second half of the year than ever before, as volume demand for our products continues to grow strongly. This broad-based performance is exactly what our strategy is intended to deliver, it's why we remain confident in our ability to deliver durable growth well into the next decade. Turning to the quarter, total revenues exceeded $10 billion, a 10% year-over-year increase. Notably, 22 products delivered double-digit sales growth, 17 products annualized at more than $1 billion based on second quarter sales.

These results, including strong earnings, margin performance, were achieved while we increased our investment in innovation, reflecting the sound financial structure of our business. That sound financial structure also gives us the flexibility to invest with discipline in both our internal pipeline and external innovation while supporting the long-term needs of the business. As we've discussed for some time, our six key growth drivers are propelling the business forward. Together, they grew at an aggregate rate of 26% year-over-year, represented nearly 70% of our second quarter product sales. Importantly, many of our first-in-class and best-in-class medicines address large and under-penetrated disease areas, giving us confidence that significant opportunities remain to reach many more patients and contribute to durable long-term growth. For example, while more than a million people in the U.S. are on Repatha, there are tens of millions more who would benefit from the therapy.

As our products continue to grow, we're also investing in expanding their long-term potential. We're adding indications, broadening geographic reach, improving dosage administration, and expanding payer access across our medicines. Our late-stage pipeline is progressing well and also provides additional opportunities for growth. MariTide, olpasiran, and xaluritamig are advancing through phase III development and have the potential to address areas of significant unmet medical need. We remain focused on disciplined execution and generating high-quality evidence required to bring these medicines to patients. Jay will discuss our progress there in a few moments. Underpinning these efforts are our investments in technology, data, and artificial intelligence, which are helping us advance promising medicines more efficiently from discovery through development and manufacturing. In summary, the business continues to perform well, and we're excited about the future and our ability to deliver durable growth well into the next decade.

Let me take a moment to thank my Amgen colleagues around the world for their dedication to our mission to serve patients and for the quality of their work every day. I'll now turn it over to Murdo.

Thanks, Bob. Our second quarter results reflect not only the breadth of our portfolio, but the strength and consistency of our execution across key brands and geographies. The next phase of Amgen's growth is fueled by 6 key drivers, Repatha, which grew 37% in the second quarter, EVENITY at 38%, TEZSPIRE at 42%, rare disease at 21%, innovative oncology at 18%, and biosimilars at 29%. As Bob mentioned, this combined portfolio of products is now representing approximately 70% of sales. These growth drivers are delivering strong performance, with the majority of these medicines addressing large areas of public health. In rare disease and innovative oncology, we're sustaining growth through additional indications, international expansion, and disciplined pricing. Together, they're driving durable performance and positioning Amgen for sustained growth well into the next decade. Starting with general medicine, Repatha delivered $953 million in second quarter sales, growing at 37% year-over-year.

Momentum continues to build for Repatha, with new-to-brand prescriptions growing more than 50% year-over-year in the U.S., supported by increased urgency to treat, both in secondary prevention and high-risk primary prevention patients. The clinical evidence supporting Repatha is unrivaled in its class. Repatha is the only PCSK9 inhibitor with phase III outcomes data in both primary and secondary prevention. Our landmark VESALIUS-CV trial reinforces that earlier and more intensive LDL-C lowering before cardiovascular events occur can deliver meaningful risk reduction. These data further strengthen the case for Repatha to be the first therapy considered when intensifying LDL-C treatment beyond statins. Repatha should be central to an aggressive LDL-lowering strategy for the estimated 100 million patients worldwide who are still above their LDL-C goals. Repatha has broad access and is uniquely positioned to close the treatment gap and drive sustained growth into the next decade.

EVENITY sales increased 38% in the second quarter to $714 million, building on 27% growth in the previous quarter. In the U.S., the opportunity remains significant, with approximately 2 million women at very high risk of a fracture and EVENITY reaching only mid-single-digit penetration to date. EVENITY continues to lead the U.S. bone builder market and is well-positioned to reach even more patients. In Japan, EVENITY holds category leadership with more than 55% volume share. 1 million patients have now been treated in Japan alone, representing a major milestone in clinical adoption. Moving to inflammation, TEZSPIRE sales grew 42% year-over-year, reaching $486 million, driven by strong demand in severe uncontrolled asthma. In the second quarter, TEZSPIRE was the market leader in new-to-brand prescription share in severe uncontrolled asthma among allergists and continues to grow with pulmonologists.

TEZSPIRE is reaching more patients today through expanded Medicare access, including coverage for self-administration, with additional opportunity ahead as Medicare Part D access improves. Uptake in chronic rhinosinusitis with nasal polyps is encouraging and is already extending TEZSPIRE's impact beyond severe asthma. We expect additional indications to deliver continued catalysts for growth in the future, and Jay will share more about those in a moment. Prolia and XGEVA combined delivered $1.1 billion in second quarter sales, a decrease of 33% year-over-year. This is in line with our expectations, given several biosimilar competitors have now launched. Turning to our rare disease portfolio, which grew 21% year-over-year to $1.6 billion, you can clearly see our strategy coming to life. Growth is driven by additional indications, international expansion, and disciplined pricing. We're highly encouraged by the value these products continue to deliver for patients and for Amgen's long-term growth.

UPLIZNA sales increased 90% year-over-year to $335 million in the second quarter, reflecting sustained momentum across all three approved indications. The compelling biology of UPLIZNA's CD19-targeted mechanism, which is designed to deplete the B cells driving autoimmune pathology, is resonating with both physicians and patients. UPLIZNA's durable efficacy and convenient twice-yearly dosing further reinforce its impact. These attributes, along with broad payer coverage and Amgen's comprehensive patient access services, are enabling rapid initiation and continuity of care across indications. Uptake in gMG continues to build, supported by an almost even mix of bio-naive and switch patients, with a doubling of U.S. prescribers since the previous quarter. We believe UPLIZNA is well-positioned to establish market leadership in this category. Growth also continues in IgG4-related disease, where significant underdiagnosis remains. Increased disease awareness is helping more physicians identify appropriate patients.

Recent long-term follow-up data illustrate the durable efficacy profile for patients with IgG4-related disease. As you'll hear from Jay, we see meaningful opportunity to extend UPLIZNA's growth trajectory through additional indications. These clinical programs further leverage the advantages of CD19-directed B-cell depletion across a broader range of autoimmune diseases. TEPEZZA sales grew 14% year-over-year to $576 million in the second quarter. We're seeing strong uptake globally, with solid execution in Japan following last year's launch. TEPEZZA is now launched in 13 countries around the world, with an additional 6 planned in the coming months. Since approval in the U.S., more than 25,000 patients have been treated with TEPEZZA. We're continuing to build momentum by expanding awareness and broadening the prescriber base, including endocrinologists and ophthalmologists, to reach more eligible patients. Looking ahead, the advancement of our subcutaneous on-body injector for TEPEZZA represents a meaningful step forward.

The phase III data demonstrated comparable efficacy to IV TEPEZZA, supporting a clear path to subcutaneous administration without compromising clinical benefit. This option enhances convenience, enables more sites of care for patients, and has the potential to drive long-term growth. Innovative oncology, the portfolio grew 18% year-over-year, generating approximately $2 billion of sales in the second quarter. IMDELLTRA sales increased 115% year-over-year to $288 million. After years with little meaningful innovation for patients with small cell lung cancer, IMDELLTRA has emerged as the best-in-class treatment option to improve overall survival in the second-line setting. We are seeing strong clinical conviction, rapid adoption across sites of care, and clear differentiation from other available therapies, and IMDELLTRA is supported by NCCN recommendation. While we have made important inroads, there is still significant opportunity to further penetrate the second-line patient population.