Amgen Reports Strong Q2 Growth Amid Rising R&D Expenses

Amgen reported strong second-quarter results, beating Wall Street expectations with a 9% revenue increase to $9.2 billion and adjusted earnings per share rising 21% to $6.02. The company saw significant growth in sales of its cholesterol drug Repatha, which rose 31%, offsetting declines in Prolia due to biosimilar competition. Despite the positive performance, Amgen faces challenges including rising operating expenses, particularly an 18% increase in research and development spending focused on next-generation therapies such as the experimental weight-loss drug MariTide, with trial results expected by year-end. The company raised its full-year financial outlook, forecasting adjusted earnings per share between $20.20 and $21.30 and revenue of $35 to $36 billion, though concerns remain about margin pressures and regulatory challenges. Analyst Tim Anderson reiterated a Sell rating on Amgen, citing concerns over increasing R&D costs and the company’s trial strategy, which may impact long-term growth and margins beyond 2026. Meanwhile, CEO Robert Bradway emphasized the company’s commitment to innovation and sustainable growth amidst industry-wide pricing pressures and competition from biosimilars.