Amgen Q2 2025: Profit Surges 92% Amid Product Portfolio Shift

Global biopharmaceutical leader Amgen recently filed its quarterly report for the second quarter ending June 30, 2025. The filing reveals a period of significant growth and transition. Let's dig into the numbers to understand the key drivers of the company's performance and its strategy moving forward.

Strong Growth on Top and Bottom Lines

Amgen reported a strong quarter, with total revenues rising 9% year-over-year to $9.2 billion, driven by a 9% increase in product sales to $8.8 billion. The company's profitability saw an even more dramatic rise. Operating income jumped 39% to $2.7 billion, and net income surged 92% to $1.4 billion. This impressive bottom-line growth was not just from higher sales; Amgen also effectively managed its expenses, with Cost of Sales and Selling, General, and Administrative (SG&A) costs declining 7% and 5%, respectively.

This visual breaks down how Amgen's $9.2 billion in quarterly revenue flowed through its costs to generate $1.4 billion in net income:

A Shifting Product Portfolio

The source of Amgen's sales growth reveals a clear shift within its product lineup. While newer drugs are showing impressive gains, some of the company's long-standing blockbusters are facing headwinds.

Key Growth Drivers (Q2 2025 vs. Q2 2024):

• TEZSPIRE (asthma): Sales surged 46% to $342 million.
• BLINCYTO (cancer): Grew 45% to $384 million.
• EVENITY (osteoporosis): Increased 32% to $518 million.
• Repatha (cholesterol): Climbed 31% to $696 million.

These products, along with others including the newly launched PAVBLU ($130 million in sales), are successfully gaining market share, primarily through increased sales volume.

Facing Challenges:

• ENBREL (arthritis): Sales declined 34% to $604 million.
• XGEVA (bone health): Sales fell 5% to $532 million, which the company attributes to unfavorable changes in estimated sales deductions and lower volume.
• Prolia (osteoporosis): Sales decreased 4% to $1.1 billion, driven by a lower net selling price.

This dynamic highlights the typical lifecycle in the pharmaceutical industry, where the success of a company's pipeline is crucial to offset declines in older, established medicines.

Investing in the Future Pipeline

While managing its current portfolio, Amgen is also boosting its investment in future growth. Research and Development (R&D) expenses increased by 21% to $1.7 billion for the quarter. According to the filing, this increase was primarily driven by spending on later-stage clinical programs, including its highly anticipated obesity drug candidate, MariTide. This ramp-up in R&D signals a clear focus on developing the next generation of therapies.

In summary, Amgen's second-quarter results show a company successfully navigating a period of transition. Strong revenue growth and disciplined cost control led to a sharp rise in profitability. While sales of legacy products are declining, a portfolio of high-growth drugs is more than compensating for the shortfall. The company's significant investment in R&D, particularly in promising areas like obesity, reinforces its strategy for securing long-term growth. As Amgen continues to manage patent cycles and pricing pressures, its newer products and pipeline will remain central to its success.