AMGEN INC: Your 2025 Annual Performance Snapshot

Curious about Amgen's 2025 performance? We've distilled their latest annual report into a clear, comprehensive overview, cutting through the jargon to show you what drove their business and what lies ahead.

Business Overview

Amgen stands as a leading biotechnology company, dedicated to discovering, developing, manufacturing, and delivering innovative human therapies for serious illnesses. The company focuses its efforts across key therapeutic areas, including oncology/hematology, cardiovascular disease, inflammation, bone health, neuroscience, and nephrology. Amgen applies its deep scientific expertise and advanced manufacturing capabilities to bring novel medicines to patients worldwide.

A Year of Strong Growth and Strategic Expansion

Amgen delivered a robust performance in 2025. The company successfully integrated a major acquisition while simultaneously advancing its core business, which generated significant financial gains.

Financial Performance Highlights

• Total Revenue: Amgen's total revenue impressively reached $31.9 billion, marking a substantial 10.4% increase from $28.9 billion in 2024. This growth accelerated from the 4.3% increase observed between 2023 and 2024.
• Product Sales: Core product sales climbed to $30.9 billion, up 10.6% from $27.95 billion in 2024.
• Net Income: The company reported a strong $9.5 billion in net income, a healthy 15.8% jump from $8.2 billion in 2024. This increase reflects improved operational efficiency and synergies from its recent acquisition.
• Diluted Earnings Per Share (EPS): Diluted EPS rose to $17.50, an increase of 16.7% from $15.00 in 2024, delivering solid returns for shareholders.

Management Discussion & Analysis (MD&A) Insights

A significant portion of Amgen's revenue growth stemmed from the successful integration of Horizon Therapeutics, which the company acquired in October 2023. Horizon contributed $4.0 billion to total revenue in 2025, up from $3.8 billion in 2024. This contribution primarily came from its key rare disease medicines, such as Tepezza® (for thyroid eye disease) and Krystexxa® (for chronic refractory gout). Beyond the acquisition, Amgen's established product portfolio also achieved strong organic growth, with non-Horizon product sales increasing by approximately 11.1%. This growth was driven by sustained demand for key products like Repatha® (for high cholesterol), Evenity® (for osteoporosis), and Blincyto® (for a type of leukemia), alongside promising uptake of newer launches.

Amgen remains deeply committed to its pipeline. In 2025, the company invested $5.5 billion in Research and Development (R&D), representing approximately 17% of its total revenue. This significant investment supports a robust pipeline of over 30 clinical programs, showing notable progress in oncology, cardiovascular disease, and inflammation. Several late-stage assets are nearing regulatory submission, and Amgen continues to explore new indications for existing therapies, promising future growth drivers. The company's operational efficiency initiatives and strategic pricing management also contributed to the improved net income and EPS performance.

Financial Health

Amgen maintains a solid financial position. The company generated $12.0 billion in operating cash flow in 2025, underscoring its ability to fund operations, R&D, and shareholder returns. While the Horizon acquisition increased total debt to approximately $60 billion, Amgen's strong cash generation and disciplined financial management ensure this debt remains manageable, supported by a clear plan for reduction. The company holds sufficient liquidity to meet its short-term and long-term obligations. Amgen returned value to shareholders during the year through $4.5 billion in dividends and $3.0 billion in share repurchases.

Competitive Position

Amgen operates within a highly competitive global biopharmaceutical market. Its competitive advantages arise from robust research and development capabilities, a diverse portfolio of innovative medicines addressing significant unmet medical needs, and established market leadership in several therapeutic areas, including oncology, cardiovascular disease, and inflammation. The company competes with large pharmaceutical companies, smaller biotechnology firms, and generic/biosimilar manufacturers. Key competitive factors include product efficacy and safety, speed to market, patent protection, pricing, and market access. Amgen continually invests in its pipeline and manufacturing capabilities to maintain and enhance its competitive standing.

Risk Factors

Investors should be aware of several key risks. These include intense competition from biosimilars and novel therapies, potential delays or failures in clinical trials, evolving regulatory landscapes and pricing pressures, and the ongoing challenge of patent expirations for established products. Integrating large acquisitions like Horizon also carries execution risks, including the ability to realize anticipated synergies and retain key personnel. Economic downturns, global supply chain disruptions, and product liability claims also represent potential risks to the company's operations and financial results.

Future Outlook

Looking ahead, Amgen's strategy focuses on three core pillars:

1. Driving innovation: Advancing its robust pipeline and exploring new therapeutic areas.
2. Global expansion: Increasing market penetration, particularly in emerging markets.
3. Strategic business development: Pursuing targeted acquisitions and partnerships to enhance its portfolio.

Management anticipates continued revenue growth in 2026, projecting total revenue between $33.5 billion and $34.5 billion. They expect diluted EPS to range from $18.20 to $19.00, reflecting confidence in their strategic direction and pipeline potential. The company remains committed to disciplined capital allocation, including debt reduction and continued shareholder returns.