Amgen's Strong Q3 2025 Performance: Volume Growth and Biosimilar Success
Highlights
- Revenue: $9.6 billion (+12% YoY)
- Volume growth: 14%
- Free cash flow: $4.2 billion
- Non-GAAP operating margin: 47%
- Repatha sales: $794 million (+40% YoY)
- EVENITY sales: $541 million (+36% YoY)
- TEZSPIRE sales: $377 million (+40% YoY)
- Biosimilar sales: $775 million (+52% YoY)
- Non-GAAP OI&E expense: $568 million
- Non-GAAP tax rate: 18.2% (+4.8 percentage points YoY)
Amgen has reported an exceptional third quarter of 2025 with a robust 12% increase in revenues year-over-year, totaling $9.6 billion. The company's impressive growth is largely attributable to a 14% surge in volume, reflecting the strength and demand across its diverse product portfolio.
Key Growth Drivers
The company's key growth drivers, including Repatha, EVENITY, TEZSPIRE, and its innovative oncology and biosimilar portfolios, have delivered notable performances. Repatha's sales rose by an impressive 40% year-over-year, reaching $794 million. EVENITY also showed significant growth, with sales up by 36% to $541 million. This strong performance underscores the continuing penetration and acceptance of Amgen's innovative therapies in the market.
TEZSPIRE posted a 40% increase in sales, generating $377 million, while the biosimilar portfolio achieved a substantial 52% rise in sales, contributing $775 million to the company's revenue. These results highlight Amgen's ability to effectively capitalize on biosimilar opportunities, annualizing at $3 billion.
Financial Performance
Amgen's financial position remains robust, with a free cash flow of $4.2 billion, buoyed by operational momentum and stringent management of working capital. The company maintained a solid non-GAAP operating margin of 47%, after significant investments in research and development, focusing on late-stage pipeline programs. Notably, Amgen continues to invest heavily in innovation, with its non-GAAP R&D expenses increasing by 31% year-over-year.
However, the quarter also witnessed some concerns, with a marked increase in the non-GAAP tax rate to 18.2%, rising by 4.8 percentage points year-over-year. Additionally, the non-GAAP OI&E expense registered at $568 million.
Strategic Developments
Strategically, Amgen has launched AmgenNow, a new direct-to-patient platform that facilitates access to Repatha at reduced pricing in the U.S., aiming to broaden patient accessibility. The company remains optimistic about sustaining long-term growth supported by its strong and diverse product pipeline.
Overall, Amgen's performance in the third quarter of 2025 showcases its strategic focus on volume growth, biosimilar expansion, and pipeline innovation, positioning it favorably for future growth trajectories.