A biotechnology company that makes medicines for serious illnesses, including the bone-strengthening drug Prolia, the cholesterol-lowering injection Repatha, and the psoriasis treatment Otezla, sold to patients and doctors worldwide. It was founded in 1980 in Thousand Oaks, California, as Applied Molecular Genetics, a name later shortened to "Amgen." Its first CEO famously ran the company from a small trailer so scientists could use the office space, and early experiments included trying to extract oil from shale and accelerate chicken growth.
Prolia and XGEVA biosimilar erosion deepened in Q2 2026, while gross margin hit 72.0% as Horizon acquisition costs continued to fade.
competition cut deeper into Amgen's legacy bone-health franchise. rose 9.5% to $10.1 billion and widened 4.8 points to 72.0%, as lower acquisition-related more than offset the volume and price declines on and . The newer portfolio is carrying growth, but the speed of erosion on the established blockbusters is now the central question.
Key takeaways
widened to 72.0%, up 4.8 points , as cost of sales fell to 28.0% of from lower of acquisition-related assets.
sales fell 32% and sales fell 34% , driven by volume and price declines from competition following their February 2025 U.S. patent expirations.
sales rose 31% to $696 million on 36% volume growth, continuing the volume-led expansion of the newer product portfolio.
Section summaries
Management's Discussion and Analysis
Amgen Q2 2026 total revenues grew 10% to $10.1B on volume-driven product sales, while operating expenses were flat as lower amortization offset higher R&D and profit share costs.
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Total product sales rose 9% to $9.5B in Q2, driven by 9% U.S. and 8% ROW volume growth from brands like , , , , and IMDELLTRA/IMDYLLTRA.
sales declined 4% as a 22% lower net selling price from IRA Medicare Part D price setting was partially offset by favorable sales deduction adjustments.
rose 32.3% to $3.5 billion as operating expenses were flat , with lower offsetting a 7% increase in R&D spend on later-stage programs like .
rose 65.9% to $2.4 billion, and rose 82.6% to $3.5 billion, while the company issued $4.0 billion in new debt and ended the quarter with $14.0 billion in cash.
What changed
Q1 2026 flagged and erosion at 34% and 27% declines; in Q2, Prolia fell 32% and XGEVA fell 34%, showing the erosion is persisting at a similar pace rather than accelerating sharply.
's decline slowed to 4% in Q2 2026 from a 34% drop in Q2 2025, as favorable sales deduction adjustments partially offset the 22% net price decline from IRA Medicare price setting that took effect in 2026.
continued its recovery, reaching 72.0% in Q2 2026 from 67.2% a year ago and 68.2% in Q1 2026, as the step-up that had depressed margins through 2024 and early 2025 continues to roll off.
What to watch
Q3 2026 and sales to see if erosion stabilizes near the 32-34% range or deepens further.
Q3 2026 sales under the first full year of IRA Medicare price setting, to gauge whether the Q2 moderation from favorable adjustments is repeatable.
H2 2026 IRS Tax Court decision on the 2010-2015 Puerto Rico profit allocation, with potential liability up to $5.1 billion.
Q3 2026 as cost of sales faces ongoing mix pressure on legacy products alongside the remaining .
and sales fell 32% and 34%, respectively, due to volume and price declines from biosimilar competition following U.S. patent expirations in February 2025.
ENBREL sales declined 4% as a 22% lower net selling price from IRA Medicare Part D price setting and increased mix was partially offset by favorable sales deduction adjustments.
Operating expenses were flat at $6.5B; cost of sales decreased to 28.0% of total revenues on lower acquisition-related , while R&D rose 7% on higher spend for later-stage programs like .
increased 66% to $2.4B, benefiting from lower , reduced , and a favorable comparison in other expense, though the rose to 14.2%.
Cash and equivalents reached $14.0B; the company issued $4.0B in new debt, repaid €750M in notes, and expects full-year 2026 of approximately $2.6B.
Quantitative and Qualitative Disclosures About Market Risk
Information about our market risk is disclosed in Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk, of our Annual Report on Form 10-K for the year ended December 31, 2025, and is incorporated herein by reference. There were no material changes during…
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Information about our market risk is disclosed in Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk, of our Annual Report on Form 10-K for the year ended December 31, 2025, and is incorporated herein by reference. There were no material changes during the six months ended June 30, 2026, to the information provided in Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk, of our Annual Report on Form 10-K for the year ended December 31, 2025.
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See Part I—Note 13, Contingencies and commitments, to the condensed consolidated financial statements included in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026, for discussions that are limited to certain recent developments concernin…
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See Part I—Note 13, Contingencies and commitments, to the condensed consolidated financial statements included in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026, for discussions that are limited to certain recent developments concerning our legal proceedings. Those discussions should be read in conjunction with Part IV—Note 20, Contingencies and commitments, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025.
Pricing reforms, regulatory actions, and cybersecurity threats materially pressure Amgen's profitability and operations.
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U.S. drug pricing reforms, including IRA-mandated Medicare price setting for and and the MFN pricing initiative, are significantly reducing and profitability.
The FDA has proposed withdrawing approval of , alleging unreliable data and lack of substantial evidence of effectiveness, creating a material regulatory and commercial risk.
State-level pricing boards, 340B program expansion, and commercial payer consolidation are intensifying pricing and access pressures across Amgen's portfolio.
Cybersecurity incidents, including a recent data exfiltration and persistent third-party vendor breaches, threaten operational continuity and sensitive data integrity.
Manufacturing and supply chain vulnerabilities, including single-source CMOs for and in conflict zones, risk product shortages and recalls.