Amgen's Better Than Expected Q1 Earnings Take Backseat As Eyes Are On MariTide Obesity Data
Amgen Inc. (NASDAQ:AMGN) reported first-quarter sales of $8.15 billion on Thursday, up 9% year over year and beating the consensus of $8.06 billion.
- Product sales grew 11%, primarily driven by 14% volume growth, partially offset by 6% lower net selling price. U.S. sales rose 14%.
- Fourteen products delivered at least double-digit sales growth in the first quarter.
- The launch of Imdelltra (tarlatamab-dlle) in April 2025 in Japan generated $81 million in sales in the quarter. The Phase 3 confirmatory study demonstrated improved overall survival compared to chemotherapy.
Amgen reported adjusted EPS of $4.90, up 24%, beating the consensus of $4.30.
The company also announced a Phase 1 study of AMG 513, which is enrolling people living with obesity following the removal of the clinical hold by the U.S. Food and Drug Administration.
Guidance: Amgen reaffirms fiscal year 2025 revenue of $34.3 billion—$35.7 billion versus a consensus of $35.08 billion. The company expects adjusted EPS of $20-$21.20, compared to a consensus of $20.64.
The company says the guidance includes the estimated impact of implemented tariffs but does not account for any tariffs that could be implemented in the future, including potential sector-specific tariffs.
Last Friday, Amgen announced a $900 million expansion of its Ohio manufacturing facility, bringing the total number of jobs created to 750 and the total investment in Central Ohio to over $1.4 billion.
Since the passage of the Tax Cuts and Jobs Act of 2017, Amgen has invested almost $5 billion in direct capital expenditures in the U.S., generating an additional downstream output to the U.S. economy of approximately $12 billion.
RBC Capital notes that macro and policy topics were absent from the call, likely reflecting the completion of initial concerns. However, obesity was still a key focus.
- “We view the path to the potential value-inflection update of MariTide in 2H25 as relatively steady with few polarizing events and the June update at ADA likely incremental,” analyst Gregory Renza writes.
- On Thursday, RBC adjusted the model to reflect the quarterly and fiscal 2025 guidance, lowering the price target from $324 to $320 while maintaining the Outperform rating.
Cantor analyst Carter Gould writes, “Indeed, we expect the near-term clinical catalyst path to be more compelling, with bemarituzumab read-outs on the horizon, Imdelltra data at ASCO in early June, and the MariTide update at ADA in mid-June.”
- Cantor notes that Bemarituzumab isn't a major focus for investors right now, but positive data could still give the stock a small boost.
- The analyst maintains a Neutral rating and a price target of $305.
Goldman Sachs says investors are worried that in a larger Phase 3 trial, which will start patients on lower doses and gradually increase them, MariTide's effectiveness might drop to around 15%–17%—similar to Novo Nordisk A/S‘ (NYSE:NVO) Wegovy.
- “Overall, we view the report as fairly uneventful, and, while we acknowledge the broader policy overhangs for the sector, we view AMGN as relatively well-positioned and remain constructive as the company continues to execute,” analyst Salveen Richter writes.
- The analyst maintains the Buy rating with a price target of $400.
William Blair writes, “The biggest focus for investors regarding Amgen continues to be the upcoming MariTide results to be presented at the American Diabetes Association (ADA) meeting.”
- Analyst Matt Phipps says, “Overall, we believe there remains a meaningful opportunity for MariTide given the less frequently administered doses, and see the biggest differentiation for the program as a maintenance regimen given every one to three months.”
Price Action: AMGN stock is down 2.27% at $277.34 at the last check on Friday.
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