Why Amgen's Stock Dropped Despite a Strong Quarter

Amgen's Stock Declines Despite Strong Q2 Performance

Amgen’s stock experienced a significant drop on Wednesday, despite the company reporting a beat-and-raise for its second-quarter results. Investors are closely watching upcoming readouts for the company’s weight-loss drug, MariTide, which could influence future performance.

In the fourth quarter, Amgen plans to release results from two MariTide studies. One study involves the second part of a Phase 2 trial assessing MariTide as a weight management solution. The other evaluates the drug’s effectiveness in treating type 2 diabetes, both in patients with and without obesity. However, some analysts believe these results may not fully address concerns about the drug’s tolerability.

William Blair analyst Matt Phipps noted that the second part of the study only included patients who had achieved at least a 15% weight loss by week 52. Additionally, the 420 mg dose is not being tested in ongoing Phase III trials, which may limit the relevance of the findings to future development.

On Wednesday, Amgen’s stock fell by 5.1%, reaching $284.67. Shares have fallen below both their 50-day and 200-day moving averages, according to MarketSurge research. Analysts suggest that the stock is forming a “cup-with-handle” base, with a potential buy point at $311.28.

Setbacks for Key Products

Despite strong overall earnings, several of Amgen’s key products faced challenges. Prolia, the company’s top-selling drug, saw a 4% decline in sales to $1.12 billion. Amgen attributed this drop to lower net selling prices and warned that lower-cost biosimilars in the U.S. will continue to pressure sales in the second half of the year. However, Prolia still exceeded expectations of $1.09 billion.

Enbrel, another major product, saw a sharp decline in sales, dropping 34% to $604 million. This was largely due to lower pricing and changes in Medicare coverage. The sales figure missed projections of $786 million. Enbrel is used to treat conditions such as arthritis and psoriasis.

Strong Performers in the Quarter

Not all products underperformed. Uplizna, a treatment for two autoimmune diseases, saw a dramatic increase in sales, rising 91% to $176 million—well above analysts’ forecast of $123 million. Uplizna was acquired through Horizon Therapeutics.

Another Horizon drug, Tepezza, generated $505 million in sales, representing a 5% growth and significantly exceeding projections of $353 million. Tepezza is used to treat thyroid eye disease.

Amgen also reported strong growth from its cholesterol drug Repatha and Evenity, an osteoporosis treatment. Both products saw double-digit sales growth and surpassed analyst expectations. In total, the company noted that 15 products achieved double-digit sales growth during the quarter.

Revised Guidance for 2025

Despite mixed results in the second quarter, Amgen raised its full-year guidance. The company now expects to earn between $20.20 and $21.30 per share, excluding certain items, on revenue of $35 billion to $36 billion. This is an improvement from its previous guidance, which projected earnings of $20 to $21.20 per share and revenue of $34.3 billion to $35.7 billion.

Investors remain cautiously optimistic about Amgen’s future, especially as it continues to develop promising therapies like MariTide. However, the company must navigate challenges related to competition, pricing pressures, and regulatory hurdles.