AMGN Drug Manufacturers - General
Amgen Inc.
Amgen discovers, develops, manufactures, and sells medicines — mostly biologics — for bone health (Prolia, EVENITY, XGEVA), cholesterol (Repatha), inflammation (Otezla, ENBREL, TEZSPIRE), cancer, and rare diseases from its 2023 Horizon acquisition (TEPEZZA, KRYSTEXXA). FY2025 product sales rose 10% to $35.1 billion, 73% of them in the U.S. Its biggest product, Prolia, lost U.S. patent protection in February 2025 and faces biosimilar competition, while Amgen is running six Phase 3 studies of its obesity drug MariTide. In July 2026 Amgen disclosed a cybersecurity incident in which data, including patient health information, was taken from third-party cloud environments.
Last updated
Analysis last edited: October 7, 2026 · Financial data fetched: October 7, 2026 11:56 (SEC EDGAR) · Source 10-K filed: February 13, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
Company profile
- Legal name
- AMGEN INC
- Headquarters
- THOUSAND OAKS, CA
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NASDAQ: AMGN
- Industry
- Drug Manufacturers - General
- CIK
- 318154
- Website
- https://www.amgen.com/ ↗
Workforce (as of FY2025 year-end)
Employees
31,500
Source: Form 10-K (FY2025) cover page and business description
02
Earnings calendar
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2026
Quarter end: September 2026. In past years, Q3 results were released 30–35 days after quarter end (Nov 4, 2025; Oct 30, 2024; Oct 31, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 30–37 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2026 | Jun 30, 2026 | Aug 4, 2026 (+35 days) | Aug 5, 2026 10-Q (+36 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 30, 2026 (+30 days) | May 1, 2026 10-Q (+31 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 3, 2026 (+34 days) | Feb 13, 2026 10-K (+44 days) |
| Q3 FY2025 | Sep 30, 2025 | Nov 4, 2025 (+35 days) | Nov 5, 2025 10-Q (+36 days) |
| Q2 FY2025 | Jun 30, 2025 | Aug 5, 2025 (+36 days) | Aug 6, 2025 10-Q (+37 days) |
| Q1 FY2025 | Mar 31, 2025 | May 1, 2025 (+31 days) | May 2, 2025 10-Q (+32 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 4, 2025 (+35 days) | Feb 14, 2025 10-K (+45 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 30, 2024 (+30 days) | Oct 31, 2024 10-Q (+31 days) |
| Q2 FY2024 | Jun 30, 2024 | Aug 6, 2024 (+37 days) | Aug 7, 2024 10-Q (+38 days) |
| Q1 FY2024 | Mar 31, 2024 | May 2, 2024 (+32 days) | May 3, 2024 10-Q (+33 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 6, 2024 (+37 days) | Feb 14, 2024 10-K (+45 days) |
| Q3 FY2023 | Sep 30, 2023 | Oct 31, 2023 (+31 days) | Oct 31, 2023 10-Q (+31 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.
03
Flagship products & services
Bone health
Prolia, EVENITY, XGEVA
Examples: Denosumab (Prolia/XGEVA), romosozumab (EVENITY)
$8.6B combined; Prolia faces biosimilars after its U.S. patent expired in February 2025.
Cardiovascular
Repatha
Examples: Evolocumab (PCSK9 inhibitor)
$3.0B, up 36%; FDA broadened its approved use in August 2025.
Inflammation
Otezla, ENBREL, TEZSPIRE
Examples: Apremilast, etanercept, tezepelumab
TEZSPIRE grew 52% to $1.5B.
Rare disease and oncology
TEPEZZA, KRYSTEXXA, BLINCYTO, KYPROLIS
Examples: From Horizon and Amgen's oncology portfolio
TEPEZZA and KRYSTEXXA came with Horizon in October 2023.
Pipeline
MariTide
Examples: Maridebart cafraglutide
An antibody-peptide conjugate for obesity in six global Phase 3 studies.
Figures and descriptions are from the FY2025 Form 10-K.
04
Recent strategic focus
FY2025 developments from the 10-K, and 2026 events from 8-Ks.
Cybersecurity incident
Unauthorized activity in third-party cloud environments led to exfiltration of data including patient health information; disclosed July 31, 2026.
Source: 8-K filed 2026-07-31
CFO change
Peter Griffith retired as CFO on August 31, 2026; Thomas Dittrich became CFO on September 1, 2026.
Source: 8-K filed 2026-05-19
New debt
In February 2026 Amgen sold $4.0B of senior notes due 2031–2056.
Source: 8-K filed 2026-02-19
Capex ÷ D&A (FY2025)
0.36x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$1,858M ÷ $5,167M = 0.36x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
19.8%
formularesearch & development expense ÷ revenue × 100
e.g.$7,272M ÷ $36,751M × 100 = 19.8%
M&A spend (5-year total)
$33.41B
Latest year: $53M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $880M in FY2021 to $1.86B in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
05
Key figures at a glance
FY2021–FY2025, 5 years.
Revenue (FY2025)
$36.75B
As reported in the 10-K
Revenue CAGR (4 years)
+9.1%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($36,751M ÷ $25,979M) ^ (1÷4) − 1 = 9.1%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
24.7%▼caution
-4.7pt vs. 4 years ago
formulaoperating income ÷ revenue × 100
e.g.$9,080M ÷ $36,751M × 100 = 24.7%
ROE (FY2025)
106.1%▲favorable
5-year average: 104.8%
As reported in the 10-K
P/B (FY2025 end)
20.37x
formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)
e.g.23.0x × $14.23 ÷ $16.07 = 20.37x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
15.6x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($177,353M + $54,604M − $9,129M) ÷ ($9,080M + $5,167M) = 15.6x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +9.1% a year over 4 years (strong growth)
From $25.98B in FY2021 to $36.75B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 29.4% → 24.7%
How much operating profit is left per $100 of revenue. It moved -4.7 points over 4 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is 9.6% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 5 of 5 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 104.8% over 5 years (latest: 106.1%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
06
Business model
Amgen discovers, develops, manufactures, and sells human therapeutics — mostly biologics, plus some small molecules and biosimilars — and reports one operating segment. In the U.S. it sells almost entirely to pharmaceutical wholesalers.
01 what it draws on
Inputs & resources
- R&D ($7.3B in FY2025)
- Biologics manufacturing
- About 31,500 staff in over 50 countries
02 what it does
Activities
- Discovering and developing medicines
- Manufacturing biologics
- Marketing in the U.S., Europe, Japan, and other markets
03 who it serves
Customers
- Pharmaceutical wholesalers (McKesson, Cencora, Cardinal Health), hospitals, and specialty pharmacies
04 how money comes in
How it earns
- Product sales net of rebates and discounts
- Collaboration and other revenue
How the business makes money
- Total product sales $35.1B (+10%) in FY2025: U.S. $25.7B, rest of world $9.5B.
- Fastest growers: TEZSPIRE (+52%), Repatha (+36%), EVENITY (+34%), BLINCYTO (+28%).
- ENBREL fell 33% on a 36% lower net selling price.
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Prolia
4,414 (13%)Repatha
3,016 (9%)Otezla
2,265 (6%)ENBREL
2,226 (6%)EVENITY
2,100 (6%)XGEVA
2,084 (6%)TEPEZZA
1,903 (5%)BLINCYTO
1,559 (4%)Nplate
1,524 (4%)TEZSPIRE
1,478 (4%)KYPROLIS
1,412 (4%)Aranesp
1,389 (4%)KRYSTEXXA
1,340 (4%)Vectibix
1,175 (3%)Other products
7,263 (21%)
Source: Form 10-K (FY2025) — MD&A, Product sales Amgen reports one segment; this is product sales by product. Profit isn't disclosed by product.
07
Where it earns
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 73% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
25,656 (73%)Rest of world
9,492 (27%)
Source: Form 10-K (FY2025) — Item 1, product sales by geography Product sales only; total revenues including other revenue were $36.8B.
08
Contract structure
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Amgen sells products mainly through wholesalers, and reports sales net of rebates, chargebacks, and discounts. Net prices are shaped by government programs (340B, Medicare) and commercial discounts, which cut ENBREL's net selling price by 36% in 2025.
Sales to U.S. wholesalers
McKesson, Cencora, and Cardinal Health together: 77% of worldwide gross revenues
Typical term: Substantially all U.S. sales go through wholesalers
Each exceeded 10% of total revenues in 2023–2025.
International sales
Rest of world: $9.5B of product sales
Typical term: Through affiliates and partners
Source: Form 10-K (FY2025) — Item 1, Marketing, Distribution and Selected Marketed Products
09
Alliances & capital ties
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Business partnership
Kyowa Kirin
In January 2026 the companies agreed to end their rocatinlimab collaboration, with Kyowa Kirin taking full control of global development and commercialization.
Source: Form 10-K (FY2025) — Item 1
10
Customers & suppliers
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Pharmaceutical wholesalers, which distribute Amgen's products to healthcare providers in the U.S., plus customers in Europe, Japan, and other markets.
Named by the company
- McKesson, Cencora, and Cardinal Health — Each was more than 10% of total revenues in 2023–2025; together 77% of worldwide gross revenues in 2025.Form 10-K (FY2025) — Item 1
What the filings disclose
- The U.S. was 73% of 2025 product sales. (Form 10-K (FY2025), Item 1)
Suppliers
Amgen makes most of its biologics itself and relies on third-party cloud providers for some data systems.
Named by the company
None named in the 10-K or the company’s press releases.
What the filings disclose
- The July 2026 incident involved data stored in cloud environments hosted by third-party cloud service providers. (8-K filed 2026-07-31)
11
Competitors & peers
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Amgen's 10-K lists significant competitors for each principal product (not exhaustive), including biosimilars and generics. Highlights are below.
Competitors named in the 10-K
Otezla and ENBREL (inflammation)
TEZSPIRE (asthma)
EVENITY (Japan)
- Asahi Kasei Pharmasite ↗
BLINCYTO, Nplate, Vectibix
Peer group the company chose
2025 peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Biotechnology and pharmaceutical companies Amgen competes with for executive talent, with market capitalization and revenue of 0.25–4.0x Amgen's; all of them list Amgen as a peer.
- AbbViesite ↗
- AstraZenecasite ↗
- Biogensite ↗
- Bristol-Myers Squibbsite ↗
- Eli Lillysite ↗
- Gilead Sciencessite ↗
- GSKsite ↗
- Johnson & Johnsonsite ↗
- Merck & Co.site ↗
- Novartissite ↗
- Pfizersite ↗
- Regeneron Pharmaceuticalssite ↗
- Rochesite ↗
- Sanofisite ↗
- Vertex Pharmaceuticalssite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
12
M&A history
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
Amgen's largest recent deal was Horizon Therapeutics, which added rare-disease medicines.
Cash spent on acquisitions, FY2021–FY2025: $33.41B
Oct 2023
Horizon Therapeutics plc
About $27B cash paid for businesses in 2023 (net of cash acquired)
Older deal, core to today's businessRare-disease medicines including TEPEZZA and KRYSTEXXA.
- Stated purpose (company)
- Not stated in the FY2025 10-K sections reviewed; TEPEZZA and KRYSTEXXA had $3.2B of 2025 sales.
The price shown is the 2023 cash paid for acquisitions per XBRL, mostly Horizon.
13
Five years of financials
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|
| Income statement ($M) | |||||
| Revenue | 25,979 | 26,323 | 28,190 | 33,424 | 36,751 |
| Operating income | 7,639 | 9,566 | 7,897 | 7,258 | 9,080 |
| Pretax income | 6,701 | 7,346 | 7,855 | 4,609 | 8,976 |
| Net income (attributable) | 5,893 | 6,552 | 6,717 | 4,090 | 7,711 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 1.3% | 7.1% | 18.6% | 10.0% |
| Operating margincalcoperating income ÷ revenue × 100 | 29.4% | 36.3% | 28.0% | 21.7% | 24.7% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 22.7% | 24.9% | 23.8% | 12.2% | 21.0% |
| Balance sheet ($M) | |||||
| Total assets | 61,165 | 65,121 | 97,154 | 91,839 | 90,586 |
| Total equity | 6,700 | 3,661 | 6,232 | 5,877 | 8,658 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 33,309 | 38,945 | 64,613 | 60,099 | 54,604 |
| Equity ratio | 11.0% | 5.6% | 6.4% | 6.4% | 9.6% |
| ROE | 88.0% | 126.5% | 135.8% | 67.6% | 106.1% |
| Cash flow ($M) | |||||
| Operating CF | 9,261 | 9,721 | 8,471 | 11,490 | 9,958 |
| Investing CF | 733 | -6,044 | -26,204 | -1,046 | -1,943 |
| Financing CF | -8,271 | -4,037 | 21,048 | -9,415 | -10,859 |
| Free cash flowcalccash flow from operations − capital expenditures | 8,381 | 8,785 | 7,359 | 10,394 | 8,100 |
| Cash and equivalents | 7,989 | 7,629 | 10,944 | 11,973 | 9,129 |
| Per share & other | |||||
| EPS ($) | 10.28 | 12.11 | 12.49 | 7.56 | 14.23 |
| BVPS ($) | 12.00 | 6.86 | 11.64 | 10.95 | 16.07 |
| Dividend per share ($) | 7.22 | 7.95 | 8.64 | 9.13 | 9.66 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 70.2% | 65.6% | 69.2% | 120.8% | 67.9% |
| P/E (x) | 21.9 | 21.7 | 23.1 | 34.5 | 23.0 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 14.0 | 13.4 | 17.4 | 14.7 | 15.6 |
| P/B (x)calcP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share) | 18.74 | 38.31 | 24.74 | 23.81 | 20.37 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
14
Is ROIC above WACC?
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
11.1%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$9,080M × (1 − 21%) ÷ $64,619M × 100 = 11.1%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
6.39%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $177.35B ÷ ($177.35B + $54.6B) = 76.5%
e.g.Debt weight: $54.6B ÷ ($177.35B + $54.6B) = 23.5%
e.g.WACC: 7.1% × 76.5% + 5.0% × (1 − 21%) × 23.5% = 6.39%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
WACC 6.39% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4%
- β
- 0.57 (price-derived adjusted beta, but correlation with the market is low (R² 0.03), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 7.13%
- Cost of debt
- 5.05%
- Effective tax rate
- 21%
- Capital structure (equity : debt)
- 76% : 24%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 6.39%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.
Initial β: 0.57 (price-derived adjusted beta. Raw β 0.35, R² 0.03, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.352 + 0.33 = 0.566
termsβ (beta)
Period 2024-04-12–2026-10-06, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.4.0% + 0.57 × 5.5% = 7.1%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulaP/E × net income ≈ period-end share price × shares outstanding (= market cap)
termsP/E · Net income (attributable to the company) · Market capitalization · Market value of equity
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (FY2025)
2.8%
Perpetual FCF growth: g = r − FCF ÷ EV = 6.4% − 3.6%
Past FCF growth (FY2021–FY2025)
-0.8%
Compound annual rate, 4 years
Past revenue growth (FY2021–FY2025)
+9.1%
Compound annual rate, 4 years
Inputs (FY2025): free cash flow $8.1B (operating CF − capex); enterprise value $222.83B = market cap $177.35B + debt $54.6B − cash and short-term investments $9.13B; r = WACC of 6.4% using this page’s default assumptions (β 0.57, risk-free 4.0%, market premium 5.5%).
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$225B
FCF $8.1B ÷ (6.4% − 2.8%)
Theoretical ÷ actual enterprise value
1.01x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 4.4% | 5.4% | 6.4% | 7.4% | 8.4% |
|---|---|---|---|---|---|
| 0% | 0.83x | 0.67x | 0.57x | 0.49x | 0.43x |
| 2% | 1.51x | 1.07x | 0.83x | 0.67x | 0.57x |
| 4% | 9.09x | 2.60x | 1.51x | 1.07x | 0.83x |
| 6% | — | — | 9.09x | 2.60x | 1.51x |
| 8% | — | — | — | — | 9.09x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap and enterprise value use the fiscal year-end price, not today’s.
16
Earnings quality
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.68x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -2.5%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 101%
Most profit comes from core operations.
- !
Days sales outstanding: 69 → 95 days
Receivables are growing faster than revenue — worth checking for looser collection terms or channel stuffing.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaperiod-end receivables ÷ revenue × 365
formulaperiod-end inventory ÷ revenue × 365
termsInventory · Revenue (net sales)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$9,958M ÷ $7,711M = 1.29x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$9,080M ÷ $8,976M × 100 = 101%
termsOperating income · Income before income taxes (pretax income)
formulaperiod-end receivables ÷ revenue × 365
e.g.$9,570M ÷ $36,751M × 365 = 95 days
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Strengths & weaknesses
Strengths
1. Growing newer brands
Repatha, EVENITY, TEZSPIRE, and BLINCYTO each grew more than 25% in 2025, and total product sales rose 10%.
Evidence: Form 10-K (FY2025) MD&A
2. Obesity pipeline
MariTide is in six global Phase 3 studies, covering weight management, cardiovascular disease, heart failure, and sleep apnea in people with obesity.
Evidence: Form 10-K (FY2025) Item 1
3. Strong cash generation
Operating cash flow was about $10B in 2025, supporting $5.1B of dividends and debt repayment.
Evidence: SEC EDGAR XBRL
4. Rising dividend
Dividends per share rose every year from $7.22 (FY2021) to $9.66 (FY2025).
Evidence: SEC EDGAR XBRL
Weaknesses
1. Biosimilar erosion
Prolia's U.S. patents expired in February 2025 and in select European countries in November 2025; Amgen expects accelerated Prolia sales erosion in 2026 as multiple biosimilars launch.
Evidence: Form 10-K (FY2025) MD&A
2. Heavy debt
Debt rose to $64.6B at year-end 2023, the year of the Horizon acquisition, and was about $54.6B at year-end 2025, against stockholders' equity of only $8.7B.
Evidence: SEC EDGAR XBRL
3. Pricing pressure
ENBREL's net selling price fell 36% in 2025 from 340B mix, Medicare Part D redesign, and higher commercial discounts.
Evidence: Form 10-K (FY2025) MD&A
4. Wholesaler concentration
Three U.S. wholesalers accounted for 77% of worldwide gross revenues.
Evidence: Form 10-K (FY2025) Item 1
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What draws investors to it
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
23.0x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
2.95%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
68%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
4.6%
(Operating CF − capex) ÷ market cap
1. Steady dividend and cash flow
Dividends per share rose every year from $7.22 to $9.66 over FY2021–FY2025, funded by about $10B a year of operating cash flow.
- What has to hold
- Newer products offset biosimilar losses.
- The other side
- Debt is large and Prolia, the top seller, is now exposed to biosimilars.
Evidence: SEC EDGAR XBRL; Form 10-K (FY2025)
2. Obesity option
MariTide gives Amgen a candidate in the obesity market, now in six Phase 3 studies.
- What has to hold
- Phase 3 results are positive and differentiated.
- The other side
- Results aren't known, and the market already has established obesity drugs.
Evidence: Form 10-K (FY2025) Item 1
P/E, dividend yield, and payout ratio use the FY2025 year-end share price. ROE looks extremely high because stockholders' equity is small relative to earnings.
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Resilience
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
2.0x
$9.13B vs. $4.6B
Interest coverage (operating income ÷ interest expense)
3.3x
$9.08B vs. $2.76B
Free cash flow ÷ dividends paid
1.6x
$8.1B vs. $5.12B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | -17.4% in FY2023 ($9.57B → $7.9B) | Not yet, as of FY2025 |
Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Diversified portfolio
Fourteen products each sold more than $1B in 2025, so no single product dominates.
Source: Form 10-K (FY2025), MD&A
Cash generation
Operating cash flow of about $10B in 2025.
Source: SEC EDGAR XBRL
Leverage
About $54.6B of debt, refinanced in part with $4.0B of new notes in February 2026.
Source: SEC EDGAR XBRL; 8-K filed 2026-02-19
Price and patent exposure
Biosimilars and government pricing programs can cut sales of established products quickly.
Source: Form 10-K (FY2025), MD&A
20
Risks (including geopolitical)
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).
- 1Competition & technology shift
Biosimilars and branded competition
- Company disclosure (summarized from the 10-K)
- Denosumab biosimilars now compete with Prolia and XGEVA, and the 10-K lists branded competitors for each major product, such as Novartis's Leqvio against Repatha and Regeneron/Sanofi's Dupixent against TEZSPIRE.
- Company’s stated mitigation
- Growth from newer brands and the pipeline.
- This site’s assessment
- Impact High / Likelihood High
- 2Law & regulation
U.S. drug pricing
- Company disclosure (summarized from the 10-K)
- Government programs and Medicare changes are lowering net prices, as with ENBREL.
- Company’s stated mitigation
- Volume growth in newer products.
- This site’s assessment
- Impact High / Likelihood High
- 3Information security
Cybersecurity incident
- Company disclosure (summarized from the 10-K)
- In July 2026 Amgen found that data — including proprietary data and patient protected health information — had been exfiltrated from third-party cloud environments; the investigation is ongoing.
- Company’s stated mitigation
- Response plan activated; no impact found yet on products, manufacturing, financial reporting, or supply to patients.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Demand & macro
Pipeline outcomes
- Company disclosure (summarized from the 10-K)
- Value depends on Phase 3 results for MariTide and others; in 2026 Amgen dropped plans to seek first-line approval for bemarituzumab and ended the rocatinlimab collaboration.
- Company’s stated mitigation
- A broad pipeline.
- This site’s assessment
- Impact Med / Likelihood Med
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What to watch going forward
- Prolia and XGEVA sales as biosimilars spread.
- MariTide Phase 3 results.
- Findings from the July 2026 cybersecurity investigation.
- Debt reduction.
- The new CFO, Thomas Dittrich, from September 2026.
22
Source documents
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 7, 2026 · Financial data fetched: October 7, 2026 11:56 (SEC EDGAR) · Source 10-K filed: February 13, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Amgen Inc.’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.