Amgen Rare Disease Sales Surge 14% to $5.2B While PE Hits 23.9x
ABBV•Amgen’s acquired Rare Disease portfolio reached $5.2B with 14% year-over-year growth, while Repatha, EVENITY, and TEZSPIRE revenues jumped 36%, 34%, and 52% respectively in FY2025. The stock trades at a 23.9x PE despite 9.1% LTM revenue growth and a 28.4% operating margin, raising questions over offsetting a projected Prolia/Xgeva sales decline.
1. Robust Portfolio Growth
Amgen’s acquired Rare Disease business delivered $5.2 billion in sales, up 14% year-over-year. Key growth drivers included Repatha with 36% growth, EVENITY up 34%, and TEZSPIRE soaring 52% in FY2025, while the MariTide obesity candidate advances through Phase 3 toward a potential $100 billion market.
2. Solid Fundamentals and Valuation
Last-twelve-month revenue growth stood at 9.1% with a three-year average of 12.5%, and operating margin averaged 24.6% over three years, rising to 28.4% in the LTM period. Free cash flow margin reached 23.1%, yet shares trade at a 23.9x PE multiple, matching the S&P biotech median despite stronger growth and margins.
3. Bull and Bear Outlook
Bull proponents argue that expansion of the growth portfolio and successful MariTide trials will offset the inevitable Prolia/Xgeva decline. Bears caution that biosimilar competition and potential IRA adjustments could accelerate sales erosion, creating a revenue gap that current growth drivers may not fill, pressuring near-term earnings.
