Amgen’s Rare Disease Hits $5.2B; MariTide Obesity Drug Targets $100B Market
JNJ•Amgen’s Rare Disease portfolio rose 14% to $5.2 billion as Repatha, EVENITY and TEZSPIRE grew 36%, 34% and 52% in FY2025, while LTM revenue increased 9.1%. Analysts question whether these drivers and the phase 3 MariTide obesity candidate targeting a $100 billion market can offset Prolia/Xgeva sales erosion from biosimilar competition.
1. Strong Growth in Key Therapeutics
Amgen’s acquired Rare Disease portfolio grew 14% year-over-year to $5.2 billion, with flagship products Repatha, EVENITY and TEZSPIRE posting FY2025 growth of 36%, 34% and 52%, respectively. Additionally, the MariTide obesity candidate is advancing through a large Phase 3 program targeting a potential $100 billion global market by 2030.
2. Solid Margins and Modest Valuation
Last-twelve-month revenue climbed 9.1%, with a three-year average growth of 12.5%. Operating margin reached 28.4% LTM (24.6% three-year average) and free cash flow margin stood at 23.1%, while the stock trades at a PE multiple of 23.9, in line with S&P medians.
3. Debate Over Prolia/Xgeva Erosion
Investors are split on whether new product momentum can offset the imminent sales decline from Prolia and Xgeva facing biosimilar competition and patent transitions. Bears warn of rapid revenue losses and IRA pricing pressures, while bulls expect growth drivers and pipeline advances to bridge the gap and sustain earnings.
