CVS Health to Remove Amgen’s Prolia and Xgeva from Preferred Lists
CVS Health will remove Amgen’s Prolia and Xgeva from certain preferred drug lists on April 1, replacing them with lower-cost bone disease treatments, potentially reducing formulary access. The decision affects millions of CVS-covered members and could pressure Amgen’s related sales volumes.
1. CVS Health Removes Amgen’s Bone Disease Therapies
CVS Health announced it will remove Amgen’s Prolia and Xgeva from select preferred drug lists effective April 1, replacing them with lower-cost alternatives such as denosumab biosimilars and generic bisphosphonates. Prolia and Xgeva generated combined U.S. sales of approximately $3.2 billion in 2025, representing nearly 12% of Amgen’s total revenue last year. CVS’s decision, affecting an estimated 4.5 million Medicare Part D and commercial plan members, is expected to pressure volumes and average selling prices for these products in the second half of 2026. Amgen has indicated it will pursue enhanced rebate agreements and patient support programs to mitigate the impact.
2. Q4 Earnings and Revenue Outperform Expectations
Amgen reported fourth-quarter 2025 adjusted earnings per share of $5.29 and total revenue growth of 7%, both surpassing consensus analyst forecasts. Strong volume increases in oncology and cardiovascular franchises drove the beat, with Repatha injections up 18% year-on-year and Kyprolis oncology sales expanding by 12%. The company reiterated full-year 2026 guidance for mid-single-digit revenue growth, citing anticipated launches of the late-stage MariTide obesity candidate and ongoing global roll-out of Tezspire. Free cash flow reached $4.1 billion in the quarter, bolstering capacity for continued share repurchases and strategic in-licensing.
3. Analyst Ratings and Long-Term Outlook
Following the quarter, Cowen & Co. maintained a Buy rating on Amgen and raised its 12-month price target on the strength of the company’s diversified portfolio and robust pipeline. Key growth drivers include positive cardiovascular data for Repatha and upcoming readouts from Phase 3 MariTide trials, which target the obesity market projected to exceed $20 billion by 2028. While loss of exclusivity on Prolia and Xgeva presents headwinds, analysts highlight mitigation through new product launches—Evenity, Imvdeltra and Tezspire—and expect these to offset LOE erosion by 2027. Regulatory reviews of Tavneos remain a risk, but long-term investor sentiment is underpinned by ongoing R&D efficiency gains and strong cash generation.