Estimated 2026 sales: $28.37 billion
2019 sales: $22.2 billion
2019-26 CAGR: 3.56%
Hit hard by patent losses in recent years, Amgen is eying a return to growth in 2020. The company is battling copycats to Neulasta, Neupogen and Sensipar, but it’s also growing its own biosimilar business and launching new meds, including class-leading migraine prevention drug Aimovig.
Overall in 2019, Amgen posted $23.4 billion in total sales, a 2% dip from 2018.
Amid the sales decline, the company in November cut hundreds of jobs at sites on both U.S. coasts and in the field. In the first move, the company cut 149 R&D staffers on the east coast. A move to cut 172 staffers in California and in the field followed the week after.
But looking forward, analysts believe the company will generate 3.56% average annual growth through 2026. Part of the growth push will come from psoriasis pill Otezla, which Amgen nabbed as part of an FTC-mandated sale by Celgene as that Big Biotech sold itself to Bristol Myers Squibb. Amgen plans to file for new indications and launch in new markets to keep the blockbuster on a growth trajectory.
At the same time, the company is defending the blockbuster immunology med against a patent lawsuit from Sandoz. The company prevailed at District Court, but a decision in appeal is expected shortly.
Aside from marketed meds, the company’s pipeline features AMG-510, a KRAS inhibitor being explored in solid tumors. The drug is fully enrolled in a pivotal study in non-small cell lung cancer, where a win could set it up for blockbuster sales in a portion of lung cancer patients alone. Beyond that study, Amgen is also testing the medicine in KRAS p.G12C mutant advanced solid tumors regardless of their location in the body, and in patients with colorectal cancers.
Among Amgen’s marketed growth meds, migraine prevention drug Aimovig's sales reached $306 million last year, riding a first-in-class advantage and besting rival Emgality from Eli Lilly. Elsewhere in its portfolio, Amgen’s Parsabiv, Prolia, Repatha, Blincyto and Nplate each grew at double-digit percentages in 2019.
Despite the sales decline, Amgen CEO Robert Bradway scored a total pay increase of more than $1 million last year. The drugmaker cited the Otezla buy, pipeline advances and more in awarding the pay increase during the “year of transition.”