Amgen's Biosimilar Business Surges, Led by Strong Stelara Copycat Launch

Amgen's strategic focus on biosimilars is paying dividends, with the company reporting robust growth in this segment during its first-quarter earnings call. The biotech giant's portfolio of copycat biologics, particularly its newly launched Stelara biosimilar, is driving significant revenue increases and offsetting pressures on some of its branded products.

Stelara Biosimilar Makes Impressive Debut

Amgen's biosimilar version of Johnson & Johnson's autoimmune drug Stelara hit the ground running, recording $150 million in sales during its first quarter on the market. This strong performance contributed to a surge in Amgen's overall biosimilar revenue, which reached $735 million in Q1, representing approximately 9% of the company's total sales.

Commercial chief Murdo Gordon highlighted the 35% year-over-year growth in biosimilar sales, emphasizing the segment's increasing importance to Amgen's long-term growth strategy. CEO Robert Bradway echoed this sentiment, noting that the biosimilar business "continues to contribute meaningfully to our long-term growth."

Mixed Performance Across Amgen's Portfolio

While Amgen's biosimilar business is thriving, the company's overall performance remains uneven. Some products, such as its Avastin biosimilar, are performing exceptionally well, with sales reaching $179 million in the quarter. However, others, like the company's Humira biosimilar, are struggling to gain traction in a competitive market.

Amgen is continuing to expand its biosimilar portfolio, having recently launched a copycat version of Regeneron's eye drug Eylea. The company is also poised to introduce a biosimilar of AstraZeneca's rare disease treatment Soliris in the coming months, further diversifying its offerings in this space.

Future Prospects and Challenges

Amgen's commitment to biosimilars sets it apart from many of its large pharmaceutical peers. The company is not resting on its laurels, with Phase 3 trials underway for biosimilars of checkpoint inhibitors that have revolutionized cancer care. These include potential competitors to Bristol Myers Squibb's Opdivo and Merck & Co.'s Keytruda, both of which are set to lose patent protection in 2028.

However, Amgen faces challenges in its innovative drug pipeline, particularly with its obesity treatment MariTide, which has thus far fallen short of investor expectations. The company hopes to change sentiment with upcoming data presentations at the American Diabetes Association meeting in June, where multiple late-stage trial results will be shared.

Despite these mixed signals, Amgen reported overall sales of $7.9 billion in the first quarter, marking an 11% increase over the same period in 2024 and exceeding analyst estimates. The company's strategic bet on biosimilars appears to be paying off, providing a solid foundation for growth as it navigates the complexities of the evolving pharmaceutical landscape.