Amgen (AMGN Quick QuoteAMGN - Free Report) stock has declined 12.6% in the past three months. Investors are increasingly worried about a mix of near-term revenue pressure, patent expirations, obesity-drug competition and uncertainty around the company’s future growth drivers — even though the company’s first-quarter results have been relatively solid.

The recent pullback in AMGN’s shares may leave investors wondering whether to exit the stock, hold their positions, or use the dip as an opportunity to accumulate more shares.

Let’s understand Amgen’s strengths and weaknesses to better analyze how to play the stock in such a scenario.

Key Drugs & New Products Driving AMGN’s Top Line

Amgen markets a range of drugs across oncology, cardiovascular, bone health, immunology and other areas. Amgen’s revenues rose 6% to $8.62 billion in the first quarter of 2026, driven by growing patient demand for its innovative medicines.

Amgen’s key medicines like Repatha, Evenity, Uplizna and Blincyto and new drugs like Tavneos, Tezspire and Imdelltra are driving the top line.  New biosimilar launches are contributing to top-line growth as well. These drugs are offsetting declining revenues from oncology biosimilars and mature products such as Enbrel. Seventeen of Amgen’s products are now annualizing at more than $1 billion in sales, reducing dependence on any single product.

Amgen’s key growth drivers, which include Repatha, Evenity, Tezspire and oncology and rare disease drugs, as well as biosimilar products, generated $5.6 billion in sales in the first quarter, up 24% year over year. These key growth drivers, which represent almost 70% of Amgen’s total product sales, are expected to drive top-line growth in future quarters, making up for the impending loss of exclusivity (LOE) cliff.

AMGN’s Interesting Pipeline

Amgen has several key pipeline assets, with a primary focus on the obesity candidate, MariTide.

The company is developing MariTide, a GIPR/GLP-1 receptor, as a single dose in a convenient autoinjector device with a monthly and possibly less frequent dosing, which may help reduce treatment burden and improve persistence on treatment over time. This key feature differentiates it from Eli Lilly (LLY Quick QuoteLLY - Free Report) and Novo Nordisk’s (NVO Quick QuoteNVO - Free Report) popular GLP-1-based obesity drugs, Zepbound and Wegovy, respectively, which are weekly injections.

Amgen is evaluating MariTide in type II diabetes, obesity and obesity-related conditions as part of its comprehensive MARITIME phase III program. Amgen has nine global phase III studies underway with MariTide in obesity and other obesity-related conditions like obstructive sleep apnea, cardiovascular disease and heart failure. Three phase III studies of MariTide in type II diabetes will be initiated in 2026.

In clinical studies, MariTide has shown predictable and sustained weight loss and a meaningful impact on cardiometabolic parameters. However, some investors were not impressed with MariTide’s data from phase II obesity studies. Also, some investors believe that Amgen has entered the obesity market later than rivals like Lilly and Novo Nordisk and the market is becoming increasingly competitive.

Beyond MariTide, Amgen sees potential across several other programs in late-stage development, including olpasiran and dazodalibep.

Amgen is evaluating Kyprolis, Otezla, Nplate, Repatha, Lumakras, Tezspire and Blincyto for additional indications. Approval for the expanded use of these drugs can potentially drive further top-line growth. Uplizna was approved for myasthenia gravis in the United States in December 2025 and for IgG4-related disease in April 2025, while Tezspire was approved in the United States for chronic rhinosinusitis with nasal polyps in October 2025. The uptake of Uplizna and Tezspire for the new indications remains encouraging, as mentioned by Amgen on the first-quarter conference call.

Amgen has also invested several billion dollars in M&A deals over the last decade, including platform and technology-related deals as well as acquisitions of marketed products.

AMGN’s Strong New Biosimilars Portfolio

Amgen has successfully launched biosimilars of J&J’s Stelara (Wezlana), Alexion’s Soliris (Bekemv) and Regeneron’s Eylea (Pavblu) in the past couple of years.

In the first quarter of 2026, its biosimilar products generated sales of $835 million, up 14% year over year. Since the first launch in 2018, Amgen’s biosimilars have delivered more than $14 billion in sales, significantly contributing to top-line growth and generating meaningful cash flows.

Phase III studies are ongoing to evaluate biosimilar versions of Bristol-Myers’ Opdivo (ABP 206), Merck’s Keytruda (ABP 234) and Roche’s Ocrevus (ABP 692).

Amgen’s new biosimilar launches will play a key role in mitigating the impact of LOE over the next few years.

AMGN’s Key Drugs Prolia & Xgeva’s LOE & Other Headwinds

Patents for Amgen’s best-selling drugs, Prolia and Xgeva, expired in February 2025 in the United States and in some European countries in November 2025. While Prolia’s sales declined 34%, Xgeva declined 27% in the first quarter. The erosion in their sales was in line with expectations in the first quarter.  The company expects accelerated sales erosion over the remainder of 2026 as several biosimilars have been launched globally.

Amgen faces a significant patent-expiration overhang as key products such as Prolia, Xgeva, Enbrel and Otezla have either already lost exclusivity or are expected to do so within the next few years. Together, these medicines accounted for roughly 30% of Amgen’s 2025 product sales, leaving the company exposed to potential revenue pressure from generic and biosimilar competition as patents expire.

Pricing headwinds and competitive pressure are hurting sales of many products.  Amgen’s net selling price has declined for the past few years, with the trend expected to continue due to increased competition. Sales prices of some key drugs like Repatha, Aimovig and Otezla are declining due to higher rebates to support and expand access for commercial and Medicare Part D patients. Amgen expects continuous price declines across its portfolio of drugs in 2026.

The Medicare Part D redesign and provisions of the Inflation Reduction Act (IRA), as well as the 340B Program, are affecting and are likely to continue to adversely impact sales of some drugs. Enbrel and Otezla have been selected by the Centers for Medicare & Medicaid Services for Medicare Part D price setting beginning in 2026 and 2027, respectively, which can result in further declines in net selling prices of these drugs.

Some recent drug-related/pipeline setbacks have raised concerns. Tavneos is facing regulatory scrutiny after the FDA proposed withdrawing its approval, citing concerns about insufficient evidence of effectiveness and alleged inaccuracies in the original approval application. The drug has also been linked to serious liver safety risks, including rare fatal cases of vanishing bile duct syndrome (VBDS), prompting stronger warning label updates. However, Tavneos has not been withdrawn from the market. Amgen is contesting the FDA proposal and the drug remains commercially available in the United States while the regulatory review and hearing process continues.

Recently, Amgen announced that it will discontinue further development of AMG 193, a first-in-class small molecule methylthioadenosine (MTA)-cooperative protein arginine methyltransferase 5 (PRMT5) inhibitor. The candidate was being developed in early-stage studies in various cancer indications.

AMGN’s Price, Valuation & Estimates

Amgen’s shares have risen 21.4% over the past year compared with an increase of 26.6% for the industry.

AMGN Stock Underperforms Industry

Image Source: Zacks Investment Research

From a valuation standpoint, Amgen is reasonably priced. Going by the price/earnings ratio, the company’s shares currently trade at 14.91 forward earnings, which is lower than 17.44 for the industry. The stock is also trading above its five-year mean of 13.81.

AMGN Stock Valuation

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for earnings has risen from $22.18 to $22.22 per share for 2026 over the past 30 days. For 2027, the consensus mark for earnings has increased from $23.24 to $23.56 per share over the same time frame.

AMGN’s Estimate Movement

Image Source: Zacks Investment Research

Stay Invested in AMGN Stock

After analyzing the factors discussed above, we believe the company is well placed to maintain long-term revenue growth. Amgen expects 2026 to be a “springboard year” in which its rapidly growing key growth drivers will offset the financial impact of patent expirations and increased competition. Beyond that, its next generation of molecules is rapidly progressing through the R&D pipeline, setting the stage for sustained long-term growth.

Despite the recent price correction, Amgen’s consistently rising estimates, reasonable valuation, and strong prospects for a consistent increase in sales and profits provide sufficient reason for investors to retain this Zacks Rank #3 (Hold) stock for now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.