Amgen announced on December 19, 2025 that it will join nine other major pharmaceutical firms in a drug‑price cut agreement with the Trump administration, a deal that will apply a most‑favored‑nation (MFN) pricing policy to the company’s key products.
Under the MFN framework, Amgen will offer its migraine and cardiovascular drugs—Aimovig, Amjevita and Repatha—at discounted monthly prices for uninsured patients and Medicaid beneficiaries. The company has committed to pricing Aimovig and Amjevita at $299 per month, representing 60‑80% off U.S. list prices, and Repatha at $239 per month, roughly 60% off list. The agreement also grants Amgen a three‑year exemption from the administration’s planned pharmaceutical tariffs, provided the company continues to invest in U.S. manufacturing. The TrumpRx.gov portal, which will direct consumers to manufacturers’ direct‑to‑consumer sites, is scheduled to launch in January 2026, not at the time of the announcement.
Amgen’s financial backdrop underscores the significance of the pricing commitment. In Q3 2025 the company generated $9.6 billion in revenue, up 12% year‑over‑year, and posted a non‑GAAP EPS of $5.64, beating consensus expectations. The prior quarter, Q4 2024, saw $9.1 billion in revenue, an 11% increase, and a non‑GAAP EPS of $5.31. Full‑year 2024 revenue rose 19% to $33.4 billion, with a non‑GAAP operating margin of 46.9% versus 49.8% in 2023. For 2025, Amgen has guided revenue of $34.3 billion to $35.7 billion and non‑GAAP EPS of $20.00 to $21.20.
The price cuts will reduce Amgen’s revenue per unit for the affected drugs, but the company expects volume growth to offset the lower margins. The slight decline in operating margin reflects higher operating expenses from the Horizon Therapeutics acquisition and ongoing R&D investment, while the company’s focus on high‑margin specialty products and strategic manufacturing expansion supports its long‑term profitability. Management notes that the MFN agreement is part of a broader effort to expand access while maintaining a disciplined cost structure.
CEO Robert A. Bradway emphasized that the U.S. remains a leader in biopharmaceutical innovation and that Amgen is committed to engaging with the government to ensure that innovation is appropriately supported. He highlighted the company’s focus on expanding access, advancing innovation, and sustaining long‑term growth, while acknowledging the pricing pressures that accompany the new agreement.
The agreement signals continued regulatory pressure on drug pricing, but Amgen’s robust financial performance and forward guidance suggest that the company is positioned to navigate the margin compression and continue delivering growth through volume expansion and strategic investments.
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