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Amgen says biosimilar competition and IRA pricing are reshaping drug spend
Amgen reported Q2 2026 total revenues of $10.1 billion, up 10% year over year, while sales for its key oncology brands Prolia and XGEVA fell due to lower volume and net selling prices as multiple biosimilars launched.
Amgen reported that its second-quarter 2026 results reflect a pharmaceutical market in transition, with biosimilar competition and government drug price-setting beginning to affect revenue patterns in real time, according to Insurance Business. The Thousand Oaks, California-based biotech said total revenues rose to $10.1 billion in Q2 2026, up 10% year over year, driven by 9% growth in product sales.
The company pointed to biosimilar entries as a measurable source of declines for specific products. Insurance Business reported that Prolia sales fell 32% year over year and XGEVA dropped 34%, attributed to both lower volume and lower net selling prices as multiple biosimilars launched globally.
Amgen also said the Inflation Reduction Act Medicare Part D price-setting mechanism is now operational for the first time, with the impact tied to the Medicare Drug Price Negotiation Program. Insurance Business noted that the program set Maximum Fair Prices for ten high-expenditure Part D drugs in 2026, and it linked the decline in Enbrel’s net selling price to the IRA mechanism and a higher 340B Program mix.
Beyond Amgen, Insurance Business tied the shift to employer coverage dynamics, citing claims data and benefits-industry research. Specialty medications accounted for 87.6% of total prescription spend in 2025 despite representing 14% of prescriptions, and the Amwins Benefits State of the Market report estimated some employers added 2% or more to healthcare budgets for GLP-1 medications, a potential pressure point for formulary negotiations.