The Partners Who Pay AmgenNarrow moat

Amgen (AMGN) — moat facet

Other drug companies pay Amgen $1.6 billion a year in royalties and partner revenue, its most profitable and least controllable income.

Not all of Amgen's revenue comes from selling drugs. Other revenues, royalty income and corporate partner revenue, were $1,603 million in 2025, against $1,398 million in 2024 and $1,280 million in 20231. In the second quarter of 2026 they were $517 million, and the 10-Q says they increased 27% driven by higher corporate partner revenue and royalty income2.

Other revenues ($M)1,15820191,68220211,28020231,39820241,6032025Amgen FY2020 and FY2022 results releases; Form 10-K FY2025
Recovering toward the 2021 level.

The customers here are other drug companies. AstraZeneca, which shares TEZSPIRE, pays Amgen a mid-single-digit royalty before the two split profits equally3. BeOne shares profits on the drugs it sells in China4. Other licensees pay royalties on technology Amgen developed.

The line has been larger. Other revenues were $1,682 million in 20215, fell to $1,280 million in 20236, and are now recovering. They are about 4.4% of total revenues7.

This is the most profitable revenue Amgen has, because a royalty carries no cost of goods. It is also the least controllable: it depends on partners' sales and on licence terms that expire.

The first half confirmed the trend: other revenues were $917 million against $684 million a year earlier8, and the 10-Q attributes the 34% increase to higher corporate partner revenue and royalty income9.

Growth is the thing to follow. At 27% in the second quarter of 202610 and 34% in the first half11, other revenues are growing faster than product sales; if the line returns to decline, as it did from 2021 to 2023, the partners' products will have peaked and Amgen's easiest revenue will shrink.

Moat trajectory: Widening

Other revenues up 27% in Q2 2026.

The number that tests this moat
Reported
Other revenues, latest quarter
$517M, +27% (Q2 2026)

Royalty and partner income; a return to decline would mean the partners' products have peaked.

Source: Amgen Form 10-Q, Q2 2026 ↗
References
  1. ReportedOther revenues, royalty income and corporate partner revenue, were $1,603 million in 2025, against $1,398 million in 2024 and $1,280 million in 2023.
    Amgen Form 10-K for fiscal 2025 - Item 7 MD&A: product sales, sales deductions and customer concentration. — FY2025 · publ. 13 February 2026 · source ↗
  2. ReportedIn the second quarter of 2026 they were $517 million, and the 10-Q says they increased 27% driven by higher corporate partner revenue and royalty income.
    Amgen Form 10-Q for the quarter ended 30 June 2026 - product sales, the TAVNEOS proceeding, the IRS dispute, the BeOne stake and the balance sheet. — Q2 2026 · publ. 5 August 2026 · source ↗
  3. ReportedAstraZeneca, which shares TEZSPIRE, pays Amgen a mid-single-digit royalty before the two split profits equally.
    Amgen Form 10-K for fiscal 2025 - Item 1 business: products, collaborations, staff and pipeline. — FY2025 · publ. 13 February 2026 · source ↗
  4. ReportedBeOne shares profits on the drugs it sells in China.
    Amgen Form 10-K for fiscal 2025 - Item 1 business: products, collaborations, staff and pipeline. — FY2025 · publ. 13 February 2026 · source ↗
  5. ReportedOther revenues were $1,682 million in 2021, fell to $1,280 million in 2023, and are now recovering.
    Amgen fourth-quarter and full-year 2022 results release, Form 8-K exhibit 99.1 - product sales and other revenues for 2021-2022. — FY2022 · publ. February 2023 · source ↗
  6. ReportedOther revenues were $1,682 million in 2021, fell to $1,280 million in 2023, and are now recovering.
    Amgen Form 10-K for fiscal 2025 - Item 7 MD&A: product sales, sales deductions and customer concentration. — FY2025 · publ. 13 February 2026 · source ↗
  7. Moat Explorer calcThey are about 4.4% of total revenues.
    Moat Explorer calculation from Amgen's reported product sales and financial statements ($ millions unless stated). Sales deductions: 2019 rebates 6,825 + chargebacks 7,090 + other 1,292 = 15,207; 2025 21,697 + 16,988 + 3,298 = 41,983; 41,983 / 35,148 = 1.19 times net product sales; implied gross product sales 35,148 + 41,983 = 77,131. Growth 2019-2025: deductions 41,983 / 15,207 = 2.76 times; net product sales 35,148 / 22,204 = 1.58 times (up 58%); rebates 21,697 / 6,825 = 3.18 times; chargebacks 16,988 / 7,090 = 2.4 times. Wholesalers 2025 gross: 26,253 + 20,986 + 12,562 = 59,801; 59,801 / 36,751 = 1.63 times total revenues; McKesson 26,253 / 36,751 = 71%. ENBREL: 2,226 / 5,433 - 1 = -59%; share of product sales 5,226 / 22,204 = 23.5% (2019), 2,226 / 35,148 = 6.3% (2025). ENBREL + Otezla 2025: 2,226 + 2,265 = 4,491; 4,491 / 36,751 = 12%. Otezla sales 2020-2025: 2,195 + 2,249 + 2,288 + 2,188 + 2,126 + 2,265 = 13,311; impairment 1,200 / 13,400 = 9%. Horizon products: 2023 448 + 272 + 65 + 164 = 949; 2024 1,851 + 1,185 + 379 + 758 = 4,173; 2025 1,903 + 1,340 + 655 + 719 = 4,617, 4,617 / 27,800 = 16.6%; Q2 2026 576 + 400 + 335 + 149 = 1,460, x4 = 5,840. TEPEZZA + KRYSTEXXA 2025 1,903 + 1,340 = 3,243; KRYSTEXXA 1,340 / 1,185 - 1 = 13.1%; TEPEZZA 1,903 / 1,851 - 1 = 2.8%; UPLIZNA 655 / 379 - 1 = 72.8%; H1 2026 262 + 335 = 597; ultra-rare 719 / 758 - 1 = -5.1%; UPLIZNA + ultra-rare 655 + 719 = 1,374. TAVNEOS H1 2026 119 + 150 = 269. Acquisitions: 13.4 + 3.9 + 27.8 = 45.1 bn; acquired products 2025 2,265 + 459 + 4,617 = 7,341, 7,341 / 36,751 = 20%. Interest 2,755 / 9,080 = 30%. Net debt 30 June 2026: 57.3 - 13.989 = 43.3 bn. Goodwill + intangibles 18,680 + 22,276 = 40,956, 40,956 / 90,586 = 45%. EPS gap 21.84 - 14.23 = 7.61. R&D 7,272 / 4,784 - 1 = 52%; 7,272 / 36,751 = 19.8%. Growth drivers 2025: Repatha 3,016 + EVENITY 2,100 + TEZSPIRE 1,478 + BLINCYTO 1,559 = 8,153 (2024: 2,222 + 1,563 + 972 + 1,216 = 5,973; 2023: 1,635 + 1,160 + 567 + 861 = 4,223; 2021: 1,117 + 530 + 0 + 472 = 2,119; 2019: 661 + 189 + 0 + 312 = 1,162); 8,153 / 5,973 - 1 = 36.5%, about 37%; 8,153 / 36,751 = 22%. Repatha 3,016 / 661 = 4.6 times, 3,016 / 2,222 - 1 = 36%; EVENITY 2,100 / 189 = 11 times; BLINCYTO 1,559 / 312 = 5.0 times. KYPROLIS 1,412 / 1,503 - 1 = -6%; KYPROLIS + Nplate 1,412 + 1,524 = 2,936, 2,936 / 6,660 = 44%; BLINCYTO + IMDELLTRA 1,559 + 627 = 2,186; Q2 2026 472 + 288 = 760. IMDELLTRA run rate 288 x 4 = 1,152, 1,152 / 6,498 = 18%. Biosimilars: 2025 AMJEVITA 597 + PAVBLU 700 + WEZLANA 273 + MVASI 771 + in other products 683 = 3,024; 3,024 / 35,148 = 8.6% of product sales; 3,024 / 36,751 = 8.2% of total revenues; PAVBLU 700 / 3,024 = 23%; AMJEVITA 597 / 761 - 1 = -22%; band 2022 1,831 / 2,177 - 1 = -16%; in other products 683 / 667 - 1 = 2%; WEZLANA and other biosimilars added (273 - 27) + (683 - 667) = 262; Q2 2026 155 + 287 + 61 + 153 + 199 = 855; Q2 2025 133 + 130 + 35 + 191 + 172 = 661; 855 / 661 - 1 = 29%; shares of total revenues 568 / 23,362 = 2.4% (2019), 2,177 / 25,979 = 8.4% (2021), 1,916 / 28,190 = 6.8% (2023). Bands 2025: general medicine and bone 3,016 + 2,100 + 4,414 + 2,084 = 11,614 (31.6%); inflammation and rare disease 2,226 + 2,265 + 1,478 + 1,903 + 1,340 + 655 + 459 + 719 = 11,045 (30.1%); oncology 1,559 + 627 + 1,175 + 1,412 + 363 + 1,524 = 6,660 (18.1%); biosimilars 3,024 (8.2%); established and other 1,389 + 435 + 353 + (1,311 - 683 = 628) + 1,603 = 4,408 (12.0%); total 36,751. 2019 bands 5,457; 5,404; 2,895; 568; 9,038; total 23,362. General medicine 11,614 / 5,457 = 2.1 times, 11,614 / 10,384 - 1 = 11.8%; inflammation 2020 7,191, 2024 10,870 / 7,535 - 1 = 44%, 2025 11,045 / 10,870 - 1 = 1.6%, non-ENBREL-Otezla 11,045 - 4,491 = 6,554; oncology 6,660 / 2,895 = 2.3 times, 6,660 / 5,685 - 1 = 17.2%; established 4,408 / 9,038 = 0.49. Q2 bands 2026 vs 2025: general medicine 953 + 714 + 759 + 352 = 2,778 vs 696 + 518 + 1,122 + 532 = 2,868, down 3%; Repatha + EVENITY 1,667 vs 1,214; denosumab 1,111 vs 1,654, down 33%; inflammation 3,167 vs 604 + 618 + 342 + 505 + 349 + 176 + 110 + 183 = 2,887, up 9.7%; oncology 1,953 vs 384 + 134 + 305 + 378 + 90 + 369 = 1,660, up 17.7%; established and other 632 + (351 - 199) + 517 = 1,301 vs 359 + 82 + 92 + (334 - 172) + 408 = 1,103, up 18%. Denosumab 2025 4,414 + 2,084 = 6,498, 6,498 / 36,751 = 17.7%; Q1 2026 727 + 411 = 1,138; H1 2026 1,486 + 763 = 2,249 vs 2,221 + 1,098 = 3,319. Neulasta 435 / 4,534 - 1 = -90%. Geography: US 25,656 / 35,148 = 73%; rest of world 9,492 / 35,148 = 27.0%; Q2 2026 2,547 / 9,537 = 26.7%; AMJEVITA 129 / 155 = 83.2%; Aranesp 258 / 352 = 73.3%; ENBREL 6 / 580 = 1.0%. Novartis-facing 2025 3,016 + 2,265 + 2,226 + 1,524 + 1,478 = 10,509, 10,509 / 36,751 = 29%. Other revenues 1,603 / 36,751 = 4.4%. Receivables 9,570 / 6,782 - 1 = 41%. Guidance midpoints: (37.0 + 38.4) / 2 = 37.7; (37.1 + 38.5) / 2 = 37.8; (38.2 + 39.4) / 2 = 38.8; non-GAAP EPS (22.30 + 23.50) / 2 = 22.90. IRS: 3.6 + 5.1 + 2.0 = 10.7 bn before interest; offsets 0.9 + 2.2 = 3.1 bn; 10.7 / 7.711 = 1.4 times 2025 net income; 10.7 / 224.15 = 4.8% of market value. Trailing free cash flow 8,100 - 2,891 + 4,966 = 10,175; 10,175 / 224,150 = 4.5%. Shares 538.8 / 629.6 - 1 = -14%. Gross margin (total revenues - cost of sales) / total revenues: (28,190 - 8,451) / 28,190 = 70.0% (2023); (33,424 - 12,858) / 33,424 = 61.5% (2024); (36,751 - 12,037) / 36,751 = 67.2% (2025). Pre-tax income 2025 7,711 + 1,265 = 8,976. Total revenues 36,751 / 21,662 = 1.70 times 2015. Market value 224.15 / 176.25 - 1 = 27% in 2026; added 224.15 - 176.25 = 47.9 bn against 176.25 - 122.45 = 53.8 bn in 2015-2025. Trailing net income 7,711 - 3,162 + 4,194 = 8,743; trailing revenue 36,751 - 17,328 + 18,672 = 38,095 - revenue mix, concentration and geography. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Amgen's Forms 10-K, 10-Q, results releases and market data; operands shown in the source line.
  8. ReportedThe first half confirmed the trend: other revenues were $917 million against $684 million a year earlier, and the 10-Q attributes the 34% increase to higher corporate partner revenue and royalty income.
    Amgen second-quarter 2026 results release, Form 8-K exhibit 99.1 - product sales performance: inflammation, rare disease and established products, and sales by region. — Q2 2026 · publ. 4 August 2026 · source ↗
  9. ReportedThe first half confirmed the trend: other revenues were $917 million against $684 million a year earlier, and the 10-Q attributes the 34% increase to higher corporate partner revenue and royalty income.
    Amgen Form 10-Q for the quarter ended 30 June 2026 - product sales, the TAVNEOS proceeding, the IRS dispute, the BeOne stake and the balance sheet. — Q2 2026 · publ. 5 August 2026 · source ↗
  10. ReportedAt 27% in the second quarter of 2026 and 34% in the first half, other revenues are growing faster than product sales; if the line returns to decline, as it did from 2021 to 2023, the partners' products will have peaked and Amgen's easiest revenue will shrink.
    Amgen Form 10-Q for the quarter ended 30 June 2026 - product sales, the TAVNEOS proceeding, the IRS dispute, the BeOne stake and the balance sheet. — Q2 2026 · publ. 5 August 2026 · source ↗
  11. ReportedAt 27% in the second quarter of 2026 and 34% in the first half, other revenues are growing faster than product sales; if the line returns to decline, as it did from 2021 to 2023, the partners' products will have peaked and Amgen's easiest revenue will shrink.
    Amgen Form 10-Q for the quarter ended 30 June 2026 - product sales, the TAVNEOS proceeding, the IRS dispute, the BeOne stake and the balance sheet. — Q2 2026 · publ. 5 August 2026 · source ↗
Sources
Generated September 28, 2026