AMGN · 10-Q · 2026Q2 · Full report

Reimbursement and Payer Mix

AMGEN INC · 2026-08-05 · Importance 65 · Surprise 60 · In source text

The Inflation Reduction Act selected Otezla for Medicare price setting beginning January 1, 2027. The earlier-than-anticipated selection reduced estimated future U.S. cash flows for Otezla and triggered an impairment evaluation in the first quarter of 2025. A discounted-cash-flow analysis valued the related developed-product-technology rights at $4.0 billion versus a $4.8 billion carrying value, resulting in a partial impairment charge. The pricing decision creates continuing reimbursement and asset-recovery risk for Amgen’s human therapeutics business.

Key facts

Impact estimates

metricdirectionstageexpectedbasis
revenuenegativeprobableIn January 2025 Otezla was selected by CMS for Medicare price setting applicable beginning January 1, 2027