Amgen, a key player in the pharmaceutical industry, recently decided to discontinue the development of its experimental weight-loss pill AMG-786 and instead focus on its injectable weight-loss drug, MariTide, along with other products in its pipeline.
Market Opportunity and Competition The weight-loss drug market, led by giants Novo Nordisk and Eli Lilly, is estimated by analysts to potentially reach $100 billion by the end of the decade. Although the oral pill option would have been convenient for many patients, Amgen is instead focusing on MariTide and other injectable weight management treatments. According to Jay Bradner, Amgen’s chief scientific officer, the decision was based on the promising profile of MariTide and other assets in their obesity pipeline.
About MariTide MariTide is currently undergoing mid-stage clinical trials in overweight or obese adults without diabetes, and the initial data is promising. The company plans to work closely with regulatory bodies to design a late-stage trial for this injectable treatment and has hinted at a second trial focused on diabetes treatment. Investor confidence was reflected in Amgen’s shares, which rose over 10% following the announcement.
Competition and Market Differentiation Amgen’s approach to weight loss treatments diverges from its competitors, focusing on different hormone receptors. MariTide activates the gut hormone GLP-1 receptor while blocking the GIP receptor, whereas other competitors such as Eli Lilly’s Zepbound and Novo Nordisk’s Wegovy take different approaches. Additionally, MariTide shows promise in helping patients maintain weight loss even after stopping the medication and offers the convenience of monthly injections.
Clinical Trial Data and Potential According to early clinical trial data, patients who received the highest monthly dose of 420 mg experienced a 14.5% weight reduction in just 12 weeks, as noted in a publication in Nature Metabolism.
Financial Results and Market Outlook Amgen’s first-quarter results showed:
- Earnings per share (EPS) of $3.96, exceeding analysts’ expectations of $3.87.
- Revenue of $7.45 billion, slightly above the expected $7.44 billion.
Excluding certain items, Amgen reported earnings of $3.96 per share. The company experienced a net loss of $113 million, partly due to costs associated with its acquisition of Horizon Therapeutics. However, product sales from Horizon Therapeutics, including the drug Tepezza, contributed significantly to Amgen’s revenue.
Amgen also slightly adjusted its full-year guidance, projecting revenues between $32.5 billion and $33.8 billion and adjusted EPS of $19 to $20.20.