Amgen (NASDAQ: AMGN) saw its shares rise in premarket U.S. trading on Wednesday after the company clarified that its experimental obesity drug, MariTide, was not linked to any changes in bone mineral density.
The stock had fallen more than 7% in the previous session, following a report from Cantor Fitzgerald analysts who suggested that their analysis of MariTide data indicated a potential decline in bone mineral density. These findings were initially published in *Nature* in February.
However, Amgen stated that the Phase 1 study results did not raise any bone safety concerns, reinforcing the company’s confidence in MariTide’s potential. “We are encouraged by the data and look forward to sharing the Phase 2 topline results later this year,” the company said.
In October, Amgen had announced that mid-stage trial data for MariTide, a promising obesity treatment, would be released in late 2024. Investors are now focused on the upcoming results, which could play a key role in determining Amgen’s competitive standing in the growing weight-loss drug market.
Capturing a share of the obesity market, which analysts predict could reach hundreds of billions of dollars annually, would significantly boost Amgen’s sales. Amgen’s Chief Scientific Officer, Jay Bradner, noted that MariTide could potentially be the first weight-loss treatment in this space to require monthly or even less frequent dosing.
Amgen CEO Bob Bradway stated that the company is “well advanced” in preparing for Phase 3 trials of MariTide, aiming to gather sufficient data for regulatory approval. Additionally, Amgen has begun exploring another weight-loss drug candidate, although details about this new treatment remain limited, according to a report from Reuters.
Amgen reported a third-quarter profit of $5.58 per share, marking a 13% increase from the previous year and exceeding analysts’ expectations, according to LSEG data cited by Reuters.
Revenue for the quarter reached $8.5 billion, roughly in line with forecasts.
For the full fiscal year, Amgen now projects earnings between $19.20 and $20.00 per share, slightly narrowing its previous guidance range of $19.10 to $20.10. The company also raised the midpoint of its revenue outlook.
Analysts have noted that, given the modest returns and the slight revision in guidance, investor sentiment toward Amgen will likely hinge on the results of the Phase 2 trial for MariTide.
