Amgen (AMGN, Financial) addressed concerns regarding its experimental weight loss drug, stating there is no connection to bone density changes. Recently, such worries led to a $12 billion market value drop for the company. Analysts at Cantor Fitzgerald had raised alarms after evaluating early data of the drug, MariTide, suggesting a decrease in bone density. This news led to a 7% decline in Amgen’s stock price.
Amgen responded affirmatively, indicating that first-phase study results showed no bone safety concerns and reaffirmed their faith in MariTide's potential. The company looked forward to mid-stage study data due later this year. Following this statement, Amgen's stock saw a 2% increase in pre-market trading.
Cantor analysts observed changes in bone density based on supplementary data reviewed alongside February results. However, four other analysts have suggested that these concerns might be exaggerated, especially with ongoing mid-stage studies and plans for a larger scale late-stage trial.
Christopher Raymond, an analyst at Piper Sandler, noted while any new safety signals warrant caution, Amgen possesses a deeper understanding of MariTide compared to Wall Street's initial reactions.
MariTide is designed to activate the GLP-1 hormone linked to satiety, similar to popular weight loss drugs like Novo Nordisk's Wegovy and Eli Lilly's Zepbound. A distinct aspect of MariTide is its ability to block the GIP hormone, associated with fat storage and metabolism regulation. Amgen expects this unique approach could offer faster weight loss and less frequent dosing compared to Wegovy and Zepbound.
