Amgen recently announced that it will be discontinuing the development of its experimental weight loss pill and focusing on its injectable drug and other products in development for obesity. The company is working on an injectable obesity treatment called MariTide, which is currently in a mid-stage trial. Initial data from the study is expected to be released later this year, and Amgen is planning a late-stage trial for the treatment. The company is also planning a stage two trial for MariTide in diabetes treatment. Shares of Amgen rose more than 10% following the news about MariTide.
The decision to discontinue the oral weight loss pill comes after Pfizer also scrapped a version of its obesity pill due to patient tolerability issues. Amgen is hoping to make its mark in the weight loss drug market with a different approach than its competitors. Their injectable treatment activates a gut hormone receptor, GLP-1, to regulate appetite. Unlike other drugs in the market, Amgen’s treatment blocks the GIP receptor, targeting a different mechanism for weight loss. Clinical trial data shows that patients using Amgen’s MariTide lost an average of 14.5% of their body weight in just 12 weeks.
Amgen’s first quarter results exceeded Wall Street expectations, driven partly by products from the recently acquired Horizon Therapeutics. The company reported revenue of $7.45 billion, up 22% from the same period last year. The net loss for the quarter was $113 million, or 21 cents per share, compared to a net income of $2.84 billion, or $5.28 per share, in the previous year. Excluding certain items, Amgen reported earnings per share of $3.96.
In addition to the success of MariTide, Amgen’s product sales grew by 6% from the previous year. Ten products, including cardiovascular drug Repatha and severe asthma treatment Tezspire, delivered double-digit volume growth during the first quarter. The company slightly adjusted its full-year guidance, expecting revenue of $32.5 billion to $33.8 billion and a full-year adjusted profit of $19 to $20.20 per share. Analysts predict full-year revenue of $32.95 billion and adjusted profit of $19.48 per share for Amgen.
Investors are closely watching Amgen’s pipeline of experimental weight loss treatments, particularly the progress of MariTide. The company’s decision to discontinue the oral weight loss pill and focus on injectable treatments highlights the competitive landscape of the weight loss drug market, which is expected to reach significant value by the end of the decade. Amgen’s unique approach with MariTide, targeting different hormone receptors than existing drugs, aims to differentiate the company in this crowded market. The potential benefits and convenience of their injectable treatment could offer a promising solution for patients seeking effective and manageable weight loss options.
