Amgen recently announced that it will halt the development of its experimental weight loss pill in order to focus on advancing its injectable drug and other products for obesity treatment. The decision was made based on the profile of the oral drug and the company’s confidence in its other potential offerings. The company is currently working on an injectable obesity treatment called MariTide, which is showing promising results in mid-stage trials. Amgen plans to release initial data later this year and is working towards planning late-stage trials for the treatment.
Investors showed enthusiasm for Amgen’s decision, with the company’s shares rising more than 10% in extended trading following the announcement regarding MariTide. Amgen also has other weight management drugs in development, including an oral drug called AMG-786. This is the second weight loss pill that the drugmaker has decided to discontinue, following Pfizer’s decision to scrap its twice-daily obesity pill, danuglipron, in December. Pfizer is now focusing on developing a once-daily version of the drug.
Amgen is hoping to differentiate itself in the competitive weight loss drug market by offering a unique approach in its experimental injection. The company’s treatment works by activating a gut hormone receptor called GLP-1 to regulate appetite, while also blocking a second hormone receptor called GIP. This approach sets Amgen apart from existing injectable weight loss drugs such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound. Clinical trial data suggests that Amgen’s treatment helps patients keep the weight off after discontinuation and can be administered less frequently than current weekly options.
In addition to the news about its weight loss drug development, Amgen also reported strong first-quarter financial results that exceeded Wall Street expectations. The company’s adjusted earnings per share were $3.96, higher than the expected $3.87, and revenue came in at $7.45 billion, slightly beating the anticipated $7.44 billion. The revenue growth was partly attributed to products from the recently acquired Horizon Therapeutics, including the thyroid eye disease treatment Tepezza.
Amgen posted a net loss of $113 million, or 21 cents per share, compared to a net income of $2.84 billion, or $5.28 per share, in the same period last year. Excluding certain items, the company’s earnings per share were $3.96. Product sales grew by 6% from the previous year, with ten products delivering double-digit volume growth during the first quarter. The company also slightly adjusted its full-year revenue and profit 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 are optimistic about Amgen’s position in the weight loss drug market, especially with its unique approach to obesity treatment. The decision to focus on injectable options like MariTide and other products in development reflects the company’s strategy to capitalize on the growing demand for weight management solutions. With strong financial results and promising development in its pipeline, Amgen is poised to make a significant impact in the competitive landscape of weight loss drugs.
