The Amgen logo was displayed outside Amgen’s headquarters in Thousand Oaks, California on May 17, 2023.
Mario Tama | Getty Images
Amgen on Thursday said it would stop developing an experimental weight-loss pill and instead pursue an injectable drug and other products in development for obesity.
Amgen is one of several drugmakers looking to join the red-hot weight-loss drug space dominated by Up-to-date Nordisk AND Eli Lilly, which some analysts estimate could be worth $100 billion by the end of the decade. But the company has other options for gaining a piece of the market.
“Given the profile we saw [the oral drug], we will not pursue further development. Instead, in obesity, we are investing in MariTide and a number of preclinical assets,” Jay Bradner, Amgen’s chief scientific officer, said on Thursday’s earnings call.
Amgen is developing an injectable anti-obesity drug called MariTide, which is in an interim study in adults who are obese or overweight and without diabetes. The company will release preliminary data from that study later this year, and Bradner said Amgen is “very pleased” with the results so far.
The company said it was working with regulators to plan late-stage trials for the drug. Amgen announced on Thursday that it plans a second stage of research on the drug also for the treatment of diabetes.
Amgen shares rose more than 10% in extended trading Thursday following the comments on MariTide.
Amgen also develops other drugs to lend a hand with weight management.
The drugmaker’s oral drug, called AMG-786, is the second weight loss pill to be withdrawn from the market in the last year.
In December, Pfizer withdrew a twice-daily version of its weight-loss pill, danuliprone, after patients had difficulty tolerating the drug midway through a trial. The company is currently working on a once-daily version of this drug.
Investors are focusing on Amgen’s laser offering of experimental weight loss treatments. Amgen hopes to stand out from a crowded field of potential players with its different approach.
The company’s experimental shot helps people lose weight in a different way than existing injectable drugs. Like Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound, one part of Amgen activates a gut hormone receptor called GLP-1, which helps regulate appetite.
But although Zepbound activates a second hormone receptor called GIP, Amgen’s drug blocks it. Wegovy does not target GIP, which suppresses appetite like GLP-1, but may also improve the way the body breaks down sugar and fat.
Based on some clinical trial data, Amgen’s injectable drug appears to lend a hand patients maintain weight after they stop using it. The drugmaker is also testing the possibility of taking the drug once a month or even less frequently, which could provide more convenience than weekly medications available on the market.
According to data, patients given the highest monthly dose of Amgen’s MariTide – 420 milligrams – lost an average of 14.5% of their body weight in just 12 weeks. data from the phase one trial published in February in the journal Nature Metabolism.
Amgen’s first quarter results
Also on Thursday, Amgen reported first-quarter revenue and adjusted earnings that topped Wall Street expectations, thanks in part to products from recently acquired Horizon Therapeutics.
Here’s Amgen’s first-quarter report compared to Wall Street expectations, based on a survey of analysts conducted by LSEG:
- Earnings per share: $3.96 vs. expected $3.87
- Income: $7.45 billion against the expected $7.44 billion
Amgen reported a net loss of $113 million, or 21 cents per share. That compares with net income of $2.84 billion, or $5.28 per share, for the year-earlier period.
After excluding certain items, the company reported earnings per share of $3.96.
Amgen reported revenue of $7.45 billion in the first quarter, up 22% from the same period a year ago.
This includes $914 million from Horizon Therapeutics products, including Tepezza for thyroid and eye diseases.
Excluding medicines from Horizon Therapeutics, Amgen said sales of its products increased 6% compared to the same period last year. Ten products saw double-digit volume growth in the first quarter, including cardiovascular drug Repatha, severe asthma drug Tezspire and Blincyto, a drug for a certain blood cancer.
On Thursday, Amgen also slightly narrowed its full-year forecast from below.
The company expects 2024 revenue of $32.5 billion to $33.8 billion. That compares with previous estimates of $32.4 billion to $33.8 billion.
Amgen expects full-year adjusted earnings of $19 to $20.20 per share. This compares to previous estimates of $18.90-$20.30 per share.
Analysts surveyed by LSEG expect full-year revenue of $32.95 billion and adjusted earnings of $19.48 per share.
