Amgen Shares Rise on MariTide Update

Investing.com – Shares in Amgen (NASDAQ:AMGN) rose in premarket US trading on Wednesday after the drugmaker stated there was no connection between the administration of its MariTide experimental weight-loss treatment and changes in bone mineral density.

Previously, the stock had dropped over 7% following a report by analysts at Cantor Fitzgerald which indicated that their review of MariTide data suggested an influence on bone mineral density. The findings were first published in the journal Nature in February.

"The Phase 1 study results do not suggest any bone safety concern or change our conviction in the promise of MariTide," Amgen said in a statement. "We look forward to sharing the Phase 2 topline data later this year."

In October, Amgen indicated that mid-stage trial results for the potentially lucrative obesity treatment would be available in late 2024. Investors are now focused on this readout, which could indicate Amgen's competitiveness in the weight-loss drug market.

Securing a share of the obesity market, potentially worth hundreds of billions of dollars annually, could greatly enhance Amgen's sales. Amgen Chief Scientific Officer Jay Bradner noted that MariTide might be the first therapy in this market to require monthly or less frequent dosing.

CEO Bob Bradway mentioned that Amgen is "well advanced" in preparations for launching Phase 3 testing of MariTide to compile sufficient data for regulatory approval. The company has also begun to explore a different weight-loss drug candidate, although few details are available, according to Reuters.

Amgen reported a profit of $5.58 per share in Q3, a 13% increase from the previous year, exceeding analysts' projections, based on LSEG data cited by Reuters. Revenue for the period was around $8.5 billion, aligning with expectations.

For the fiscal year, Amgen projected earnings of between $19.20 and $20.00 per share, a slight adjustment from its previous estimate of $19.10 to $20.10. The midpoint of its revenue outlook has also been raised.

Analysts suggest that, given the modest returns and updated guidance, investor sentiment around Amgen may heavily depend on the results of the Phase 2 trial of MariTide.

(Reuters contributed reporting.)