Amgen Inc (NASDAQ: AMGN) says patients on its weight-loss injection in a mid-stage trial weighed up to 20% less on average after a year.
The biopharmaceutical giant is convinced its treatment will help lower body weight even further upon continued consumption (beyond 52 weeks) as it did not observe a plateau in the Phase II study.
The company’s chief scientific officer touted MariTime’s “differentiated profile and strong reduction of HbA1C” in a press release today.
Amgen stock is still down about 7.0% in premarket on Tuesday.
Why is Amgen stock down today?
Amgen shares are in the red primarily because its mid-stage trial fell a bit short of expectations.
Analysts had forecast MariTide to help lower weight by 20% “at least”. Some had even called for up to 25% reduction in body weight in 52-weeks.
Nonetheless, the multinational said it will use today’s data to design a late-stage trial of MariTide that is “already deep into planning.”
Amgen is fully committed to strengthening its footprint in weight loss drugs that experts believe could be generating about $150 billion in sales (globally) per year by the end of this decade.
Amgen stock is currently down about 20% versus its year-to-date high on September 20th.
How does Amgen compare to Eli Lilly
Amgen’s weight-loss injection puts it in direct competition with the likes of Eli Lilly and Novo Nordisk that have so far been the most in focus for obesity treatments.
Some even expect LLY to become the world’s first non-tech $1.0 trillion company as Zepbound continues to boost its sales next year.
That drug helped patients shed over 22% of their body weight in 72 weeks in a late-stage trial.
Novo Nordisk’s Wegovy, in comparison, delivered a 15% decline in weight over 68 weeks.
But Amgen expects its MariTide to enable patients lose weight much faster and in fewer shots versus competing treatments.
Amgen shares pay a dividend yield of 3.06% at writing, which makes them all the more attractive for income investors.
Should you buy Amgen stock on the weakness?
The sell-off in Amgen stock today may be worth buying considering Cantor Fitzgerald analyst Olivia Brayer sees upside in it to $405.
Her price target indicates potential for close to a 50% upside from here.
Additionally, Amgen Inc improved its per-share earnings from $3.23 last year to a much better-than-expected $5.27 in its latest reported quarter as revenue climbed 23% year-on-year to $8.5 billion.
The Nasdaq listed firm improved its profit margin in the third quarter by a whopping 800 basis points to 33% as well. Robert A.
Bradway – the company’s chief executive officer told investors at the time:
We continue to invest heavily in our rapidly advancing pipeline, with a focus on delivering innovative therapies across our core therapeutic areas.
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