Amgen, a leading biopharmaceutical company, has announced that it will discontinue the development of its experimental weight loss pill and instead focus on its injectable drug and other products in development for obesity. This decision comes as Amgen looks to make its mark in the rapidly growing weight loss drug market, which is currently dominated by Novo Nordisk and Eli Lilly. Analysts predict that this market could be worth $100 billion by the end of the decade.
During an earnings call, Amgen’s chief scientific officer, Jay Bradner, stated that the company will not pursue further development of the oral weight loss drug due to its profile. Instead, Amgen is investing in MariTide, an injectable obesity treatment that is currently undergoing a midstage trial. Initial data from the trial will be released later this year, and Bradner expressed satisfaction with the results so far. Amgen is also planning a late-stage trial for MariTide in diabetes treatment.
Amgen’s decision to focus on injectable treatments for obesity aligns with its efforts to differentiate itself from other players in the market. The company’s experimental injection works differently from existing injectable drugs like Wegovy and Zepbound. While these drugs activate gut hormone receptors to regulate appetite, Amgen’s treatment blocks a hormone receptor called GIP. Additionally, Amgen’s injectable treatment has shown promise in helping patients maintain weight loss even after they stop taking the drug. The company is also exploring the possibility of less frequent dosing, offering greater convenience for patients.
Clinical trial data published in the journal Nature Metabolism revealed that patients who received the highest dose of MariTide lost an average of 14.5% of their body weight in just 12 weeks. This promising data has contributed to a surge in Amgen’s stock price, which rose more than 10% in after-hours trading following the announcement.
Aside from MariTide, Amgen is also developing other drugs for weight management. However, it is worth noting that the company’s oral drug, AMG-786, is the second weight loss pill to be discontinued in the past year. Pfizer made a similar decision to discontinue its obesity pill due to patient tolerability issues but is now focusing on developing a once-daily version of the drug.
In addition to its weight loss endeavors, Amgen reported strong first-quarter results that exceeded Wall Street’s expectations. The company’s revenue for the quarter reached $7.45 billion, a 22% increase from the same period last year. This growth can be attributed in part to products from Horizon Therapeutics, which Amgen recently acquired. Amgen slightly adjusted its full-year guidance, projecting revenue of $32.5 billion to $33.8 billion and a full-year adjusted profit of $19 to $20.20 per share.
Overall, Amgen’s decision to discontinue its weight loss pill in favor of injectable treatments demonstrates the company’s strategic approach to capturing a share of the lucrative weight loss drug market. By investing in innovative treatments like MariTide and focusing on differentiation, Amgen aims to stand out among its competitors and provide effective solutions for patients struggling with obesity.
