Amgen shares pare losses as drugmaker sees no bone safety concerns in obesity drug

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

The stock previously shed more than 7% in the prior session following a report from analysts at Cantor Fitzgerald which suggested that their review of data on MariTide showed it had influenced a dip in bone mineral density. The figures 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 said that mid-stage trial results for the potentially lucrative obesity medicine would be available in late 2024. Investors have subsequently turned their focus to the readout, which could serve as an indication of Amgen’s position in the race to roll-out weight-loss drugs.

Securing a piece of the obesity market, which some analysts estimate could soar to be worth hundreds of billions of dollars a year, would prove to be a boon for Amgen’s sales. According to Amgen Chief Scientific Officer Jay Bradner, MariTide could be the first therapy in this market to require monthly or even less frequent dosing.

CEO Bob Bradway said Amgen is “well advanced” in preparing to launch a Phase 3 testing round of MariTide in order to have enough data to allow the drug to receive approval from regulators. Amgen has also begun to examine a different weight-loss drug candidate, although few details have been disclosed, Reuters reported.

Amgen posted profit of $5.58 per share in the third quarter, rising by 13% from a year earlier and topping analysts estimates, according to LSEG data cited by Reuters.

Revenue for the period, meanwhile, came in at $8.5 billion, roughly meeting expectations.

For the fiscal year, Amgen guided for earnings of between $19.20 and $20.00 a share, compared to its previous estimate of $19.10 to $20.10. The midpoint of its revenue outlook was lifted as well.

Analysts have noted that, given the muted returns and slightly altered guidance, investors’ sentiment around Amgen will likely heavily depend on the outcome of the Phase 2 trial of MariTide.

(Reuters contributed reporting.)