In a recent development, Amgen announced on Tuesday that its experimental weight loss injection, MariTide, showed promising results in a critical mid-stage trial. The drug helped patients with obesity lose up to 20% of their weight on average after a year, with similar results seen in patients with obesity and Type 2 diabetes. Amgen highlighted that there was no plateau in weight loss observed within the trial, indicating the potential for further weight reduction beyond the 52-week mark. MariTide was administered monthly or even less frequently, giving it a potential advantage over existing weekly injections in the market.
Despite the positive findings, Amgen’s stock fell roughly 5% following the announcement, as the results were perceived to be at the lower end of Wall Street’s expectations. Analysts had been eagerly awaiting the trial results to see how Amgen’s drug would compare to weight loss injections from industry leaders like Novo Nordisk and Eli Lilly. Some analysts expressed concerns about MariTide lagging behind its competitors in terms of efficacy and market entry timeline.
Jared Holz, a healthcare equity strategist at Mizuho, noted that investors may still have more confidence in Eli Lilly and Novo Nordisk as dominant players in the weight loss drug market. Holz suggested that Amgen could potentially be a “distant third/fourth player” in this space, with MariTide likely not entering the market until around 2027.
The first part of the phase two trial, which involved 592 patients, tested different dose sizes, schedules, and regimens of MariTide. Amgen highlighted the potential for less frequent dosing of the drug, as patients who received the highest dose every other month experienced comparable weight loss to those who took it monthly. The company also addressed concerns about adverse side effects, with dose escalation significantly improving the rates of gastrointestinal side effects.
Looking ahead, Amgen plans to leverage the trial results to finalize the design of its late-stage study on MariTide, which is already in advanced planning stages. The company aims to position MariTide as a competitive option offering quick weight loss, improved weight maintenance, and fewer injections compared to existing treatments. Analysts project the weight loss drug market to be worth $150 billion annually by the early 2030s, providing a significant opportunity for Amgen to capture a share of this lucrative market.
In conclusion, while Amgen’s MariTide has shown promise as a weight loss treatment, the company still faces challenges in meeting market expectations and competing with established players in the industry. The upcoming phase three development will be crucial in determining MariTide’s long-term success and its ability to carve out a niche in the evolving weight loss drug market.
