Amgen’s MariTide: “Truly Remarkable” Results Tempered by Stock Decline

Amgen, a leading biotechnology firm, recently unveiled promising results for its weight-loss treatment, MariTide, designed for nondiabetic patients. However, despite what some analysts have called “truly remarkable” results, Amgen’s stock faced a significant decline of 4.8% on the announcement day, closing at $280.01. This downturn stands in stark contrast to the gains seen by competitors Eli Lilly and Novo Nordisk, whose stock rose by 4.6% and 1.5%, respectively.

Weight Loss Achievements

In a year-long study, patients receiving either monthly or less frequent doses of MariTide experienced a weight loss of up to **20%** of their body weight. This figure aligns with the maximum efficacy seen in Eli Lilly’s Zepbound, which is administered weekly. However, analysts from Mizuho Securities highlighted that Amgen’s results landed on the lower end of expectations and were numerically inferior to those displayed by Viking Therapeutics’ weight-loss injection, which saw patients lose **14.7%** of their body weight over a 13-week trial.

Comparative Mechanism and Side Effects

There are fundamental differences in action between MariTide and its primary competitors. While Zepbound mimics two hormones, GLP-1 and GIPR, to improve feelings of satiety and lower blood sugar, MariTide functions through GLP-1 agonism and GIPR antagonism. This unique mechanism, according to RBC Capital Markets analyst Gregory Renza, might suggest more enduring weight loss effects, particularly given that there was no observed plateau in weight loss among MariTide users.

Despite these promising outcomes, the clinical trial for MariTide showed a **higher** incidence of side effects compared to Zepbound, with approximately **11%** of participants dropping out due to adverse effects, primarily gastrointestinal. This dropout rate was higher than the **7%** in a Phase 3 study of Zepbound. Nonetheless, Amgen executives, including executive vice president Susan Sweeney, expressed optimism regarding MariTide’s potential, labeling it as **”unique and differentiated”** and indicating it aims to meet a significant unmet medical need in the obesity treatment market.

Stock Market Reactions

After unveiling the MariTide results, Amgen’s stock dropped significantly, reflecting investor skepticism and concerns about the product’s competitive positioning. Analysts emphasized that the excitement around weight-loss treatments had surged in the wake of President Joe Biden’s proposal for Medicare and Medicaid coverage of weight-loss medications. Consequently, shares of Eli Lilly and Novo Nordisk experienced gains, a phenomenon indicative of investor sentiment leaning more favorably towards established competitors.

Next Steps in Development

Amgen plans a continuation of its Phase 2 study for MariTide, which will delve into quarterly dosing regimens to assess whether weight loss can be sustained over time. The company also announced a Phase 3 study, dubbed **Maritime**. Notably, while fewer early results on the dosing of MariTide were disclosed, analysts maintain a cautious optimism, perceiving it as having a potential market advantage due to its less frequent dosing schedule compared to its main competitors.

Evaluation of Safety Profile

The safety profile of MariTide also raises questions. Although nausea and vomiting were reported primarily in association with the first dose, Amgen provided insights suggesting that most side effects were **mild** and manageable with slower dosage escalation. This perspective aligns with RBC’s analysis, which suggests that while the discontinuation rates were on the higher side, they remain **acceptable** by industry standards.

Conclusions from Clinical Results

Another facet of Amgen’s research showcased that patients with type 2 diabetes using MariTide lost up to **17%** of their body weight and experienced an average drop of **2.2%** in their HbA1c, a crucial measurement of blood sugar levels over time. These results were framed by Sweeney as **”truly remarkable,”** and significant improvements in cardiometabolic indicators were observed, including blood pressure and triglycerides.

While Amgen’s journey with MariTide is poised against a backdrop of competitive dynamics in the weight loss medication market, the company remains committed to seeing its treatment through rigorous testing and potential commercialization. The unique dosing convenience, coupled with its notable efficacy, could carve out a distinctive place for MariTide within a market ripe for innovation.