- Amgen’s MariTide weight loss drug has completed its second phase of trials.
- Wall Street analysts did not believe the data showed enough differentiation.
- Citi lowered its price target on Amgen shares to $310 from $335.
- AMGN shares fell below $258 before recovering to $270.
Amgen Stock (AMGN) are falling Tuesday after their weight loss drug left more questions than answers. Phase 2 results from MariTide showed that participants lost about 20% of their weight over a one-year period while taking the GLP-1 drug. Analysts said this was on the lower end of results compared to the industry’s leading drugs on the market. Novo Nordisk (NOVO) and Eli Lilly (LLY).
Amgen shares plummeted below $258 before retreating towards $277 at the time of writing. Still, that leaves shareholders with a ~6% loss on the day.
The Dow Jones Industrial Average (DJIA), which includes Amgen, gained about 0.3% late in the session following morning losses. The market fell in the morning as President-elect Trump announced his plan to immediately impose tariffs on China, Canada and Mexico upon taking office in late January via executive order
Amgen Stock News
Data from MariTide’s phase 2 trial claims that participants who were obese or overweight but without type 2 diabetes were able to lose 20% of their weight in just over a year. However, at the exact one-year point, they had lost a smaller 17%.
This is good overall, but not industry-leading, as most other experimental GLP-1s have a 20% to 25% weight loss success rate. Additionally, Wall Street analysts expected more details on the results of the monthly or quarterly injection, but Amgen did not give the market much to rely on.
“Without monthly dosing, there could be headwinds for MariTide to carve out a long-acting injection niche in the market,” wrote Citi analyst Geoff Meacham. The analyst reduced his price target for AMGN from $335 to $310.
Analyst Michael Yee of Jefferies disagreed, saying, “The data supports monthly and perhaps less frequent dosing, but it is not yet clear whether quarterly dosing is a possibility.”
The current GLP-1s on the market require weekly injections and have shown weight loss for obese adults of between 15% and 20%. Yee, however, maintained his $380 price target.
In other news, President Joe Biden signaled his interest in allowing government insurance platforms Medicare and Medicaid to pay for GLP-1s for patients, a move that would greatly increase their demand among the general public. It is unclear whether this policy change could be implemented before the Trump administration takes office in less than two months.
Amgen Stock Forecast
Amgen has recovered quite well from the initial setback. In truth, the trial results are not that bad, but they may not be what is necessary for a $100 billion drug. It is now well above the $260 support, which it had initially broken.
That breakout may signal, however, that further weakness could be coming. If so, the summer 2023 support band of $211 to $218 may be the next viable option. To reengineer a recovery, AMGN must first reclaim the 200-day SMA, which is now at $305.
AMGN Stock Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
