Amgen Stock Sinks as Obesity Drug Test Results Fail To Meet Expectations | Global News Avenue

Amgen (AMGN) The biotech company’s stock price plummeted on Tuesday after test results for an experimental weight-loss drug fell short of expectations.

The company reported Phase 2 study Its injectable MariTide drug has shown an average weight loss of about 20% over a year in obese or overweight patients without diabetes. Additionally, Amgen noted that the results did not plateau, suggesting that additional use may lead to greater weight loss.

However, analysts are looking for better results compared to Eli Lilly’s obesity treatment (Li Lai) and Novo Nordisk (non-governmental organization). They also expressed concerns about side effects and the number of patients dropping out of the study. Citi wrote in a note that “concerns about combined tolerability/discontinuation rates and overall competitiveness relative to Lilly or Novo contributed to share price weakness.”

Jefferies analysts noted that weight loss is expected to be 23% to 25%. Still, they called the stock selloff likely an “overreaction” and an opportunity.

Dr. Jay Bradner, chief scientific officer of Amgen, explained that these results give the company the confidence to initiate a Phase 3 study of MariTide. In addition, Amgen will present Phase 2 data “at a future medical conference” and submit it for publication.

The news sent Amgen’s stock price down nearly 8% in recent trading, to its lowest level since last spring.