Biotech
Friday, May 3rd, 2024 6:47 pm EDT
Key Points
- Amgen’s stock surged over 12% following positive initial data on its experimental weight loss injection, causing concerns about increased competition in the weight loss drug industry and leading to declines in shares of Novo Nordisk and Eli Lilly.
- Novo Nordisk’s stock faced pressure after sales of its weight loss injection Wegovy missed analysts’ estimates for the first quarter due to lower pricing, highlighting challenges in meeting demand for the treatment amidst competitive pressures from Eli Lilly’s Zepbound.
- Amgen expressed confidence in its obesity injection, MariTide, emphasizing its differentiated profile and potential competitive advantages, including less frequent administration compared to existing weekly injections on the market. Amgen’s focus on expanding manufacturing for MariTide signals preparation to meet supply demands, contrasting with struggles faced by Novo Nordisk and Eli Lilly in this regard.
Amgen’s stock surged over 12% after the pharmaceutical company hinted at positive initial data regarding its experimental weight loss injection, MariTide. This announcement sparked concerns among investors about potential competition in the rapidly expanding weight loss drug market, leading to declines in shares of Novo Nordisk and Eli Lilly. Novo Nordisk, already under pressure due to lower-than-expected sales of its weight loss injection Wegovy in the first quarter, experienced further decline in its stock value. During a first-quarter earnings call, Amgen’s CEO expressed optimism about MariTide’s early results and its potential to address unmet medical needs in obesity treatment. Although specific data was not provided, Amgen’s Chief Scientific Officer indicated that patient dropout rates were not problematic, with plans to release initial study data by late 2024 and conduct late-stage studies in patients with obesity-related conditions and diabetes. The injection’s potential competitive advantage lies in its less frequent administration compared to existing weekly injections on the market, such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound. Analysts are optimistic about MariTide’s differentiation potential and have upgraded their ratings on Amgen’s shares. Despite scrapping its experimental oral obesity drug, Amgen has begun expanding manufacturing for MariTide, signaling preparation for adequate drug supply. Meanwhile, Eli Lilly reassured investors about overcoming supply constraints for its drugs, leading to an increase in full-year guidance. Novo Nordisk faced disappointment as sales of Wegovy, although nearly doubling, fell short of expectations, attributed to competition from Eli Lilly’s Zepbound impacting pricing dynamics. Overall, while Amgen’s positive update on MariTide drove market optimism, challenges persist for other players in the weight loss drug market, particularly in meeting demand amidst competitive pressures and supply constraints.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/03/amgen-soars-on-weight-loss-drug-progress-novo-nordisk-eli-lilly-slide.html
