Amgen addressed concerns regarding its experimental weight loss drug, MariTide, following a significant drop in its market value. The stock of the company dropped more than 7% on Tuesday, November 12, following the scrutiny of researchers over data taken from an early-stage clinical trial establishing a potential link of the highest dose of MariTide with bone mineral density loss. According to the data of the trial, a 420-milligram dose of MariTide resulted in the reduction of bone density by 4% over the period of 12 weeks. Bone density loss can lead to weakened bones, which increases the risk of fracture, resulting in concerns regarding the drug’s safety profile. Amgen hit back quickly on Wednesday, saying that there is no cause for concern that MariTide causes meaningful bone density loss. The company said its findings in the Phase 1 trial did nothing to shake its confidence in the drug and reaffirmed its expectation of sharing more Phase 2 trial results by the end of the year. In reaction to this statement, Amgen’s share price surged by more than 1%. Analysts’ reactions to the data varied.
Cantor Fitzgerald’s Olivia Brayer highlighted the bone density reduction as a potential safety issue, noting that the loss was dose-dependent, meaning it increased with higher doses. However, Brayer acknowledged that weight loss itself could contribute to bone density changes. Meanwhile, Jefferies analyst Michael Yee downplayed the significance of the data, pointing out that bone mineral density fluctuations are a known side effect of rapid weight loss, which could explain the initial findings. Yee also emphasized that while bone density loss is a concern, it is not necessarily a long-term issue, as it tends to normalize over time.
BMO’s Evan Seigerman advised caution in drawing conclusions from the preliminary data, suggesting that the safety profile of MariTide should be evaluated with results from a larger cohort. He added that the market’s reaction to the data appeared exaggerated, and he believed the drug still held promise.
Amgen
MariTide, developed by Amgen, is positioned as a competitor to existing weight loss drugs from Novo Nordisk and Eli Lilly. Unlike other treatments that require weekly injections, MariTide is designed for monthly administration. Its mechanism involves blocking the GIP receptor, while also activating the GLP-1 hormone, both of which play a role in regulating appetite and metabolism. As the company moves forward with its trials, the focus will likely remain on further safety and efficacy data.
