Amgen Inc.’s shares soared in late trading after its chief executive officer said he was “very encouraged” by early results from a study of the company’s experimental obesity drug, MariTide.
“We recognize the significant interest in obesity,” Amgen CEO Robert Bradway said Thursday on a call with investors. “We are confident in MariTide’s differentiated profile and believe it will address important unmet medical needs.”
Amgen shares rose as much as 12% after US markets closed. If the gain holds into Friday’s regular trading, Amgen will be set for its biggest intraday increase since 2009.
The Thousand Oaks, California-based company has emerged as a potential competitor to Eli Lilly & Co. and Novo Nordisk A/S, whose dominance of the weight-loss market so far remains unchallenged. Demand for anti-obesity drugs like Zepbound and Wegovy is so insatiable that Bloomberg Intelligence’s estimate for $80 billion in annual sales by 2030 is now looking conservative, analyst Michael Shah said after Lilly raised its annual forecast earlier this week on demand for the therapies.
Read More: Amgen’s Weight-Loss Drug Shows Lasting Results in Early Study
Amgen is already investing in building out production capacity for MariTide, even though it’s still in mid-stage studies and hasn’t been submitted for regulatory approval. The company is planning late-stage studies in obesity, obesity-related conditions and diabetes, Bradway said on the call. The drug will likely be delivered in a handheld autoinjector that’s used monthly.
The company will focus on MariTide and discontinue development of another, earlier-stage drug called AMG 786, Jay Bradner, Amgen’s R&D chief, said on the call.
This article was generated from an automated news agency feed without modifications to text.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
More
Less
Published: 03 May 2024, 03:21 AM IST
