Amgen has decided to halt the development of its oral weight loss pill, shifting its focus instead to advancing its injectable drug and other products in the obesity treatment pipeline.
The company’s decision to discontinue the oral drug comes amidst a highly competitive weight loss drug market dominated by Novo Nordisk and Eli Lilly. Amgen is directing its resources towards its injectable obesity treatment named MariTide, which is currently undergoing a midstage trial in overweight or obese adults without diabetes. Initial data from the trial is expected later this year, with plans for a late-stage trial already in discussion with regulators. Additionally, Amgen is considering a stage two trial for the treatment in diabetes management.
Investors responded positively to Amgen’s strategic shift, with the company’s shares surging over 10% in extended trading following the announcement regarding MariTide.
In addition to MariTide, Amgen has other drugs in its obesity treatment pipeline. However, this move marks the discontinuation of the company’s second weight loss pill within the past year, as Pfizer scrapped its obesity pill, danuglipron, due to tolerability issues reported in a midstage trial.
With an eye on standing out in the competitive market, Amgen’s experimental injection operates differently from existing injectable drugs. While similar drugs like Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound activate gut hormone receptors to regulate appetite, Amgen’s treatment also blocks a hormone receptor called GIP. This unique approach may offer advantages in terms of appetite suppression and metabolic effects.
Clinical trial data suggests promising outcomes for Amgen’s injectable treatment, with patients achieving significant weight loss within a short timeframe. Moreover, the company is exploring less frequent dosing options, potentially offering enhanced convenience compared to existing weekly medications.
In its recent earnings report, Amgen reported revenue and adjusted earnings that exceeded Wall Street’s expectations, partly attributed to products from the recently acquired Horizon Therapeutics. The company slightly adjusted its full-year guidance upwards, reflecting confidence in its product portfolio and future prospects in the obesity treatment market.
